East Sussex Retail Gallery Specialising In Contemporary Art For Sale

Business description

Opened approximately ten years ago, this is a very well established, well-respected gallery specialising in Contemporary art. It represents a great number of local, national and international artists, spanning both up and coming talent and established, but not necessarily well known, figures in the art world.

Focussing on mainly abstract pieces, all of which are originals, at affordable prices, this is a well-organised business featuring artists that are successful and works of art that sell.

Since opening, the gallery has performed consistently well, enjoying steady growth in turnover and profitability, not to mention stature and reputation, having mounted very many impressive solo and group exhibitions, over its many years of successful operation. Such is the gallery’s reputation that it is constantly approached by artists hoping to get their art represented.

Large, contemporary pieces, not easily found elsewhere, from regular artists who often have a keen following of collectors are the staple diet of this business, with prices ranging from as little as £150 for the smaller pieces through to £3,500 for the larger pieces from more established artists. Almost all pieces are carried on a ‘sale or return’ basis with the gallery receiving a sizeable commission on sale.

In what is a relatively short period of time this gallery has established an excellent reputation amongst artists and Clients alike. With turnover for the financial year ending August 2010 in excess of £240,000, generating gross profits of £124,000 and pre-tax net operating profits of £23,000 after small Director’ remunerations, this represents an excellent opportunity to acquire a very well established, profitable retail gallery specialising in contemporary art, with a growing reputation and an increasingly loyal base of artists and Clients.

Key opportunities:

There are many excellent avenues for growth, building on the considerable interest there is currently for contemporary art. It is currently enjoying a great upsurge in popularity.

One of the very enjoyable aspects of owning a gallery is identifying and developing new talent. Huge potential exists amongst artists looking for galleries, both those who have just left art school and those who have shown successfully locally but are looking for a wider audience for their art.

Currently only a small proportion of sales arise from the Corporate sector. There is certainly scope to increase this significantly with the use of additional marketing and advertising resources. Similarly although the gallery has a web site which showcases works available, the current owner feels that much more could be made of the internet and electronic marketing and that only a fraction of its potential is being harnessed to market and promote the gallery.

Equally, more could be made of PR and advertising opportunities, which abound in the art world, as well as gallery exhibitions which could be held more frequently that at present with the availability of additional, dedicated resources.

Financial profile:

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.

Turnover for the financial year ending August 2010 was slightly in excess of £240,000 generating gross profits of £125,000 and pre-tax net operating profits of £23,300 after Director’s remunerations of £5,600.

The Asking Price of £75,000 is for a sale of the shares in the Limited company based on a Balance Sheet of £4,000. There is a £25,000 premium on the lease which will be required to be paid in addition to the Asking Price for the business.

Property information

Property:

Leasehold

Lease terms:

Rent is currently £14,000 per annum. Rates are slightly in excess of £8,800 per annum.

Location:

The gallery is located in a prominent location in Brighton. The gallery enjoys high levels of passing traffic, footfall and customer awareness. Leasehold, the Ground Floor premises are approximately 335 square feet.

There are approximately eight years remaining on the current lease which commands a premium of £25,000 which was paid by the current Owner of the business and is in addition to the Asking Price. Rent is currently £14,000 per annum. Rates are slightly in excess of £8,800 per annum.

Other information

Competition / Market:

The basis of most marketing for the gallery is its database of prospective and existing Clients comprising Corporate buyers, private collectors, Art Consultants and Interior designers. The gallery hosts a number of Exhibitions throughout the year and attends Art Fairs around the country. The business has an attractively designed and easy to navigate web-site to maximise awareness, is very successful in securing PR and advertises regularly in local lifestyle oriented glossy magazines, particularly to promote Exhibitions. By far the most effective form of marketing for the business however is the strong word of mouth recommendations and referrals it receives from very satisfied Clients, testimony to the high level of regard the gallery has built within the industry and its excellent reputation for good quality contemporary art at affordable prices.

Support & training:

The owner will provide full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners.

Reasons for selling:

The current Owner is considering emigrating to the USA.

Trading hours:

The gallery currently opens seven days per week – between 10.00 am and 6.00 pm, Monday to Saturday and between 11.00 am and 5.00 pm on Sundays.