Plant & Commercial Motor Factor In Greater Manchester For Sale

Business description

This well established and reputable business was set up some 30 years ago and in that time has grown into a highly professional and respected supply company providing a broad range of motor spares and components to the commercial vehicle trade within the North West region.

The core market this business serves is the commercial vehicle aftermarket but it also supplies parts on a smaller scale to the plant, industrial and hydraulics aftermarket. The company has circa 150 regular customers within a 25 mile radius of its location. These include very large blue chip clients as well as small local organisations.

The company holds good levels of stock and has modern well equipped premises where it operates from. The main site is rented and the business also has additional long leasehold (58 years remaining)storage units(circa £200,000), one of which it currently rents out, the other is used to hold its own stock. The business owns the long leasehold building and this is included within the asking price

The vendor would ideally like to sell the business with the long leasehold buildings but may consider retaining the building if a new owner did not require it.

Equipment:

The company has a good level of racking to store stock as well as hydraulic hose-making equipment and cutters that allows it to produce hose assemblies in-house. There are two leased delivery vehicles. The company utilises Sage accounting software to run the business. The company also has two external storage containers. All stock and equipment is included within the sales price.

Customer Service:

The business considers simply that satisfied customers come back and on this basis has maintained levels of product and service quality intended to best guarantee this satisfaction. This is done by not only providing leading brands at competitive prices but by having stock available to dispatch to customers as and when required. The company also has the market knowledge and expertise to source less common items if so required. Because of this it enjoys very high levels of repeat business and customer retention levels.

Financial profile:

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

Turnover for the last financial year circa £383,000. Resultant Gross Profits circa £163,000. Net profits available to the owner circa £40,000. Stock is circa £50,000. Long leasehold premises are owned by the business and value is circa £200,000. Stock and this building included within the asking price.

Property information

Property:

Leasehold

Lease terms:

It is long leasehold (58 years remaining). Business pays £199 rent p.a. Property value is circa £200,000. The business currently rents one unit out and the other is used for its own storage.

Location:

The business has two sites one being the main trading centre, the other being a storage site. The main trading premises are modern with room for expansion. They are situated on a small industrial estate with good access. The site is rented. Current rent is circa £6000 p.a. (inc all utilities and waster disposal). Rates are circa £1100 p.a. Site is circa 1800 square feet and includes trade counter, offices, warehouse and mezzanine. The business also has two storage containers outside.

The second site is owned by the business. It comprises two storage units with total floor space circa 5000 square feet situated on a third of an acre site with ample room for further expansion. It is long leasehold (58 years remaining). Business pays £199 rent p.a. Property value is circa £200,000. The business currently rents one unit out and the other is used for its own storage.

Other information

Expansion potential:

The company has access to enhanced further product ranges and could easily expand its product offering to incorporate more electrics, pneumatic fittings and filters. The current infrastructure could certainly accommodate this. A more proactive approach to e-commerce would also improve performance. To date the business does not have a website or any form of e-commerce.

Competition / Market:

The business enjoys high levels of repeat business, word of mouth recommendations and referrals but could benefit from a more strategic medium/long term sales and marketing campaign. It has no internet presence to date but does undertake some direct mailshot marketing on a periodic basis.

Support & training:

The vendor is more than happy to provide a comprehensive handover period.

Reasons for selling:

The owner is planning his exit strategy.

Trading hours:

Monday – Friday: 0800-1700
Saturday 0900-1200