Asking price: £185,000

Sales revenue: £866,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Operating since 1992, this business is very well established within its local marketplace as one of, if not the leading design centre for fitted kitchens, bathrooms and bedrooms in West Surrey. Operating primarily within a twenty mile radius of its Head Office, this business attracts Clients from some of the most affluent areas of Surrey, Hampshire and South West London including Camberley, Winchester, Putney right down to Guildford and from all the towns and villages in between.
Both a retailer – offering a supply only service for the competent DIY Client but with the vast majority of turnover arising from design and fit projects, this business operates from approximately 2,000 square feet of very well suited, leasehold premises. The showroom is packed with designer fitted kitchens, bathroom and bedroom displays – a wide selection of sinks, taps and accessories, door styles, baths, sanitaryware, shower systems and cubicles, ceramic tiles and flooring.
Friendly, personal service has been the key to the success of this business and is something the staff take particular pride in. All projects are treated individually with bespoke designs developed from manufacturer templates. The business offers free surveys and quotations. Designs are produced using the latest software including Planit, Virtual Worlds and Kitchendraw which is linked directly to the manufacturers systems ensuring smooth production from detailed designs. All aspects of a job are managed with a clear commitment to detail – from the initial design, supply and fit to include all plumbing and electrical work. The business will even carry out minor building works where it is integral to the project, calling upon a number of highly experienced and skilled sub contractors.
This company’s philosophy is to provide the best quality, design and installation of middle to top range products and specializes in those British and Continental suppliers who most fulfill this criteria including Cuisines Schmidt, Crown and Chameleon. Comprehensive appliance ranges include De Dietrich, Bosch, Zanussi, Neff, AEG, Hotpoint, Rangemaster, Smeg with Franke, Villeroy & Boch, Moores, Ideal Standard, Trevi and the Showerlux brands all represented amongst many more across its full range of products.
This is a very well managed business run on very tight financial lines. The business does not currently run a Business overdraft or loan and has not needed any for several years. With turnover of £804,400 for the financial year ending March 2007 generating gross profits in excess of £300,000 and net operating profits of approximately £26,500 after generous Directors remunerations and pension contributions, this represents an excellent opportunity for a new entrant to acquire a very well established, profitable business in the kitchen, bathroom and bedroom sector or alternatively an existing operator to extend their penetration of the market in a very affluent area on the West Surrey, Berkshire and Hampshire borders.

Key strengths:
Having traded for over fifteen years, offering a fully comprehensive service, this business enjoys a considerable repeat Client base. For some Clients it is working on their third kitchen and for others it can do no more until they move house again having worked on every room in their current homes.
This business has built a tremendous reputation for supplying only the best goods and top quality workmanship at very competitive prices. It has very knowledgeable, motivated staff and an excellent portfolio of highly skilled and experienced sub contractors many of which work for this business on an almost exclusive basis – such is the volume of work passing through. This business works very closely with its suppliers ensuring a consistently high quality of product.
This business operates from very well suited premises of approximately 2,000 square feet in one of the more affluent areas of Surrey. Not a prime High Street location – yet still prominent, overheads are lower than might be expected. In a secondary retail position, the premises are a ‘destination’ location attracting serious buyers rather than browsers. The showroom is fitted out to a very high standard representing an excellent showcase not only for the products represented by this business but the very high quality of workmanship on offer too.
Key opportunities:
With a strong demand for the products and services of this business, combined with a capacity to increase turnover, a new owner contributing fresh ideas and enthusiasm, will have every advantage of building on an excellent platform. Although trading at close to capacity at certain times of the year, the current Owner feels it is quite feasible to drive turnover beyond the £1 million mark.
To date, this business has predominantly targeted the residential sector. There can be no doubt that significant growth in turnover and profitability could also be achieved by establishing more and better relationships with designers, architects, small housebuilders and developers regularly involved in prestigious building and refurbishment projects in the surrounding areas of this business.
Furthermore there is certainly scope to increase turnover from the design and fit of bedrooms - a far less competitive sector than bathrooms and kitchens yet, perhaps not pushed as much as it could be by this business.

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 March 2007 was £804,400 generating gross profits of approximately £301,900 and pre-tax net operating profits of £26,500 after Directors remunerations of £47,000 and pension contributions of £8,700.
The Asking Price of £185,000 includes stock which fluctuates between £65,000 and £85,000 at any one time.

Years established: 1992

Employees: This is a family business with a Husband and Wife team responsible for the day-to-day running of the outlet supported by two designers and a sales administrator.

Property: Leasehold

Lease terms
The premises are leasehold with 5 years remaining at an annual rent of approximately £34,000. Rates are between £8,000 and £9,000 per annum.

Location
Positioned in a secondary retail location, the business operates from very well suited premises of approximately 2,000 square feet across the Ground and First floors, incorporating a small office on the upper floor and a small storage area. There is ample customer parking to the rear. The premises are leasehold with 5 years remaining at an annual rent of approximately £34,000. Rates are between £8,000 and £9,000 per annum.
The business also has an informal arrangement to rent further space in premises across the road from the showroom. Unmanned the outlet acts as an additional shop window for its tiles and bedroom range at a monthly, all inclusive cost of £470.

Competition / Market
The most effective form of advertising for this business is ‘word of mouth’ recommendation bearing testimony to the excellent reputation the business has earned since its inception. What advertising the business does is limited to local press in free circulation, upmarket glossy magazines and the occasional display ad in the local ‘Country’ magazines as well as directory listings in Yellow Pages etc. The business also contributes to the national advertising campaigns of one of its major manufacturers – in which it is listed as a major supplier. This business also has a well designed and easy to navigate web-site featuring a wide range of products, the design and installation service and case histories of its previous projects – which performs very well in all the major search engines for all appropriate search topics

Support & training
The owner will provide full business familiarisation, training and handover to ensure a smooth transition of the business to new Owners.

Reasons for selling
This is a genuine retirement sale.