Domestic And Commercial Removals Storage And Self Storage For Sale

Business description

Domestic and Commercial Removals, Storage and Self Storage facility

Established in 1984, originally purely as a removals company, this business, based in West Sussex has expanded its interests to offer in addition a storage and self storage facility.

On the removals side this business has rapidly grown into one of the leading removal companies in the area, operating in both the domestic and commercial markets, dealing with light, office and house removals primarily within a thirty mile radius of its Head Office based on the south coast. This company is a full service operator offering a complete packing, relocation solution for householders and businesses alike. This is a very diverse and adaptable company, offering great technical support, logistics, scheduling, planning and consultation and can deal with every element of a removal, including heavy furniture, machinery and oversize items with its range of vehicles and suitable lifting equipment, ensuring a smooth and efficient removal. Every care is taken to ensure property arrives at the new location in the condition it left the last and for customers unable or unwilling to take all of their possessions to their new location the business offers a safe and secure storage facility using a freehold warehouse acquired by the business a number of years ago.

With an increasing requirement from customers to store their possessions on a temporary basis as a result of their move the business acquired a freehold warehouse which is almost consistently full launching fully into the self storage sector by acquiring a further unit of approximately 4,000 square feet with additional space created via the installation of a mezzanine floor. Fitted out throughout with varying sized storage rooms the unit provides convenient, flexible and hassle free storage for the local domestic and commercial market. Clean, dry and secure with easy access, over 80 rooms are available in all, ranging from a 15 sq ft storage ‘box’ up to large storage rooms of the size of a small garage. Ample car parking on site ensures easy access for loading and unloading. The length of each customer's stay varies with some having occupied their units long-term whilst others come and go on a short-term basis. The minimum period available is one calendar month and all customers are required to give two week’s notice of their intention to vacate their unit. Any goods can be stored, such as furniture, filing or unused equipment right through to the excess stock of smaller businesses.

This business is justifiably proud of its reputation for giving great service and good value. Removals or storage, the business provides a comprehensive, convenient and competitive service, ensuring that customers return time after time. Staff are very professional, trained, highly skilled and dedicated to customer care, offering an unrivalled service. Its varied range of sign written, fleet caters for most needs of transportation, local and national, full and part load distribution, ensuring maximum coverage and prompt, reliable delivery. And whether it’s just a few articles, an entire office or home this business offers short and long term containerised storage options offering easy and direct access to a customer’s box inside the business’s extensive warehousing.

Turnover for the financial year ending December 2009 was approximately £195,000 generating a gross profit of £117,500. With a pre-tax net operating profit of almost £40,000 after Director’s remunerations and depreciation, this represents an excellent opportunity to acquire a domestic and commercial removals and storage business with freehold property, a long established track record, excellent growth and expansion prospects and a strong reputation, enjoyed among clients and competitors alike.

Customer service:

This business prides itself on its professionalism in removals and the operation of its storage facilities. This company realises that the customers it serves are its best adverts and maintains a high standard of service at all times.

Key strengths:

Operating within the removals sector for over twenty five years this is a very well established business with an excellent reputation and the very best ‘name’ around. The success of the business is based on this heritage coupled with having the best transport, excellent storage facilities and the professionalism, experience and dedication of its staff. The workforce pride themselves on their unsurpassed customer care, reliability and flexibility, making this business the number one choice in the West Sussex area. Competitive without being the cheapest, the business has established an excellent reputation for exceeding expectations and meeting client's individual needs, ensuring that all commitments that are undertaken and promised are honoured.

The business is geographically well situated on the West Sussex coast with numerous towns and villages just a few miles away and in an area packed with a high incidence of very sizeable properties. Close to major motorways this business has easy access to London, across the South East, the rest of the UK and Europe via the major air and seaports.

The storage facilities – whether arising from removals activities or self store have a core loyal customer base, with many storage customers long term. Average occupancy levels in self storage are consistently in the region of 90% and with payments predominantly made by BACS and Direct Debit, this represents excellent predictable income and a strong steady cashflow. The income stream from this facility alone ensures the running costs are met for the overall operation whilst still leaving a contribution to the bottom line, ensuring the business has no need to chase unprofitable moves – and can cherry pick its jobs.

All staff are highly skilled and have undergone in-house training in correct lifting methods, specialist packing techniques and the correct methods of loading removal vehicles. With moving house amongst the most stressful occasions in life the staff of this company realise that politeness, helpfulness and courtesy are imperative at all times.

Key opportunities

This is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's services, a new owner contributing fresh ideas will have every advantage of building on an excellent platform.

This business maintains an extensive base of satisfied customers, who appreciate the company's top quality service. There are many excellent avenues for growth including the possibility of adding additional self storage capacity at its current unit. There is also no doubt that a more aggressive approach to sales and marketing, particularly aimed at the commercial sector – both storage and removals would impact upon turnover and profitability considerably.

Financial information

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

The business is financially stable and enjoys a strong order book including a considerable on-going income stream from storage.

Turnover for the financial year ending December 2009 was approximately £195,000 generating a gross profit of £117,500 and a pre-tax net operating profit of £38,400 after Directors remunerations, pension contributions, depreciation, loan interest payments etc.

The Asking Price of £550,000 is for a sale of the shares in the business based on a Balance Sheet value of £345,000 to more fairly reflect the current value of the freehold properties and includes some outstanding mortgage payments on the properties.

Property information

Property:

Freehold

Location:

The business operates from two separate warehouse facilities approximately ten miles apart.

The self storage business is located on a small business park on the outskirts of a busy commercial centre on the West Sussex coast with easy access for its customers and ample parking. The premises are approximately 4,000 square feet with additional capacity afforded from a mezzanine floor which provides in excess of 80 secure units for rent of between 15 square feet and 165 square feet. Security is by way of CCTV and a fully equipped Redcare alarm system. The building is also equipped with sensor lighting.

The premises are freehold and have recently conservatively estimated to be valued in the region of £300,000. A further £70,000 was has been invested in fitting out the units.

Storage for the removals business is managed within a modern well maintained unit situated in a residential area. The premises are approximately 3,200 square feet in all including a small mezzanine floor used for small storage jobs.

Theses premises have recently been conservatively valued at £230,000. Situated as they are in a residential area it has been suggested they might be subject to a residential development opportunity.

Other information

Competition / Market:

For the removals side of the business, the company has built up an excellent advertising base and has used a variety of methods to promote its services including all of the local directories. It has also established an excellent network of local estate agents gaining from relationships built up over twenty five years. Awareness of its services is further driven by its sign written vehicles. The business also has a well designed and informative website covering both sides of the business that performs very well in all of the major search engines for all appropriate search terms When there is sufficient spare capacity on the self storage side to justify it, the business augments its presence in the local directories with display ads in the local press. By far the most effective form of marketing for the business however is the high levels of repeat business and string word of mouth recommendation the business enjoys testimony to the high levels of customer satisfaction the business engenders.

Support & training:

The owner will provide full business familiarisation, training and handover to ensure a smooth transfer of the business, however with a Manager in position on the self storage side of the business, it is anticipated that the requirement will be relatively brief.

Reasons for selling:

Having been involved in the sector for over twenty five years the current Owner feels the time is right to pass it on to new Owners to build upon the excellent foundations already laid.