Builders Merchants And Diy Centre In Doncaster For Sale

Business description

Builders Merchants and DIY Centre with Freehold Site

This is a well run, all year round, independently owned family business which was established in 1988 moving to its present site three years ago, when the current owners took over the running of the business. The owners have invested wisely and completely re-furbished the site establishing the business as the key supplier of building materials and DIY supplies to both the general public and a small amount of builders within the local area.

This is a circa ¾ acre well maintained site in a first class location situated on a main road close by to the local town centre. Within the site there is an outside area for the storage and sale of building materials including, blocks, paving stones, sand, cement and fencing with an inside showroom selling all DIY materials from plumbing supplies, electrical accessories and gas bottles plus thousands of other items. A newly developed bathroom showroom is now in working order with spare capacity inside to expand into other related product areas such as tiling etc.

With little competition in the local area the owners have been able to deal directly with distributors whilst maintaining good profit margins in an industry that is renowned for its competitiveness. The owners rely mainly on their retail trade but have a small amount of trade customers who buy from them on a regular basis. The company is run on sound business principles with low overheads and has vast scope for expansion within its current site.

Equipment:

The company has all the necessary equipment needed for the operation of a business of such a scale. This includes a fork lift truck, an 18 ton truck with crane, and all internal and external racking, fixtures and fittings.

A full list of equipment is available to all genuinely interested parties.

Customer Service:

This is a business were customer service is paramount to the success of the business. They have regular repeat daily retail customers with circa 20 trade account customers who buy their building supplies such as sand and cement.

The company offers a delivery service which for large deliveries is FOC.

Key Strengths:

The key strength of this business is the location of the site. It is situated on a main roadside with a tremendous amount of daily passing traffic. Add to the fact that there is no local competition with the nearest competitor being circa 20- 30 minutes away, gives the company a distinct sales advantage.

The business provides a one shop stop with a huge choice of essential building materials and DIY items always in stock. If the company don’t stock an item they are always happy to make a special order for the customer

This is a financially sound company with low overheads, no bad debts and a good cash flow situation. The owners have invested heavily on re-furbishing the site to a high standard which is in good and attractive working order.

Financial Information:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover is circa £443,000 with Net Profits of circa £30,000. The Freehold site was last valued at £800,000.

Property information

Property:

Freehold

Location:

The business runs from a freehold circa ¾ acre secure site on a busy main road nearby to a local town centre with no immediate competition nearby. Outside there is a display area with seasonal impulse purchase products and ample parking for customers. At the back of the building there is a large yard with storage for fencing products and building materials. There is ample room to increase the choice of materials and introduce other products. The owners have recently had an outside storage/garage area built which is currently being used as a garage area. This has tremendous potential for storage/sales of other related product areas.

Business Operation

Expansion potential:

The company has achieved consistent turnover and profits for the past three years since its re-location, but the owners realise that there is tremendous potential to rapidly grow the business to a new level. The company has no website and has the potential to open on Sundays and Bank Holidays when many enthusiastic customers perform their household repairs and improvements.

The owners have concentrated their efforts on building up the retail side of their business accounting for circa 80% of the turnover. An obvious way to increase the sales would be to attract more trade customers such as builders, plumbers and landscape gardeners who would buy their supplies and materials on a daily basis. All sand and gravel is pre-packed with an opportunity to sell in larger loose quantities to the trade.

There is also an opportunity to expand their hire business by supplying other equipment to both the DIY enthusiast and trade customers alike. There is no other hire company within the local area. Inside there is room to widen their range of product offering. Obvious areas to expand are tiles and associated flooring products.

Reasons for selling:

The owners have worked tirelessly over the years to build up their business. They are now nearing retirement age and would like to take life easier. The business works well, is profitable with no bad debts, good cash flow and has tremendous growth potential.

Employees:

5

Years established:

1988

Other information

Support & training:

The owners would be happy to help with a smooth transfer of the business in any way possible.