Design And Supply Of Sage Compatible Business Stationery For Sale

Business description

BUSINESS SUMMARY

The Company has established an excellent reputation in the design and sale of compatible stationery for use with Sage, Pegasus and IRIS software systems. In addition to this core business, which accounts for around 85% of turnover, bespoke work is undertaken to specify and supply continuous and cut-sheet business forms to individual customer requirements. The printing of forms is contracted out to around 10 major suppliers.

Our client has enjoyed a successful trading history spanning the last 18 years. During this period, the business has generated significant and consistent profits, enjoying the advantages of very low overheads. The company operates within the UK and the Republic of Ireland selling through mail order and internet channels. Over the years a large customer base has been developed, and this now extends to around 4,500 businesses. Turnover has grown by 11% annually over the last two years with forecast growth at the same 11% level for 2011. The business has a positive cashflow and 2011 projections forecast increased turnover and profitability.

Over the last 5 years the company has both consolidated its place within the market place and extended its reach to the new Irish market. Overall, the market for specialist stationery is mature and stable, but with many organizations moving the purchase of consumable items away from the original software providers to lower cost alternatives.

The company would be an ideal purchase for a similarly sized or larger corporate with a good knowledge of the industry and with an acquisitive growth strategy. Such a purchase would give access to a large stock of compatible forms along with a mature repeat customer base. The business could also appeal to a rival firm, or alternatively, a company operating within the wider office supply industry, seeking additional products and customers.

CLIENTS AND MARKETS

The Company has a large number of customers, with around 6,500 contacts on the database. Around 4,500 of these are active, with orders being placed during the last year. There are approximately 750 account customers. Generally, customers occupy the SME sector of the market, and are involved in all different sectors of the economy. Accountancy firms and payroll bureau offering support services to companies form a significant proportion of overall sales.

The main software suppliers account for around 50% of sales within the consumables market place. There are two larger rival companies with a combined market share of around 25%. Our client has approximately 3% of the market overall; mail order and internet firms account for the remainder. The average order value is around £130.

The market for compatible stationery is large with around 350,000 registered Sage users alone in the UK and a further 55,000 in Ireland. Sage sales account for around 70% of our client’s compatible stationery sales, with Pegasus and IRIS accounting for the remainder in approximately equal shares.


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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).

Property information

Property:

Leasehold

Other information

Expansion potential:

Existing markets are mature and stable with future demand likely to remain solid. Increasing demand is anticipated from existing customers of the software suppliers seeking lower cost alternatives.

Over the past couple of years the vendors have focused closely on the Irish market which has generated additional sales, many through a dedicated website with pricing in Euros.

The national nature of the business affords significant opportunities to expand the market share of the company. Internet based sales have increased significantly. Additional focus on business development activities and marketing the company to a broad range of new potential customers will allow a buyer to exploit the extensive range of individually designed forms within the company portfolio.

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