Petersfield Hampshire Successful Cycle Shops Price Reduced For Sale

Business description

The particular highlights of the business are:
- The owner may be prepared to accept staggered payments for the business, enabling the buyer to pay from profits although a lump sum sale would be more favorably considered.
- Ideally located concern offering excellent lifestyle.
- A well established business.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £950,000 with a net profit of £70,000. (See financial summary below). This is very impressive considering the credit crunch.
- A business with great potential which has not been exploited because the owner now wishes to pursue other family interests.
- An easily run operation.
- Good loyal well trained specialist staff.

History
We are delighted to place onto the market this small chain of cycle retailers which has been established since 1990. The business has been in the hands of the current owner since 1990 and he now wishes to sell due to family interests.

Services
This very good business opportunity provides cycles for retail and accessories.

Staffing
The concern employs 6 staff. 3 are full time and 3 are part time. The wages bill is £65,000 approx. All staff would stay on after a sale.

Owners Role
The owners’ role is very hands on and he works full time.

Marketing
The owner markets the business in the yellow pages and with local schools.

Competition
As far as competition is concerned there are other local cycle shops but this business is the premium business of its kind in the area.

Market
The client base consists of locals.

Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• With the introduction of a website and e-commerce.
• Use of client base.
• Pro active selling.
• Commercial market.
• Extended opening hours.

Training and Handover
The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The Owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Financial Details
The present turnover is £950,000 per annum with a gross profit of 23% and a net profit of £70,000. The wages are £65,000 PA. The present value of the stock is £190,000 and the fixtures fittings and equipment are worth £20,000.
In 2008, the turnover was £750,000. The potential turnover of the business within the next 2 years is forecast to reach £1.5 MILLION given the changes that are required to be made to the business. Full financial disclosure is available on request after viewings and the signing of a confidentiality agreement.
Please note we do not guarantee the accuracy of these figures which are in many cases estimated and are not verified. Please do not rely on the accuracy of these figures and seek professional help before making any offers. Broker will not be held liable for any inaccuracies in these figures or any other statements contained in relation to this business.

Property information

Property:

Leasehold

Lease terms:

The lease for Four marks is 6 years with a rental of £15,000 pa. The Petersfield lease has 5 years left with a rental of £30,000 pa.

Leasehold rent:

£15,000 per annum

Location:

This business has 2 retail outlets. The first one is situated in Four Marks and is just off the main arterial road and is part of an established parade of businesses. The second main outlet is in Steep which is just outside Petersfield.

Premises details:

Four marks consist of a large double fronted shop unit which is 30 ft x 45 ft. It is well equipped and presented. There are staff facilities to the rear.
Steep is a very large unit which has a large showroom and workshop. There are offices attached to the building which are let out.

Other information

Expansion potential:

The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• With the introduction of a website and e-commerce.
• Use of client base.
• Pro active selling.
• Commercial market.
• Extended opening hours.

Competition / Market:

As far as competition is concerned there are other local cycle shops but this business is the premium business of its kind in the area.

Support & training:

The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The Owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Reasons for selling:

now wishes to sell due to family interests.

Trading hours:

Tuesday to Saturday: 9am to 5.30pm

Furniture / Fixtures value:

£20,000 (included in the asking price)

Inventory / Stock value:

£190,000