Licensed Adult Shops With Wholesale And Internet Sales For Sale

Business description

4 licensed gay adult shops with wholesale operation and internet based sales

• Established 25 years
• Shops in London, Birmingham & Manchester
• Turnover £2,249,385 (2010)
• EBITDA averaging £269,500 per annum over the last 2 years
• Leasehold £849,950 + stock at valuation
• REF: 1056DA

Business summary

This company has developed an excellent reputation within the gay community for retail and internet based sales of adult products. Trading from 4 shops in major population hubs in the uk, the company also has a wholesale division supplying a variety of smaller retailers and traders. Good relationships with manufacturers and suppliers allow a very wide range of products to be sourced at competitive prices and supplied to specific customer requirements. The company also has its own branded range of leather, metal and rubber products.

Our client has enjoyed a trading history spanning the last 25 years and has a very well known name within the market. During this period, the business has generated significant levels of turnover which now exceed £2.25 million annually. Focus in the past two years by the vendors, and their management team, have ensured a return to profitability with a consistently high ebitda figure ensuring excellent earnings for a new buyer. The business benefits from a stable, well qualified staff, with generally low rates of turnover.

Over the last 10 years the company has consolidated its place within the market place, encompassing new trends and ensuring legislative requirements are met. Overall, the market for adult gay products is considered to be stable in economic terms, and is comprised of a relatively small number of buyers, but with a high repeat rate.

The company would be an ideal purchase for a similarly sized or larger corporate either with a good knowledge of the adult industry, or of internet marketing, or possibly a manufacturer/supplier with an acquisitive growth strategy. Such a purchase would give access to mature repeat customer base spanning retail, internet and wholesale elements, and a company with solid financials. There is also a management structure in place. The business could also appeal to a rival firm, or alternatively, a company operating within the wider gay entertainment/hospitality industry, seeking additional markets and product range.


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Disclaimer: viewing is essential to fully appreciate this business and strictly by appointment only through the agents. N/b: all negotiations must be conducted through advent business sales. These details do not constitute part of an offer or contract and properties are offered subject to being sold, let or withdrawn without notice at any time and without liability for any expenses incurred by applicants. All statements and descriptions are made without responsibility or warranty by us, vendors or lessors. Intending purchasers must check for themselves (misrepresentation act 1967).

An Energy Performance Certificate will be made available upon request of further details where one is required for the business premises

Property information

Property:

Leasehold

Business Operation

Expansion potential:

The company has two shops located in London, which is very much the central market within the UK. This presence within the capital is considered particularly important, and the head office function is based here. The “pink pound” within the UK is massive, and much of this is expended on hospitality; there would be synergies for the right buyer in combining the existing operation with an entertainment related business operation.

Internet based sales are potentially international in nature and there has been a trend within the market place away from shop and internet based DVD sales to live video streaming through the websites where there is considerable growth potential by offering additional content.

Business development activity overall has typically relied upon a biannual mail order catalogue which causes a spike in sales when released. Additional focus upon business development activity more generally should provide additional revenue streams into the business.

Much expenditure by the vendors over the last two years has been exceptional and focused on ensuring that the right financial and management systems are in place. These improvements have very much laid the foundation for a successful ongoing business.

A leading website has been developed plus 3 white label sites