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| Financials |
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| Asking price: | £125,000 | | Sales revenue: | £110,000 |
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| Business description |
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Independent Motorcycle Centre
Sales, Hire, and Rider Training Centre
The present owners established the business to satisfy the motorcycling requirements of the local community, and to provide a motorbike hire service.
The operation carries a small range of used motorbikes for retail and these sit in the £2000 to £3000 price range. They also carry around eighteen bikes that are available for hire. The machines vary in size from 125cc to 1600cc and cover a range of designs including sports bikes, cruisers and tourers. They are predominantly hired by tourists planning to visit the region and wish to explore the area on two wheels .
The business also operates an innovative club membership scheme for local riders who pay an annual fee in return for a variable number of hire days.
The business is an authorised ATB training school and has the services of four Cardington assessed and registered trainers. The school has eight bikes for the students, these also form part of the hire fleet many people travel from all over Wales to receive the benefit of their experience. The trainers have a consistent pass rate of around ninety percent.
The retail shop is well appointed with excellent displays of a wide range of protective clothing and accessories. They stock helmets by Shoei, AGV, and Shark. Boots are supplied by Sidi, RST, JTS and TCS with clothing coming from RST, Richa, Spada and Wolf to name but a few. There is a strong local customer base who have come to rely on the sound advice and friendly service offered by the team
The workshop and MOT bay is permanently busy and the workload is controlled at a level that can be handled by one part time technician. The volume of business could easily be doubled with additional staff and a little local advertising. The workshop itself is well appointed with a bike ramp, tyre changing equipment and a computerized balancing machine.
Financial Information:
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.
The business is well established and has a steady turnover of around £110,000. It does not presently show a profit. A new owner able to carry additional stock and advertise the business to a broader market would quickly see a return on their investment. |
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| General information |
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| Employees: | Two directors One part time workshop manager / technician One part time shop assistant Five part time instructors |
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| Property |
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| Leasehold | | Lease terms: The units are leased at an annual premium of £15,600. The lease expires in October 2009. The owners are keen to renew the facility. |
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| Location |
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| Mid Wales: The business occupies three adjacent industrial units on a small business park. Each unit is interlinked and provides natural divisions between the three departments (Service, Retail Accessories and Sales and Hire). The units are leased at an annual premium of £15,600. The lease expires in October 2009. The owners are keen to renew the facility. |
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| Expansion potential |
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| The business has a broad range of services and a great customer catchment area being the only company of it’s type in the region.
Sales of used bikes are limited only by the small amount of used stock the company carries and an increase in that alone would bring in new clients.
This in turn would have a positive impact on clothing and accessory sales with customers returning for scheduled services, MOT’s and accessory requirements. The provision of an additional technician would enable the workshop to maximise the square footage available to it and generate significant additional revenue.
A structured advertising campaign across a broader base of magazines and local journals would enhance the level of bike hire and establishing relationships with schools and colleges would increase the numbers of young bikers wishing to take their bike tests. |
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| Competition / Market |
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| The company has its own website and advertises on trade web sites. They have built up a targeted mailing list from customers, open days and by visiting bike rallies. Bike Magazine also listed the business as their top place to visit. |
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| Support & training |
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| There will be a full and professional handover for a period to be agreed as part of the overall sales negotiation. |
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| Reasons for selling |
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| The present director has additional family and commercial commitments that limit the amount of time they are able to commit to growing the company. |
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