Photographic & Retouching Agency In London For Sale

Business description

Business overview

– Outstanding opportunity to acquire a highly successful professional Photographic Agency with an exceptional client base and significant growth potential.

– Established in 2003, the business has developed an extremely loyal client base of over 25 clients, most of whom are global brands and/or household names including high street retailers, fashion houses and banks.

– The business provides a range of photographic services to its diverse client base and has a robust annual diary of regular work from a range of blue chip clients.

– The leasehold premises are situated in a highly accessible London location and comprise two main studios, various retouching suites and with additional meeting and client areas. Total space c.2500 sq ft. There is also a mobile studio for location use and an on-site client studio.

– The majority of the business’ current clients are on rolling annual contracts with 6 month notice periods and the majority of the client relationships are long standing with a rolling annual pattern of regular work.

– The business has been largely unaffected by the economic downturn and delivered 8% growth in the financial year 2010/11 and is on track for similar growth in 20011/12 with projected revenue of £506,000.

– The business delivers high gross margins in excess of 85% and manages its overheads very effectively to yield a consistent pre-adjusted net profit in excess of 35%.

– The business has maintained its position of providing a quality service at an appropriate price rather than reducing its pricing structure to drive sales volume in the economic downturn.

– Projected gross margin for 2011/12 is £443,000 and projected pre-adjusted net profit is £190,000.

– The business has historically made no business development effort and has relied solely on word of mouth and referrals from existing clients. There is therefore significant potential to develop the business proactively, particularly in light of the exceptional portfolio of current clients.

– The business has 5 full time employees not including the owners, plus 3 freelance staff and 2 recently appointed commission only sales agents. The staff team are managed by an overall manager and potential successor for the leadership of the business who already has a position of overall authority.
– Whilst one of the principal shareholders of the business is still involved in the photographic project side of the business, there is no dependency on the current owners for the maintenance of client relationships and most of this responsibility is already delegated to the staff team.

– This business could be of particular interest to either larger photographic or full service media agencies that could benefit from the existing contracted recurring revenues, or to investors who are looking for an opportunity to take on a well established and profitable business with an excellent client base but with significant growth potential.

Financial overview

YE: 31st March 2012 (forec)
Sales revenue: £506,804
Gross Profit: £443,718 (88%)
Adjusted EBITDA: £193,492 (38%)

The adjusted EBITDA is stated after adding a replacement cost for the two directors.

Reasons for Sale

There are two principal shareholders of the business and one wishes to enter full retirement and the other wishes to pursue other interests outside of the field of photography.

Despite the strong succession plan the owners would want to facilitate a smooth transition of the business into new ownership and would be happy to commit to a handover period on terms to be agreed and would not exclude the possibility of on-going consultancy work if this was required by the buyer.


Offers invited

Property information

Property:

Leasehold

Business Operation

Reasons for selling:

Retirement

Employees:

5

Years established:

9

Other information

Financing available:

Hornblower has established links with banks and other financial institutions that we can introduce you to.

Related documents:

• 
• Confidentiality Agreement

• 
• Business Summary

Relocatable:

This business can be relocated.