Established Interior Decorator With Soft Furnishings Furniture For Sale

Business description

Established Interior Decorator with Soft Furnishings, Furniture and Home Accessories Retail Outlet

Established as an interior decorator for nearly thirty years and in its present retail location for the vast majority of this time, this business has performed consistently over the years and has established an excellent reputation for its range, quality of workmanship and high levels of customer service. This has contributed significantly to it having built an extensive base of repeat Clients located in an area of Surrey with a high density of top quality private homes owned by many high net worth individuals with City connections.

Operating from a prominent High Street retail location in a very attractive, affluent Surrey village, this business offers an Interior Decorating Consultancy service based around a core retail range of fabrics, wallpapers, curtains and window treatments, soft furnishings, furniture, floor coverings, lamps, lighting, pictures and decorative accessories.

Directed very much at the decoration and refurbishment of property at the very top end of the market, this business would not be out of place in Knightsbridge, Kensington or Chelsea working as it does with many leading brands and as a major supplier in the south east for the Colefax and Fowler group of companies. In the enviable position of having very few directly comparable competitors, the business is perfectly placed to satisfy the significant demand from the affluent residents of surrounding towns and villages. Alongside its own commissions, the business has a very useful collaborative relationship with an architectural design service, often developing projects for joint benefit.

Regardless of the size of the project – from the smallest set of cushion covers through to a complete home design concept, this business prides itself on its detailed knowledge, experience and expertise, competitive pricing, high levels of customer and after sales service.

With turnover for the financial year ending August 2009 slightly in excess of £325,000, generating gross profits of almost £150,000 and an adjusted pre-tax net operating profit of £44,000, this is an excellent opportunity to acquire a very well established business with an excellent reputation for quality and service and an extensive, repeat, affluent Client base.

Key strengths:

Although based in a small village, the business operates from a prominent location on a major High Street with large volumes of passing traffic, ensuring high levels of top of mind awareness amongst ‘local’ residents and shoppers visiting the area. Easy parking, adjacent to the outlet ensures a steady footfall into and past the shop. It has little or no comparable competition within many miles ensuring that it is the first choice of residents across a number of local towns and villages in which the homes of many high net worth individuals are situated.

Having been established as an interior decorator for nearly thirty years, this business has built an excellent reputation. Design flair and an attention to detail combined with the versatility and high levels of personal service it offers ensures a steady stream of customers new and old, keen to take advantage of the excellent service and competitive prices offered by this business. It has an extensive base of repeat Clients that return to this business time and time again.

It has excellent supplier relationships and only works with the crème de la crème of manufacturers. It is one of the major suppliers in the South East for the Colefax and Fowler group of companies. This business also has excellent resources on which to call to ensure the highest quality outcome for its Clients – curtain makers, fitters, upholsterers, joiners, painters and decorators and even builders have all worked with this business over the years and are guaranteed to provide the highest quality of workmanship.

Key opportunities:

There is an outstanding opportunity to build on the existing services and customer base of this company. With a strong demand for services combined with a capacity to increase turnover, a new owner contributing fresh ideas, motivation and investment in resources will have every advantage of building on an excellent platform.

This business does little in the way of advertising and marketing relying on its excellent reputation and word of mouth recommendation. This business does not have a web presence. With Internet retailing becoming an increasingly important source of revenue for many companies and with the excellent reputation this business has built up within its local area, an effective, well designed web-site either acting as a brochure for its excellent range of services or better still focussing on the retail side of the business, would have a significant impact on turnover and profitability.

Aside from its relationship with an architectural design service, the business currently concentrates purely on domestic commissions and its retail offering. There is certainly the opportunity to develop more of a ‘trade’ side to the business, leveraging its excellent local reputation to establish relationships with the many Architects, Specifiers, Lettings and Management agencies and building developers operating in the area.

Customer service

The essence of this business is the personal relationships developed with the customer over the lifetime of a project. No job is too small or too large! From simply helping choose the fabric for a set of cushions through to a complete ‘makeover’ a high standard of customer and after sales service is crucial. This business does everything possible to enhance its excellent reputation, working very closely with Clients to meet and indeed exceed their expectations.

Financial information:

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

Turnover for the financial year ending August 2009 was slightly in excess of £325,000, generating gross profits of almost £150,000 and an adjusted pre-tax net operating profit of £44,000.

The Asking Price of £75,000 is for a sale of the assets and goodwill to include stock of £20,000.

This business has a very close relationship with an associate company, an architectural design service with which the business works closely on some projects. The architectural design service may also be available for sale, subject to negotiation.

Property information

Property:

Leasehold

Lease terms:

Rent is £10,500 per annum with Rates slightly in excess of £2,500 per annum.

Location:

The business operates from a top quality showroom in a very attractive village High Street location. Approximately 90 square metres of retail space in all, with an additional 13 square metres of storage available in the basement, the premises are leasehold with the current arrangements due for renewal in 2014.

There is ample parking adjacent to the property with additional on street parking very close by.

Rent is £10,500 per annum with Rates slightly in excess of £2,500 per annum.

Business Operation

Competition / Market:

Having been established for almost thirty years this business does little by way of advertising, relying on the most effective form of marketing, word of mouth recommendation, testimony to the excellent reputation this business has for competitive pricing and high levels of quality workmanship. What advertising this business does is limited to its inclusion in manufacturer stockists listings in the trade glossies. Perhaps its most effective advertising however is its High Street location which acts as a very impactful advertising hoarding.

Reasons for selling:

This is a genuine retirement sale.

Employees:

The owner is responsible for the day-to-day management of the business, supported by part time staff including a designer working a minimum three days per week, a trainee designer working two part days per week, a general assistant working a couple of mornings a week, a secretary/PA working three to four days a week and a bookkeeper.

Other information

Support & training:

The vendor will be available for training and handover to ensure a smooth transfer of the business to new Owners.