Commercial Bottled Gas CO2 Liquid Nitrogen Supply Company For Sale

Business description

Commercial Bottled Gas Supply Company CO2, LIQUID NITROGEN & HELIUM

The vendor of this business has many many years experience in this market and has a solid reputation for providing a competetive and reliable cylinder gas service to clients within several market sectors. This company supplies and distributes bottled gas to commerical customers in and around the Greater Manchester area. The business supplies a varied array of clients and has some two hundred regular retail customers including public houses, restaurants, nightclubs, balloon shops and florists(helium). The business provides a quick and speeedy reponse to customers and provides a safe and reliable delivery service. This is because the business model is very straight forward and cost effective.

Equipment:

The business holds a very large stock of gas bottles that are well maintained, regularly tested and regulated.

• Approx 1300 Gas Cylinders varying from 10Litre to 50Litre sizes
• 2 Delivery Vans

It is anticipated that the total value of plant and equipment is circa £100,000. All equipment is included within the sales price.

Customer Service:

The business has built up a superb reputation in the market it serves for providing good quality gas and a reliable delivery service. This is demonstrated by the fact the business enjoys good levels of customer retention and new referrals on a weekly basis.

Key Strengths:

This business has a good level of cylinder stock to increase capacity if need be. It has good supply relationships and a large loyal and growing client base. The profit margins available to a new owner are significant. Typical mark up for bottled gas can very high making this a very lucrative business. This together with the excellent reputation, low overheads and levels of service sets this business apart. The business is well positioned for future growth as all the necessary foundations are already in place.

Key Opportunities:

The business model is truly scaleable. There is no reason why the business could not expand its geographical spread such is the demand for products. There is also the opportunity to supply complimentary products to the captive market the company serves. This could include janitorial and cleaning products, not to mention bottled wines and beers.

The company currently undertakes no marketing activity. Further work in this area would increase exposure and drive up sales.

Financial profile:

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.

Business sales for last calendar year were in excess of £80,000 excluding VAT. Resultant Profits available to the vendor circa £30-35,000 p.a. This business represents an ideal investment opportunity with huge scope for further development.

Property information

Property:

Leasehold

Location:

The business is run from a home office environment. It also has a small secure storage facility which it rents(circa 600 square feet) ona very flexible basis. Rent is circa £50 per week. The business could easily be relocated if need be.

Business Operation

Competition / Market:

To date the business has not felt the need to carry out traditional advertising as it benefits greatly from the most effective forms of marketing available, word of mouth recommendations and referrals. There is an opportunity for a new owner to develop this side with the introduction of a company website as well as undertaking some marketing and advertising activity.

Reasons for selling:

The vendor is emigrating.

Trading hours:

Monday – Friday: 0900-1700

There is no reason why a new owner could not increase opening hours if so required.

Employees:

The vendor currently runs the business on a full time basis with the help of a family member.

Other information

Support & training:

The current owners would be happy to provide full training and support at handover to ensure continuity of trading.