Asking price: £185,000

Sales revenue: £534,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
This family business was established by the owner in1989 and has built an oustanding reputation for supplying independent DIY and hardware stores with a wide range of goods, many of which are household named products. The company covers a wide area throughout the North East of England including the major conurbanisations of Teeside, Tyneside and Wearside.

The company’s impressive product offer includes paints and decorating materials, household hardware and electricals (sockets, switches, cables etc.) DIY goods, housewares and gardening. In all they keep in stock over 5000 different lines, although within all these product sectors there remainsconsiderable scope for expansion.

The company has a large database of customers with circa 100 who purchase goods on a regular basis with no one client generating the lions share of the turnover.

Customer Service:

Customer service is paramount to the success of the business. Customers receive a friendly and efficient service with reliable weekly or twice weekly deliveries, generally within 24 or 48 hours from receipt of order. All deliveries are made by the company’s own vehicle, with no outside haulage costs.

The company’s sales representative calls on a regular basis to take customer orders and to promote business, and this is supported by office telesales.

Equipment:

The company has a transit van for deliveries and all the warehouse racking, fixtures and fittings are included in the sale of the business.

Key Strengths:

The company has a loyal customer base built up over many years, with turnover spread over many accounts rather than concentrated in a few. No single customer, in fact, is responsible for more than 5% of sales. As an independent distributor, the company is able to apply an extremely flexible approach to its business operations, particularly its decision making in response to customer requests and enquiries

The business runs from a warehouse situated in the heart of its distribution area, but could be relocated anywhere within the North East.

The company has a long established and valuable relationship with many of the UK’s leading manufacturers, importers and suppliers in its market sectors, and benefits from competitive buying terms plus regular promotional discounts and rebates

The business is well run with a mix of account and cash customers. There is a good stock turnover ratio. The company is a reputable and successful supplier to the hardware and DIY market in the North-East of England
Key Opportunities:

This is an outstanding opportunity to build on the existing services and customer base of this business. With a strong demand for DIY and hard wear products, the business has an excellent platform to grow from.

Whilst the business is well established with a regular repeat customer base there are areas which the owner suggests could take the business forward to a new level. Although the stock range is extensive, there remains considerable opportunity to grow sales in all product areas by increasing the depth and range of stock.

While there is a small amount of cash sales to local tradesmen, there is in effect no trade counter, and this is a potential growth area. A cash and carry service for retail and trade customers could also be developed.

The business could also benefit from a fully functional website and from the development of interest sales and on-line ordering.

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 turnover is circa £534,000 per annum with Gross Profits of circa £139,000.

Years established: 1989

Employees: While the owner oversees most aspects of the business, the small work force has the experience and ability to effectively run day to day operations. Apart from a full time sales representative, there is a sales office/accounts administrator, a warehouseman and a delivery driver.

Property: Leasehold

Lease terms
Rent is circa £1,300 per month with a rolling three month notice period. Rates are circa £5,543 per annum.

Location
The business runs from two industrial units, which measure circa 3,500 sq. ft on the ground floor with reception, offices and warehouse storage. There is a mezzanine floor which measures circa 1,300 sq. ft used for further storage. Rent is circa £1,300 per month with a rolling three month notice period. Rates are circa £5,543 per annum.

Support & training
The owner would be happy to help out with a smooth transition of the business and help in anyway possible.

Reasons for selling
The owner has been working tirelessly to build the business up for the past 20 years and due to ill health would now like to retire. The owner believes this would be a perfect time for someone to take the company forward.