Asking price: £225,000

Sales revenue: £1,000,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Superb specialist manufacturer of English Oak reproduction furniture

Founded in 1970 by the current owner, this business is a specialist manufacturer of the finest English Oak reproduction furniture.

This business makes real furniture – built by hand using fine timbers that become even more beautiful with age. Its collection of standard pieces includes many of the classic 16th, 17th & 18th century English Oak designs with many of these traditional pieces adapted for use in contemporary living environments. This business also makes some models in English Cherry, Walnut and Yew wood.

This business’s extensive collection of furniture – chairs, tables, cabinets, occasional pieces and bedroom furniture – includes over 350 designs in all with many variations available to suit customers’ preferences. This business also offers a complete bespoke service with pieces made uniquely to customer specification.

This business has earned an enviable reputation both in the UK and abroad for consistent high quality reproduction pieces, a reputation maintained by its team of highly skilled craftsmen employing many of the original techniques used by English Cabinet Makers. The timber used is air seasoned and then kiln dried. The hand-finished pieces are fully distressed and coloured to simulate the warmth and character of genuine antiques. Many of these superb pieces will undoubtedly become heirlooms of the future – passed down from one generation to another. As well as finished pieces this business also offers furniture that has not been given the ageing treatment, leaving it with just the edges smoothed and then polished or left unpolished as natural wood or with an oiled finish.

Not surprisingly, for a business of this quality its product is in heavy demand not only amongst private individuals but also from architects, specifiers and interior designers buying on behalf of their Clients. As well as direct sales and sales through UK retailers this business can boast a thriving export market for its furniture with Russia, Japan, the US and Scandinavia having excellent networks of stockists.

As an off-shoot of its core trading activity this business also undertakes specialist period architectural joinery, working closely with architects, specifiers and builders on their projects utilising all its traditional skills and timber. It also operates as an oak specialist timber merchant. Fresh sawn, air dried or kiln dried the timber is in heavy demand for many purposes, such as flooring and in particular, beams for architectural joinery and restoration work.

With a turnover circa £1,000,000 generating gross margins of 35% this is a unique opportunity to acquire one of Britain’s best-known English oak reproduction furniture companies – and a name synonymous with quality furniture manufacture throughout the world.

Key strengths:

Built by ‘old fashioned’ craftsmen from the highest quality materials, under a well-known and long established brand name, there will always be a market for the furniture manufactured by this business. This business has established an enviable reputation throughout the world for its workmanship and quality of product. A major attraction to the customers of this business is its large collection of designs, with its extensive customer base – a mixture of repeat and first time customers – sure to find something that will match their requirements.

Whilst the core operation of the business is the manufacture of high quality pieces of furniture, this business has carved for itself additional niche markets – the architectural joinery and the timber merchant operation - which contribute significantly to turnover and profitability as well as providing a hedge against any potential downturn in its core sector. These areas are also of particular importance because it enables the maximum utilization of probably the second largest cost to the business – raw materials – with timber off-cuts from one area of the business frequently being used and sold via another.

Although the growth in the company has been inspired by the Owner it has an extremely well trained and highly effective, loyal workforce – many of whom have been with the organisation for a great number of years.

The current Owner of the business is in the process of consolidating all aspects of the operation to one, all encompassing, freehold site belonging to the Owner of the business. As well as providing efficiencies in costs etc this will ensure the business is easier to manage going forward and affords the current Owner flexibility in negotiating a sale advantageous to all parties.

Key opportunities:

With the highest possible reputation having been established for quality of product and innovation in the design of fine furniture, there is tremendous scope for establishing the brand even more strongly both domestically and internationally giving rise to significant growth and expansion. Although some work has already been done there are excellent opportunities to increase penetration into the UK and internationally.

Consolidating the business onto one site has brought considerable benefits. As well as creating an opportunity to sell direct to the customer from a brand new 1700 square feet, on-site showroom, purchasers are much more ‘involved’ in the manufacturing process not only via information and education but also through the high quality environment in which a high quality product can be demonstrated and sold – from a woodland walk planted some years ago featuring the trees from which the furniture is made through to the state of the art, purpose built manufacturing plant.

Aside from the core furniture business there is also considerable scope to build up the joinery and timber merchant side of the business – and particularly in relation to kitchens - amongst the local carpenters, joiners and other furniture makers, not to mention individuals looking to purchase privately.

Financial Information:

The business is being 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 in recent years has been relatively consistent in the region of £1 million, with gross profits of circa £350,000.

Years established: 1970

Employees: The Owner of the business is responsible for the day-to-day operation of the business supported by one other Director who manages the Woodworking Mill. In all there are thirty-two employees including a highly skilled Cabinet Maker/Draughtsman sharing the furniture design responsibilities with the Owner.

Property: Leasehold

Lease terms
The freehold of the premises belongs to the current Owner of the business who will negotiate a leasehold arrangement of approximately £75,000 per annum, term to be agreed. Rates for the entire site are thought to be approximately £24,000.

Location
South East based. The company operates from a site of approximately one acre in a fairly rural location with good transport links via the major motorway network to all parts of the UK.

The woodworking mill and dry timber storage is approximately 8,000 square feet with a newly, purpose built building of approximately 13,000 square feet housing the Cabinet Workshop, Polishing Shop, Office accommodation, piece part storage and showroom.

The freehold of the premises belongs to the current Owner of the business who will negotiate a leasehold arrangement of approximately £75,000 per annum, term to be agreed. Rates for the entire site are thought to be approximately £24,000.

Competition / Market
As well as direct sales activity, with a typical furniture purchase in the region of several thousands of pounds not surprisingly this business concentrates its marketing efforts at the top end of the market taking full colour advertising in the local glossies and Interior design magazines. This is complemented with product specific literature and a colour catalogue, updated annually, featuring the full range of furniture. A well designed, informative and user friendly website featuring all of the leading ranges which performs well within all the major search engines for the most appropriate search topics is also a major asset of the business.

Support & training
The owner will assist fully with support and training to ensure a smooth transfer of the business to new Owners and will be available for a longer period on a part-time basis if appropriate and subject to negotiation.

Reasons for selling
This is a genuine retirement sale.