Cleethorpes Coast Light Railway For Sale

Business description

Cleethorpes Coast Light Railway For Sale

Narrow Gauge Railway with Bistro, Pub, Shop & Museum

This is a unique opportunity to acquire the East of Englands last surviving steam seaside light railway that was built in 1948 and has susequently been extended twice to its current length, which totals circa 2.25 miles. This narrow gauge railway is one of the biggest tourist attractions in this seaside tourist town with over 120,000 passengers per annum happily spending time at its wonderfull facilities. The railway was council run till 1990 when the current owners took over the running of the line, they have invested heavily over the years to bring the line to its wonderfull current condition. The company prides itself on its exemplary safety record and provides a safe environment for holiday makers to enjoy a ride on an old fashioned piece of history.

The track runs along the seaside calling at three stations. The main central station has added attractions including a tea room, one of the smallest pubs on the planet, a museum, a shop where you can buy model railways and souvenirs, a ticket office and a bistro which serves light meals and snacks, every day all year round from 8.30am – 4.30pm. There is an option to purchase the business excluding the Bistro.

Trains run at regular intervals – weekend throughout the year and daily from June to September. There are also special events throughout the year including “Easter Egg specials”, “Folk n Cider weekend”, “Real Ale festival”, “Oktoberfest”, “Halloween” and “Santa Special Trains”.

The company owns a number of steam locomotives and diesel engines, some of which were purchased with the help of a National Lottery grant in 2006. The rolling stock includes steam locomotives;- “Sutton Belle”, “Sutton Flyer”, “Mountaineer”, “Crompton” and “Mighty Atom/ Prince of Wales” which is the second oldest steam locomotive in the world. Diesel engines include;- “Battison”, “Dudley”, “Dai” and “Toby”. Engines are stored and maintained in the Engine Shed which has repair facilities and equipment and houses up to eight engines at any one time. The company have recently received planning permision to use a small plot of land adjacent to the line to build a carriage shed, which can house over 30 carriages.

The company runs with a small permanent staff and with the help of a number of a number of volunteers, mainly during the peak season and at weekends. There is a supporters association who pay an annual suscription and supporters are kept informed of events by means of a regular newsletter.

The owner and his wife have successfully and happily run the line for the past twenty years investing their time, effort and money to improve all aspects of this narrow gauge railway and its facilities. Rolling stock is now generally in good condition with turnover now coming from three main areas;- a) ticket sales b) shop sales c) catering sales. The newly created bistro has already started to flourish and sales are exceeding expectations.

The business has a 99 year lease which was taken out in 2010 with low rent and rates charges from the local council recognising the importance of the railway to the tourist trade of the town.
Key Strengths:

• Major tourist attraction with over 120,000 passengers per annum
• Multiple income streams including ticket sales, catering, pub and bistro.
• All year round business with peak periods
• Wide inventory of rolling stock
• 2.25 mile line
• Volunteer workers
• Circa ninety nine year lease
• East of England’s last surviving seaside light railway
• Excellent safety record
• Low overheads

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.

The company has a turnover of circa £297,000 per annum with Gross profits of circa £197,000 per annum.

These financial figures do not take into account the new Bistro.

The asking price for the business with the Bistro is £665. There is an option to exclude the Bistro, therefore £595 for the Rail business and £70k for the Bistro.

Property information

Property:

Leasehold

Lease terms:

The lease on the railway line and all of its building runs for 99 years and was granted in early 2010. The current rental is circa £7,500 per annum with rates of circa £3,000 per annum.

Location:

The business has three stations each with its own ticket office. The main central station has a tea room, one of the smallest pubs on the planet named “ The Signal Box”, and a museum housing engines not in service. There is a separate shed which houses up to 8 engines for vital maintenance and repairs. Across the road from the station is a shop selling model railways and souvenirs. The lease on the railway line and all of its building runs for 99 years and was granted in early 2010. The current rental is circa £7,500 per annum with rates of circa £3,000 per annum.

The bistro is a separate detached building which has a 25 year lease with rental of £1,500 per annum. It has circa 24 seats and was re-furbished and opened in May 2010.

Business Operation

Expansion potential:

The company have recently re-furbished and opened a bistro which has seating for 24 covers. They are currently open every day from 8.30 – 4.30pm and sales are already exceeding expectations. The bistro is next door to a new events area and passing traffic to this area is increasing all the time helping to drive up the turnover.

The railway has planning permission to build an engine shed which will be able to house up to 30 carriages. This will enable the company to garage all of their rolling stock each evening and to improve the working conditions for performing maintenance and repairs.

Reasons for selling:

The two partners have been working full time within the business for over 25 years and have decided they would like to sell the business and take life easier

Trading hours:

The business runs every weekend throughout the year and every day from June to September. There are special events throughout the year and they are also open at Easter and Half Term.

Employees:

The business runs with four full time employees, two of which work on the railway and two who work in the Bistro, plus the two owners who work everyday within the business. There are a number of part time staff, mainly during the peak periods, and a number of volunteers who work on the railway as train drivers and mechanics.

Years established:

1948

Other information

Support & training:

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