Stourport On Severn Supplier Of Chipped Potatoes For Sale

Business description

Supplier of Chipped Potatoes to the Catering Trade

Sales £400.000 per annum and Rising. with High Gross Profits

Based in Stourport on Severn and Covering a Wide Geographical Area. Radius Around 70 miles

Regular Repeat Business from Established Customers

No Premises Costs and Easily Relocatable

Price £50.000

Description and Trade:
This Business was established by the present owner around five years ago. supplying mainly Fish & Chip shops with fresh ready to fry chips in convenient 10kg bags. Trade has grown year on year. and continues to grow by 15% 20% each year as new customers are attracted to the benefits of using ready to fry chips. as opposed to spending much time and effort peeling. preparing and chipping potatoes ready for use.

The prepackaged chips are sourced almost daily from a local supplier. quantities are purchased to meet demand and delivered fresh to customers. Therefore no expensive refrigeration equipment is needed to maintain. and no premises are required to store the product.

The present customer base consists of around 45 established customers within a radius of 70 miles. and each customer receives regular delivery of chips approximately three times each week from one of the three delivery vehicles in operation.

The nature of the trade is for customers to pay cash on delivery of the product. but suppliers are paid in arrears. Therefore the Business is always in a positive cash flow position because no excess stock is held.

Overhead costs are kept to a minimum. and consist only of operating the vehicles and paying staff to handle the deliveries.

Premises:
The Business requires no premises. and therefore there are no premises costs.

Comments:
This is an unusual business. in that it is easy to operate. could be relocated with almost no effort. and is always in a positive cash flow situation.

Lots of potential exists to widen the customer base. attract more customers and further increase sales and profits.

The owner has generously offered to provide a new owner with a training period to familiarise them with the business and point out areas suitable for expansion.

Our Client Informs Us That:
Takings and Profitability:
Sales for the present year are stated to be around £400.000. with gross profits of 25%.

However it must be noted that potato prices are relatively high at the moment. and in previous years when potato prices were lower gross profits have reached 40%. It would appear that as potato prices fall. gross profits will rise again.

Trading Hours:
Flexible trading hours to suit the operator?s and customers? requirements and geographical areas.

Staff:
The owner employs one full-time and two part-time delivery assistants.

Annual Operating Costs (approximate only):
Vehicle Operating Costs: £9.000

Fuel Costs: £26.000

Staff Costs: £26.000

Price:
£50.000 for the Business and Delivery Vehicles.