Asking price: £75,000

Sales revenue: £170,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Turner Butler are delighted to be appointed sole selling agents for this family owned and managed business. This truly established business has been trading for some 30 years and in that time has built up a sterling reputation as well as a loyal client base. This is highlighted by the consistent turnover figures the business has enjoyed over recent years.

The company supplies hydraulic hose and hydraulic engineering parts (filters, spare parts, seals, lubricants etc) to in the main the trade. As well as this it also provides a repair and maintenance service to customers. The company’s ability to repair and turn round critical repairs quickly translates to minimalisation of down time for vital and expensive to operate machinery. At present 70 % of turnover comes from parts sales with the remaining 30% being attributed to repair, maintenance and service.

The company has huge development potential for a new owner as it has a very broad customer base, both public and private sector.

The business is turn key ready for a new owner, who will probably already be associated with this type of industry.

Equipment:

The company owns and maintains an array of tools and machinery in order to carry out its repairs effectively. It also utilises a computerised stock control system and TAS accounting software. It has two vans, one of which is included within the sale.

Customer Service:

This business is dedicated to providing 100% customer satisfaction. The drive for quality is reflected with a flexibility and willingness to exceed client expectations, which is further demonstrated by the exceptional levels of repeat business and customer loyalty the business enjoys. This business provides quality services at highly competitive rates and clients receive a professional and efficient service.

Key Strengths:

One of the key strengths of this business, apart from it’s abilities to repair or recondition large components, is that by being small and reactive it can turn round repairs very quickly. Other key strengths include:

• Market presence, having serviced the local market for some 30 years
• Large and diverse customer base (in excess of 100 regulars and several thousand historically)
• Knowledge and reputation
• Stock holding and choice
• Competitive

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 consistently achieves turnover circa £170,000 per annum with an impressive gross profit margins in excess of 50%. Current stock levels are circa £50,000.

Note: The vendor would consider retaining the service element of the business if a new owner wished to purchase the hose and spares sales side of the business on its own.

Employees: As already mentioned this is a family run business. The husband is responsible for all technical aspects of the business including repair whilst the wife is the office manager. Both are full time within the business. The business also has a full time trade counter sales person and a part time administrator (2 days a week).

Trading hours: Monday – Friday: 0830-1700 Saturday: 0830-1230

Property: Leasehold

Lease terms
Current rent is circa £12,500 p.a. Rates are £4580 p.a.

Location
The premises are rented. It is understood a new lease would be made available to a new owner. Current rent is circa £12,500 p.a. Rates are £4580 p.a. The business is ideally located on a well known industrial estate close to the town centre. It has good accessibility and parking outside for customers. The ground floor is circa 3000 square feet. There is also a mezzanine where the offices are located (circa 450 square feet). The warehouse is fully racked out.

Expansion potential
There are excellent opportunities to increase the levels of business. Since inception this business has performed to a high standard and has earned wide-recognition for the level of services provided for its clients. It is considered that a new owner with fresh impetus and enthusiasm can further capitalise on the ever increasing opportunities made available to the company through its reputation. The business has never employed sales people. Because of this its existing client base is ripe for future development.

Competition / Market
A large percentage of new clients derive from word of mouth recommendations, which is further testimony of the excellent reputation the business has earned since inception. The business has used limited advertising in the past and there are excellent opportunities to increase this and market the business more aggressively, either through traditional means or via the internet. Investment in a company website could ultimately generate further business. The business currently advertises in The Yellow Pages and Thomsons Local.

Support & training
The current owners would be happy to provide full training and support at handover. They would also consider staying on for a prolonged period of time if so required by a new owner, subject to negotiation.

Reasons for selling
This is a genuine retirement sale.