High Quality Kitchen Bedroom Design And Installation For Sale

Business description

High quality kitchen and bedroom design and installation - operating in both the contract and retail sectors

Established over fifteen years ago, this business is one of the leading independent kitchen and bedroom design and installers in its area.

Based on the Hampshire/Dorset border, and conveniently located with easy access to road and rail links, this company services both the trade and domestic sector, operating primarily within a radius of 25 miles of its base – although it is regularly called upon to operate much further afield. It can boast a loyal customer base of privately owned builders and developers and a steady retail order book that stretches months ahead at any one time. Specialising in design and installation of built in kitchen and bedrooms, this business also supplies solus appliances, together with other kitchen components, such as worktops on a supply only basis, or, indeed supply only. A large proportion of the company’s turnover however arises through links to construction companies and property developers operating in the residential property market. The business also operates e-commerce retail channels for the sale of sinks, taps, appliances and related products.

Mainly targeting the mid market sector, this business is very much a ‘one stop shop’ providing a full design, supply and installation service and if required, the management of minor structural changes necessary in conjunction with a refitting assignment, working with a number of tried and tested sub contractors. Job values on the retail side average between £13k and £30k with trade contracts ranging from £20k at the bottom end but can be as high as £500k.On average the business would expect to complete approximately 200 kitchens per annum, with typically three per week being made for trade customers - with a further twenty to thirty bedrooms completed per annum. Kitchens are purchased from leading British manufacturers which include Ultima, XY Made and Unitech, as well as Rot Punckt, a German imported kitchen range. The Company has direct buying accounts with the Electrolux Group, Bosch, Hotpoint/Indesit, and is currently negotiating with the Miele Appliance Company.

The business has an excellent reputation for high levels of workmanship – with its own directly employed fitting teams. And post sale the same high levels of service are maintained with any ‘snagging’ issues dealt with promptly and efficiently. To manage the very high levels of activity and to support its excellent sales and management team, the business uses the Planit design package and the SMART management system. Used as very effective and efficient design and management tools, these technologies have enabled the company to absorb significantly increased levels of business, without a corresponding increase in support staff, and, hence, overheads.

This is a very well managed, fitted kitchen and bedroom business which combines the attributes of good growth, steady profits and a loyal, high quality customer base. Turnover for the financial year ending March 2011 was slightly in excess of £1.03m, generating gross profits of almost £405,000 and a pre-tax net operating profit of approximately £96,000. With a forward order book stretching many months ahead, this business represents an excellent acquisition opportunity for a new entrant to establish themselves within the sector or for an existing operator looking for rapid expansion by acquiring one of the top one hundred largest kitchen fitting operations in the UK.

Key strengths:

This is a very well managed business – built upon the Owner’s extensive experience of working within the industry, supported by a highly motivated and committed team. It has been expertly structured to produce steady growth without compromising on service quality, which has been a key pillar in the company’s strategy from the outset. It has an excellent record of profitability and high levels of customer satisfaction.

Having been in operation for over fifteen years it is well established with a loyal customer base of predominantly local builders and developers and a good on-going order book in the retail sector – all attracted by the business’s enviable reputation for high quality products, first rate service, competitive prices and reliability. Independent, the business is able to source products from any supplier, if required. It has excellent relationships both with its customers, suppliers and manufacturers. This, combined with its ability to deliver a wide range of products and services results in a tailored service that delivers value for money to the customer’s complete satisfaction.

This business is fully equipped with the latest design and operational management software enabling it to deal with far higher levels of activity than would normally be the case with its low overhead.

Key opportunities:

With a strong demand for the products and services of this business, combined with a capacity to increase turnover, a new owner contributing fresh ideas, enthusiasm and motivation will have every advantage of building on an excellent platform.

There is certainly scope for expansion beyond the present area of operations. Efforts to increase the business’s profile, in the Hampshire and Dorset areas and even further afield, leveraging the excellent reputation the business has within the industry, will have a significant impact on turnover and profitability.

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 with excellent positive cash flow and good gross and net profit margins.

Turnover for the financial year ending March 2011 was slightly in excess of £1.03m generating gross profits of almost £405,000 and a pre-tax net operating profit of approximately £96,000. The Asking Price of £295,000 is for a sale of 100% of the shares in the limited company based on a Balance Sheet value of £88,000.

Other information

Competition / Market:

Well established, this business has little need of massive investment in marketing benefiting from high levels of awareness. Awareness is maintained via regular, low cost advertising in local glossy lifestyle magazines and the profile is further enhanced by the Company's five sign written vans. The Company has an attractive, informative and easy to navigate website with a number of associated links. The site performs well in all major search engines for all appropriate search topics. The business is also featured on yell.com and thomsonlocal.com. By far the most effective form of marketing for the business however, is its excellent reputation for quality and service, resulting in strong word of mouth recommendations.

Support & training:

The current owner will provide all necessary training and all relevant contacts to ensure a smooth transfer of the business and continuity of trading, even to the extent of being available on a part-time consultancy basis post sale to make available his considerable knowledge of the area to maximise the on-going potential for further growth.

Reasons for selling:

This is a genuine retirement sale.