Very Profitable Hertfordshire Newsagents For Sale

Business description

Business Details
The particular highlights of the business are:
- Ideally located concern offering excellent lifestyle.
- A well established business.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £250, 000 with a net profit of £28,000 (see financial summary below).
- A business with great potential which has not been exploited.
- An easily run operation.
- Good loyal well trained staff.
- A good first time buyers business.

History
Phoenix Business Transfer Agents are delighted to place onto the market very profitable newsagents which has been established for over 50 years. The business has been in the hands of the current owners since 1984 and they now wish to sell due to ill health.

Services
This very good business opportunity provides newspapers, magazines, groceries, greetings cards, tobacco, stationary and Weston Union Money Transfer.

Staffing
The concern employs one staff who is part time. They are paid at the rate of £6.00 per hour. The total wage bill is £4,680.

Owners Role
The owner’s role is hands-on and they work 6 days a week.

Marketing
The owner markets the business in some local newspapers but doesn’t have a website.


Competition
As far as competition is concerned there is some nearby but this concern continues to make a healthy profit.

Market
The client base consists of local and passing trade.

Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings, local and internet advertising.
• Increasing the opening hours to include evenings to improve off license trade.
• Increasing the product line to include a larger selection of alcoholic drinks.
• Becoming more efficient with staffing levels.
• Working more hands on hours and saving on wages.
• With the introduction of a website and e-commerce.

Training and Handover
The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Property Details
The property is terraced and is part of a parade of shops and is approximately 600 sq ft. The front is branded with an attractive glass front. The main customer service area is tiled with a middle aisle, shelving and racking to the walls. It is very well presented and is very conveniently laid out.

To the rear is a store room. There is a toilet, staff facilities and a fully equipped kitchen.

First Floor
On the first floor there is a 3 bedroom apartment with a sitting tenant which generates £6,600 pa.

External
To the rear there are two additional small store rooms.

Equipment with sale
All fixtures, fittings and equipment are included in the sale price and are valued at £3,500.

Financial Details
The present turnover is £260,000 per year with a gross profit of £46,800 and a net profit of £28,000. The wages are £4,680 pa. The present value of the stock is £17,000.
The potential turnover of the business within the next 2 years is forecast to reach £340,000 given the changes that are required to be made to the business. Full financial disclosure is available on request after viewings and the signing of a confidentiality agreement.
Please note Phoenix do not guarantee the accuracy of these figures which are in many cases estimated and are not verified. Please do not rely on the accuracy of these figures and seek professional help before making any offers. Phoenix will not be held liable for any inaccuracies in these figures or any other statements contained in relation to this business.

Property information

Property:

Leasehold

Lease terms:

The new lease to be issued will be a 15 year lease. The rent is £14,500 pa with a review in 2013. The lease may be negotiable for longer term if required. The rates are £5,200.

Leasehold rent:

£14,500 pa per annum

Living accommodation:

First Floor On the first floor there is a 3 bedroom apartment with a sitting tenant which generates £6,600 pa. External To the rear there are two additional small store rooms.

Location:

- Situated in High Street area of Stevenage in Hertfordshire.
- Prominent location on main arterial road.
- Part of a parade of shops.
- Excellent parking facilities.
- Surrounded by a densely populated residential area with schools and other local amenities.
- Local population consists of 30.34% of people fall into Social Grade AB. The second highest proportion of 29.89% belongs to Grade C1, whilst 5.08% fall into Grade E, the least represented band.
- Area offers exceptional lifestyle.
- High levels of passing trade.
- Good volumes of traffic and pedestrian flow.
- Commercially thriving area.
- Well linked with the A1072 and A602.

Premises details:

The property is terraced and is part of a parade of shops and is approximately 600 sq ft. The front is branded with an attractive glass front. The main customer service area is tiled with a middle aisle, shelving and racking to the walls. It is very well presented and is very conveniently laid out.

To the rear is a store room. There is a toilet, staff facilities and a fully equipped kitchen.

Size in square feet:

600 sq ft

Business Operation

Expansion potential:

The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings, local and internet advertising.
• Increasing the opening hours to include evenings to improve off license trade.
• Increasing the product line to include a larger selection of alcoholic drinks.
• Becoming more efficient with staffing levels.
• Working more hands on hours and saving on wages.
• With the introduction of a website and e-commerce.

Competition / Market:

As far as competition is concerned there is some nearby but this concern continues to make a healthy profit.

Reasons for selling:

Owners wish to sell due to ill health.

Trading hours:

Monday to Friday: 6 am to 6 pm.
Saturday: 6 am to 5.30 pm.
Sunday: 6 am to 1 pm.

Employees:

The concern employs one staff who is part time. They are paid at the rate of £6.00 per hour. The total wage bill is £4,680.

Years established:

Over 50 years

Other information

Support & training:

The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Furniture / Fixtures value:

£3,500 (included in the asking price)

Inventory / Stock value:

£17,000