| | Haulage Provider With Freehold Yard And National For Sale | | Seller ref: GP163
Advert ID: 902862 | | | Kent, United Kingdom | |  | | Financials | |  | | Asking price: | £895,000 | | Sales revenue: | £183,800 |
| | | | Business description | | Haulage Provider with Freehold Yard and National and International Operators Licence
The latest version of a business which has evolved from the current Owner’s very successful career, spanning over thirty years in the haulage industry, this business is a leading haulage provider, capable of handling any size of consignment from a single parcel or single pallet to part and full loads. Over the twelve years or so of its current operation this business has built an excellent reputation for reliability and high levels of personal service meeting customer needs around the clock – all at very competitive rates.
Previously run from a freehold yard which is currently let out to other haulage operators, the business is now run from a home office environment using a network of tried and trusted sub contract hauliers. As a result the business can ship anything, anywhere, anytime. Capable of working internationally, the vast majority of this business’s turnover results from shipments within the UK and the Republic of Ireland. With a wealth of experience, the business understands more than any other the importance of marrying the needs of its Clients with the logistics involved in transporting goods and with a firm grasp of what is happening on the ground on a daily basis, knows who to use and how to get goods collected or delivered, quickly and efficiently.
Working with hauliers from across the UK, this business facilitates the transportation of literally millions of pounds worth of goods for several commercial organizations – from small owner operated businesses through to multinationals, including one of the leading sports brands in the world – delivering merchandise to all the major department stores throughout the country. Previous and ongoing clients include a number of brand name manufacturers in industries like paper, clothing, non-ferrous metal, furniture, cement and food. As a result of its many years of operation, this business is particularly adept at picking the right supplier to meet the needs of its customers – providing a reliable driver and haulier certain to get the goods there, securely and on time. Not surprisingly therefore the business can boast an extensive and loyal customer base, with many customers still working with this business since its very first day of operation.
Operating more to meet the lifestyle requirements of the current Owner, rather than profit maximization, the turnover of the business for the financial year ending January 2009 was almost £185,000, generating a gross profit of almost £50,000 and a pre-tax net operating profit of almost £20,000. The real value in the company however lies not only with the Client base this business has served over its many years of operation, but also in the freehold yard conservatively valued in the region of £600,000, together with the National and International Operators’ Licence it holds. As such the business represents an excellent opportunity to acquire a very well established haulage provider and should appeal to an existing operator looking to add to their capabilities or a new entrant to the industry looking to establish themselves in a very active business sector in an ideal location.
Key strengths:
This business prides itself on providing cost effective, reliable and safe solutions to all of its customers’ transport and haulage requirements and recognises there is much more to transportation than just moving cargo. Through its longstanding experience, it has the necessary expertise, skill and knowledge to deal with the nature and dynamics of freight transportation from procurement and pick-up of shipments to delivery. This combined with a highly personalized, friendly service enables this business to boast an extensive, loyal and regular customer base.
This business has been carefully managed throughout its many years of successful operation, taking full advantage of its excellent network of industry contacts to link in with loads already planned with ‘tried and tested’ subcontractors. With lower than average overheads and operating costs, this business can operate flexible pricing policies – reflecting an awareness of its Clients’ particular circumstances and the loads that may already have been planned, whilst still achieving very healthy margins.
By far the greatest asset of the business is its haulage yard with a National and International Operators Licence for 12 vehicles and 10 trailers. With on-site workshop facilities – close to the docks at Dover, within 20 minutes of the Channel Tunnel at Ashford and the M25, the yard is ideally located for any operator looking to secure a base that would allow them easy access to and from the European freight market.
Key opportunities:
There is an outstanding opportunity to build on the existing services and customer base of this business. With a strong demand for its services combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in resources, particularly in the areas of sales and marketing will have every advantage of building on an excellent platform.
The current operation of this business, on its own, represents an excellent bolt-on opportunity for an existing haulage company. There is however further scope to leverage the excellent reputation this business has within its sector for reliability to increase its trading base beyond its current customer list. Having not felt the need for extensive advertising and marketing to date, targeted investment in this area would help increase its turnover and profitability.
By acquiring the yard and the Operators Licence there is the opportunity for any purchaser to build this business back up to a fully fledged haulage business – and by simply acquiring the business with the Operators Licence it could also operate as a fully blown haulier even using short term hire vehicles.
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.
Turnover for the financial year ending January 2009 was approximately £184,000, generating gross profits of £49,500 and pre-tax net operating profits of £18,200.
The Asking Price of £895,000 is for a sale of the shares in the Business to include the freehold of the site together with the National and International Operators Licence. |
| | | General information | | | Employees: | The Owner, working approximately two to three hours per day, is responsible for the day-to-day management of the business. |
| | | Property | | | | | Location | | Previously operating from its own haulage yard, the business currently operates from a home office environment.
The yard itself, which is freehold and is included within the Asking Price, is approximately 0.7 of an acre including an on-site Workshop. Comprising steel cladding and brick, the Workshop is approximately 1,250 square feet with eaves to 16 feet and a 14 foot shutter door. The site benefits from 24 hour a day access enabling day and night running.
The yard is currently rented out on the basis of a Full Repairing Lease at an annual rent of £38,400 per annum but is soon due for re-negotiation. The current tenants pay the Rates. Situated on a large commercial/industrial area and close to the A2 motorway, the site is within easy reach of Dover and the Channel Tunnel at Ashford in Kent and is very close to some very recent commercial development, which may be a possibility some time in the future.
The freehold of the site has been conservatively valued at £600,000. |
| | | Competition / Market | | | Run mainly as a lifestyle business by its current Owner there is very limited investment in marketing and advertising with the vast majority of turnover arising from a broad spectrum of ‘regular’ Clients, boosted by the occasional Google adwords campaign. The business has a web presence, which has just been updated.
The business benefits most however from the most cost effective form of marketing, word of mouth recommendation, testimony to the excellent reputation this business has throughout its industry. |
| | | Support & training | | | The owner will provide full business familiarization, training and handover for the new owners to ensure a smooth transfer of the business. |
| | | Reasons for selling | | | This is a genuine retirement sale. |
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