London Retail And Installation Of Quality Fireplaces For Sale

Business description

Retail and Installation of Quality Fireplaces & Associated Products

This well-known and respected retailer of quality fireplaces originally began trading in 1985. The present father and son owners took over the operation in 2001 and over the last decade have expanded the operation to make it one of the leading suppliers and installers of high-quality fireplaces in London and the South East. They doubled the size of the shop by leasing the adjacent unit early on, which now gives the business an impressive double fronted location with a strong high-street presence. The extended premises also allows for a wide range of stock to be displayed on-site and assists in customer viewings, decisions and the healthy levels of revenue achieved year to year. Alongside main shop unit the vendors also lease warehousing and storage locally. This allows for a huge range of items and fittings to be carried, which results in fast turnaround for most orders, and a timely installation process.

In 2003, the owners of the business decided to bring all gas-fitting services in-house, this greatly improved the levels of customer service, reduced recall visits and again added to the overall profitability and reputation of the business. The business supplies bespoke fireplaces from an extensive range of fires, surrounds and hearths. With over 20 suppliers internationally, the shop tends to focus on the higher quality end of the market, with typical orders ranging from around £500 to £5,000. The products on offer tend to appeal to the more discerning customer, and the business enjoys minimal direct competition from large DIY retails which have moved more towards the lower end of the market. The business also has a reputation for supplying stunning contemporary fireplaces alongside the more traditional items.

Currently around 90% of customers are private individuals, some of whom return over the years when developing their properties, there is also a sizeable base of repeat trade customers such as property developers, architects, building contractors and interior designers who buy direct when completing projects or recommend the shop to their clients.

Equipment:

Alongside the extensive shop fixtures and fittings the business has all that one would expect to run a busy shop of this size including cash register, credit card payment machine and IVR Telephone system. There is a company server in the back office, with three desktop PC’s and computerised financial accounts on ‘Quickbooks’. There are 3 vehicles owned and operated by the firm comprising of a ‘Y’ reg Transit High-top, ‘02’ Vivaro and ‘04’ Isuzu Rodeo, all of which are sign written with the company name and logos.

Customer Service:

A business in the retail sector can only succeed and expand as this company has done so well over the past decade by offering customer service which receives recommendation and referral. By taking care of all the customer needs and requirements from the moment they pick-up the phone or enter the store until the skilled installers leave for the last time with a stunning fireplace finished to the highest exacting standards, there is a constant attention to detail. All requests are dealt with in a timely manner, and should any issues arise, they are rapidly dealt with.

Key Strengths:

The location in affluent South West London is obviously a great asset to the business, with a large population base within the catchment area. Also there is minimal direct competition for the business at the higher end of the market. The business is streamlined and easy to operate from a owners point of view, and with the skilled and loyal team of staff in place allows for a straight forward transition to new ownership. The relations with numerous suppliers internationally are strong, resulting in excellent service and delivery times which can be passed on to customers. There is also the stability to future earnings offered by the high levels of recommendation, referral and on-going trade accounts.

Financial profile:

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

For the last financial year the Turnover was circa £550,000, with Gross Profit circa £308,000 and a Net Profit circa £79,000. Stock levels are usually around the £60,000 level.

Property information

Property:

Leasehold

Lease terms:

A 15 year lease was signed in 2001 at a combined rental of £18,000 per annum, with business rates payable of approximately £3,000.

Location:

The adjoined shop units are split into 3 showrooms, with extensive window displays. A 15 year lease was signed in 2001 at a combined rental of £18,000 per annum, with business rates payable of approximately £3,000. Overall the ground floor occupies around 800 sq ft, with a further basement area used for storing stock. The business also lease a nearby warehouse unit on a rolling flexible lease for around £5,100 per annum, with business rates of approximately £900. There is a small office unit, currently on a 3 year lease, which occupies around 130 sq ft, and has 2 parking spaces. The annual rent is circa £3,000, plus business rates of around £350.

Business Operation

Expansion potential:

There are still excellent opportunities for future growth. The back-office systems could be upgraded to include a fully integrated customer relationship management system, ideally integrated with real-time stock control and the website. This could assist in the business offering a full e-commerce solution, and expand the client base and turnover greatly without any increase in direct overheads. The current owners believe that the brand could easily be expanded into neighbouring regions in London and the South-East with the potential to open new stores under the same well known and respected trade name. There is also a belief that by increasing the marketing to trade customers and building relations with professionals such as architects, specifiers and interior designers, the overall earnings could be easily increased.

Competition / Market:

The business has a comprehensive website, which has been search engine optimised and is promoted on numerous directories such as Yell.com and Touch local as well as via Google ‘ad-words’. The website details around 400 products, and receives approximately 40 brochure requests per week. There has been some advertising in the local press. The business receives a huge range of supplier brochures and catalogues which are held in store, and can be given or sent out to potential customers.

Reasons for selling:

The vendor has other business interests in hospitality which he finds is taking-up a lot of his time, and his father is looking to enjoy a well earned retirement, so it is now timely to hand over the business to new ownership.

Trading hours:

Monday – Saturday: 9:30 am – 6:00 pm
Sunday: 11:00 am – 4:00 pm during peak winter months.

Employees:

The business is operated by the vendor, who is responsible for overall day-today operations and business administration. His father a qualified ‘Gas Safe’ engineer works part-time with the firm in an advisory role. In support full-time is a Sales Director, Receptionist and 3 fireplace installers. Each member of staff has been with the business from 5-8 years, and it is believed they would consider staying with the company under new ownership. The business also employs the vendors wife as a part-time book-keeper.

Years established:

1985

Other information

Support & training:

The vendor is agreeable to a period of handover, and with the key staff in-place, the transition is expected to be straight forward.