Independent Car And Van Hire For Sale

Business description

Self-drive car and van hire on Isle of Wight. New lease available for existing premises or relocatable. Also option to buy valuable 1.2 acre freehold development site. Est. 1978. T/o 2005/06£240k. T/o 2006/07£300k+ Operatiing profit in excess of £200k Fleet ave. 40-45 cars; Commercial fleet ave. 20 vans.

Property information

Property:

Leasehold

Location:

LOCATION

The business currently trades from leasehold premises in Shanklin where the business started in 1978. The Vendors are planning to move to a 1.2 acre plot owned by the Vendors. This valuable and rarely available freehold plot is for sale to the Purchaser if desired. Alternatively, the business may be purchased separately and relocated to a site of the new operator's choosing.
There is evidence to show that the Isle of Wight is seen as an increasingly desirable place to live. The Island's Unitary Development Plan, adopted in May 2001 states that the population of the Isle of Wight is expected to continue increasing from 126,000 in 2006 to 130,000 in 2011. This increase in the population reflects the net in-migration of those wishing to live on the Island. The UDP also shows that there were 3,239 registered businesses on the island. Commercial use planning applications will be approved provided the intended development can be shown to be employment-related further underlining the value of the Vendor's 1.2 acre plot which is located in a commercial zone.

BUSINESS:
This independent, profitable and established self-drive car and commercial vehicle hire business currently operates from leasehold premises in Shanklin, on the Isle of Wight. It represents a superb opportunity to acquire an established and profitable business with excellent growth prospects, ideally positioned on one of the main thoroughfares across the Island.

Opened in 1978, specifically to help meet the self drive hire needs of the Island's resident and tourist population, this business has a number of new vehicles all available in a variety of sizes for long or short term rental. The stock of approximately 60/65 cars and vans is maintained to the very highest standards.

Offering a friendly, reliable service this business prides itself on its reputation and the enviable high levels of customer satisfaction it provides. The continuing success of this business is due to its service, flexibility, efficiency, convenience and value for money.

This business also prides itself on its professionalism and attention to the finer details. Whether a customer is a long term multiple business user, or simply requires a vehicle for pleasure, there is an extensive selection readily available to meet most needs.

Not surprisingly this business has built up a loyal customer base over the 29 years of its operation to date.

Situated as it is, this business enjoys a seasonal uplift in turnover during the summer months - driving up the average daily revenue and 'utilisation' towards the higher end when compared with most operators in the marketplace.

Offering a very attractive, local alternative to the much bigger global brands this is a superb opportunity to acquire an excellent self drive car and van hire location, well positioned for significant on-going growth.

THE CAR FLEET

The car hire fleet averages 40 to 45 providing a wide selection for clients to choose from. The Vendors will be pleased to discuss the wide range of possibilities for the fleet size and also to ensure the right mix of cars to meet the needs of the buyer.

THE COMMERCIAL VEHICLE FLEET

The Commercial Vehicle Fleet provides a choice from approximately 20 vehicles including small and medium sized panel vans, Luton-bodied vans, Tippers and Mini-buses.

BUSINESS PREMISES:
(all sizes are approximate and should be considered 'nominal'.)

Although the business is currently trading from a large Victorian property in Shanklin, the Vendors are in the late stages of relocating the business onto a valuable freehold site. This site, with substantial commercial development potential, may be available for sale by separate negotiation. It enjoys a highly visible and prominent location on one of the main thoroughfares across the island, neighbouring a national supermarket.
Note:
Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.

TENURE:
The balance of a 999 year lease is owned by one of the Vendors who will create a sub-lease on favourable terms to be negotiated with the buyer at an initial annual rent of £15,000.

RATES:
The rateable value of the business premises is £1,450 with rates of £319.72 payable in 2007/08.

NOTE:
This information has been obtained either from the current rate demand for the property, or by telephone from the local authority. The amount payable is the standard rate for the Rateable Value shown. In some circumstances this may vary, and therefore it is recommended that. Potential buyers make their own enquiries through the local authority to check whether the rateable value remains correct and whether the rates payable will be the figure quoted above.

SERVICES:
We understand from the vendor that both electricity and water services are available at the existing site and at the freehold site.

TRADE:
Accounts for the year ended 31 March 2006 was £239,924. Accounts for the year ended 31 March 2007 show turnover in excess of £300,000 (an increase of 25%) with operating profits in excess of £200,000.

Please note that if a business is VAT registered, all figures exclude VAT.

HOURS:
08:30 to 17:30 - 7 days a week

STAFF:
There is one full time member of staff and two part-time.

STOCK:
The vendor informs us that the value of the vehicle stock is approximately £250,000 but the Vendors are prepared to adjust the size and therefore the value of the hire fleet if required.

GUIDE PRICE:
Option 1
Relocated to purchaser's own premises. Business only, the Vendors are seeking £395,000 to include business goodwill plus the value of the vehicle fleet at completion.

Option 2
Operating from existing premises on a new lease. The vendors are seeking £395,000 for the business goodwill, fixtures and fittings plus the value of the vehicle hire fleet on completion.

Option 3
Alternatively, with the business relocated to the new 1.2 acre freehold site. The Vendors are seeking £1,395,000 for the freehold interest, business goodwill, fixtures, fittings, equipment plus the value of the vehicle hire fleet at completion.

LEGAL FEES:
Vendors and Buyers each to meet their own legal costs.

COMMENTS:
This business has consistently maintained a high profile presence in Yellow Pages, yell.com and the BT Phone Book. Local press campaigns are also undertaken together with leafleting and direct mail campaigns. The Owner will provide full business familiarisation, training and handover to ensure a smooth transfer of the business.
Financial information will be made available to seriously interested purchasers after they have formally viewed the business.

LOCAL AUTHORITY:
The Isle of Wight Council: Tel No. ----- ------

INTERNET:
Potential buyers wishing to find out more about the surrounding areas are invited to 'search' under 'SHANKLIN', where numerous sites are available for perusal, or specifically go to 'upmystreet.com' and use the post code 'PO37'.

VIEWING

If you wish to discuss this business opportunity in greater detail, or arrange an appointment, please telephone Nick or Mandy on (023) ---- ----

PLEASE DO NOT MAKE CONTACT
DIRECTLY WITH THE BUSINESS

APPOINTMENT TO VIEW

We will be pleased to make arrangements for you to view the property and business. All viewings must be by appointment, which we will arrange, following a brief discussion as to the potential buyers' financial position and their ability to proceed.
ALL NEGOTIATIONS MUST BE THROUGH THIS OFFICE

ADDITIONAL SERVICES

When purchasing a business (particularly for the first time) there are many important issues to consider and organise. With over 50 years experience of the Business Transfer market, Adams and Co are ideally placed to help purchasers. We are able to arrange competitive finance, insurance and stock-takers, if required. Please telephone for further information.

THE PROPERTY MISDESCRIPTIONS ACT 1991

The information contained herein relating to property matters was checked by Adams and Co, and