Import And Retail Of Ceramic Tiles In Hertfordshire For Sale

Business description

Headline summary


Hertfordshire and Kent

Import and retail of ceramic tiles to the public and trade from two sites


• Established 32 years
• Turnover £1,834,131 (2010)
• EBITDA averaging £197,000 per annum over the last 5 years
• Freehold £1,330,000 or Leasehold £550,000 plus shareholders’ funds of approximately £275,000
• Reference: 1229ME

BUSINESS SUMMARY

This consistently successful company has developed an excellent reputation for the import and resale of ceramic and natural stone tiles servicing the needs of both trade and private customers. Many of the product lines are exclusive, with the strong financial position of the company allowing excellent discounts to be negotiated, along with sole agency deals within the UK. The company has a very substantial number of product lines.

Trading from retail premises located on industrial estates in St Albans, Hertfordshire and Gillingham, Kent, customers are generally drawn from the locality, although a number travel significant distances. The premises are extremely spacious and afford both secure storage for valuable stock and vehicles and a pleasant retail environment for customers.

Our client has enjoyed a successful trading history spanning the last 32 years. During this period, the business has generated very significant and consistent profits. The customer base is extremely well spread and cash flow positive. In financial terms the company is very strong, with a consistently high EBITDA figure averaging £197,000 per annum over the last 5 years, ensuring excellent ongoing earnings for a new buyer. Overall gross profit margin is currently 35%.

Over the last 10 years in particular the company has both consolidated its position within the market place and developed a number of new customers. Overall, the market for tiles is strong and set to expand with customers drawn from the new build sector as well as those refurbishing existing properties.

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 company with solid financials and a reliable staff complement. The business would also appeal to a rival firm, or alternatively, a company operating within a wider trade based or retail sector, such as a bathroom specialist or plumbers’ merchant, seeking additional market penetration or range of services. The trading name is well known and respected within the market place.

SCOPE AND POTENTIAL

The company is located close to the very substantial London market and ideally placed to exploit opportunities arising within the South East generally. Marketing at present is largely limited to the company website along with the production of sales literature and a catalogue for the product inventory. Focus on business development activity generally would easily increase the company’s share of a sizeable market. The website could also be updated to include a fully functioning purchase facility. Web based marketing has been fairly limited to date and a more aggressive look at search engine optimisation could well win additional business.

The business has very much concentrated on the supply of tiles and accessories directly associated with this trade. There are logical crossovers to a number of other trade based areas and a buyer with knowledge of kitchens or bathrooms for example could generate significant synergies. Alternatively, the buyer could explore opportunities within the plumbing industry as this could fit very well with the current business. Cost savings for a buyer combining an existing business operating in one of these markets could be high.

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Property information

Property:

Freehold

Other information

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