Leasehold Highly Profitable Motor Factor In Birmingham Price Reduced For Sale

Business description

The particular highlights of the business are:
- Excellent long term contracts – contact for further information.
- A well established business.
- Good loyal clientele.
- Fully equipped business with favourable lease terms (see below).
- Turnover in excess of £500,000 pa with a net profit of £60,000 (see financial summary below).
- A business with great potential.
- An easily run operation.
- Good loyal well trained staff.
- A good first time buyers business and ideal purchase for an existing motor factors company or other similar within the automotive industry looking to increase their portfolio or sphere of operations.
- Low rent and rates.
- Very low overheads.
- Business enjoys superb local reputation. They have been established for 30 years.
- The company prides itself on the quality of its products and services. As a matter of policy concentrating on parts manufactured to Original Equipment (OE/OES) standards, ensuring the best possible service levels by carrying a wide range of stock. The business provides garages and dealerships in the area with deliveries within the hour or less and will carry additional bespoke stock to suit customers’ vehicle profiles. To ensure delivery targets are met they run four vehicles and a motorcycle.
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History
Agents are delighted to place onto the market this Highly Profitable and Established Motor Factors which has been established for 30 years. The business has been in the hands of the current owner since 2007 and he now wishes to sell due to other business interests.

Services
This very good company prides itself on the quality of its products and services. As a matter of policy concentrating on parts manufactured to Original Equipment (OE/OES) standards, ensuring the best possible service levels by carrying a wide range of stock. The business provides garages and dealerships in the area with deliveries within the hour or less and will carry additional bespoke stock to suit customers’ vehicle profiles. To ensure delivery targets are met they run three vans plus a motorcycle.

Staffing
The concern employs seven full-time staff.

Owners Role
The owner is involved in overseeing staff and helps support.

Marketing
The owner markets the business via the internet and has a website. There is also a sales team.

Competition
As far as competition is concerned there is very little in this location.

Market
The client base consists of garages and dealerships as well a high volume of trade to the public. The business also boasts some major and highly lucrative commercial contracts.

Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Increasing the opening hours to include Saturday afternoon and Sunday trading.
• Winning more lucrative contracts to service (ie) currently working police force vehicles.

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.


The present annual turnover is £525,986 and a net profit of £60,000. The present value of the stock is £127,000 which is included in the sale price.
The potential turnover of the business within the next 2 years is forecast to reach £600,000 pa 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.

Disclaimer
These details do not constitute part of an offer or contract.
The statements and descriptions given are made without warranties by Phoenix Business Agents Limited who it should be noted have NOT verified the information provided.
Purchasers should in all cases undertake financial due diligence using their own professional advisors before committing themselves in contract rather than relying on illustrations ,figures and information given on behalf of the seller.

Property information

Property:

Leasehold

Lease terms:

The new lease being offered by the landlord is for 10 years with 10 years remaining. The rent is £19,200 pa with five yearly reviews. The lease may be renewable or negotiable for longer term if required. The rates are £4,500.

Leasehold rent:

£19200pa per annum

Location:

- Situated in the Highgate area in the city centre area of Birmingham.
- Prominent location on main arterial road.
- Excellent free parking facilities nearby.
- Part of an industrial estate.
- Surrounded by densely populated residential area with schools and other local amenities.
- High levels of passing trade.
- Good volumes of traffic and pedestrian flow.
- Commercially thriving area.
- Well linked with the A38, A41, A4540, A441, M5, M6 and M42.
- Birmingham City Centre, Digbeth and Bradesley all lie close by.
- Area enjoying much growth and regeneration.
- Excellent local demographics for this type of area.

Premises details:

The property is terraced, part of a parade of shops and is approximately 4,000 sq ft. The front is branded with an attractive glass front. There are electric shutters and a CCTV system. The main customer service area is tiled with a middle aisle and shelving to the walls. It is very well presented and is very conveniently laid out.

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

Size in square feet:

4000 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 and local and internet advertising.
• Increasing the opening hours to include Saturday afternoon and Sunday trading.
• Winning more lucrative contracts to service (ie) currently working police force vehicles.

Competition / Market:

As far as competition is concerned there is very little in this location.

Reasons for selling:

now wishes to sell due to other business interests.

Trading hours:

Monday to Friday: 8.30am to 5.30pm
Saturday: 9.00am to 1.00pm
Sunday: Closed

Employees:

The concern employs seven full-time staff.

Years established:

30 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:

£30,000 (included in the asking price)

Inventory / Stock value:

£127,000 (included in the asking price)