Asking price: £120,000

Sales revenue: £200,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Computer Services Provider – Hardware and Software Retail, Laptop & PC Repairs and Upgrades, Internet Café, Gaming and Office Services

Established just over five years ago and self-financed by the current Owners this extremely well managed business is a computer and office services provider located in an Internet café servicing the requirements of local businesses, SOHO’s and personal customers.

Based in a very well positioned, prominent High Street location this business operates from retail premises – with an Internet Café frontage in an area with a large volume of small and medium sized businesses and professionals working from home. Close to a major London Underground station the business also attracts passing traffic from commuters on their way to and from the City and West End of London.

This business has been designed to meet the computer user’s every need – whether it’s retail, ‘trade’ or simply access for personal use. Customers can visit the retail premises to select from the range of computers and laptops – and even have them custom built - as well as choosing from a wide range of hardware, software and peripherals. Those with a problem with their IT equipment can take advantage of the excellent technical knowledge on hand whether it is for Laptop & PC Repairs, Upgrades, Networking, Wireless Connections, PC Security, Virus Removal, Data Backup or Data Recovery. And for those that just want access to the Internet – or want access to a photocopier, scanner or fax – there’s some of the best facilities available in the area especially in the very well equipped high specification Internet Café which includes leather chairs, Quadcore computers with 3 Gigabyte memory, High Definition graphics cards which are suitable for gaming with 22Megabit fibre optic internet connections and 22 inch High Definition screens with built in 1.3 MGB pixel webcams - many customers use this for video conferencing. And for those that want to purchase equipment without leaving the comfort of their own home there’s even a recently launched on-line shop offering same day dispatch on a wide range of IT equipment.
This business has deservedly earned an excellent reputation for quality products, competitive prices and very high quality levels of customer service – particularly being very responsive to customer requests - as well as its high levels of technical ability.
With turnover of £200,000 for the most recent financial year for which figures are available generating gross margins of approx 50%, this represents an excellent opportunity to acquire a rapidly growing, broad ranging computer and office services business with an excellent reputation – a business which has rapidly established itself as a firm fixture on its local High Street.

Services include:

The retail of new computers and laptops – to any specification - monitors, printers, software and peripherals, repairs and upgrades, Internet café, e-mail, network games, printing, scanning and photocopying.

Servicing, repairs and upgrades of PC’s and laptops is a particularly important source of revenue:

Computer and Laptop Services

Service Job Total Average Per Day Average Labour Charge per Service
Oct ‘08 (20days) 58 2.9 £38
Nov ’08 (30days) 105 3.5 £34.50
Dec ’08 (31days) 97 3.12 £53
Jan ’09 (31days) 122 3.93 £45
Feb ’09 (28days) 79 2.82 £59
Mar ’09 (15days) 49 3.26 £51.89

Key Strengths:
This business is ideally located with high levels of passing traffic maintaining high levels of awareness and footfall. Despite having moved to its current premises from across the road in the past few months, this business is well established and has built up excellent business relationships with its supply base and customers, many of which rely on a high standard of service. Receiving it, they return time and time again. Swift response to customer orders and servicing and repair requirements, high technical ability, attention to detail and a friendly approach ensure customers enjoy a professional and efficient service.

This business benefits from high levels of activity particularly in relation to PC and Laptop repairs and upgrades and is extremely adept at recycling spares from irreparable computers and laptops helping boost what are already very healthy margins.

The Internet Café and gaming facilities this business offers are equally impressive – a match for, if not superior to, anything else on offer elsewhere including super fast fibre optic connections, high definition screens and comfortable leather chairs – all designed to keep customers coming back and online for longer.
Despite its relatively small size this business can compete very favourably with the major High Street retailers. This combined with the high levels of service provided creates a powerful offering to the customer base of this business.

Key opportunities:
There is a tremendous opportunity to build on the existing base of this business. With a strong local demand for its products and services, there is the capacity to increase turnover and profitability for a new owner contributing fresh ideas, outside influence, enthusiasm and motivation.

Whilst this business is well established with a good, solid, loyal following there is the scope to leverage the excellent local reputation the business has built particularly in relation to its extensive IT knowledge and background to extend its customer base further in to the local SME community in particular – either through a more structured approach to marketing or via a dedicated sales effort and to extend from what is currently perceived mainly as a retail based operation out onto customer sites.
Although a major source of revenue, the business currently outsources repairs of PCB’s (i.e. Board Level Repairs). Bringing this work in house would significantly impact on profitability.

Customer service:
The Company is very proud of the relationships that have been established with customers and suppliers. The commitment of the Company is to supply goods and provide services of the highest order. Employees have responsibility for the quality of advice, products, services and customer service they supply. The Company's objective is to ensure customer satisfaction in all areas of its business activities.

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 most recent financial year for which figures are available was approximately £200,000 with gross margins of approximately 50%.
The Asking price of £120,000 is for a sale of the considerable assets and goodwill in the usiness, with a reasonable handover period to be negotiated.

Employees: One of the Owners of the business – operating at ‘arms length’ as an Owner/Investor – the other is responsible for the day-to-day operation of the business supported by two full time Service Technicians, with part-time staff managing the front of house operations – the Internet café etc.

Trading hours: The business operates between 10.00am and 10.00pm, seven days per week.

Property: Leasehold

Lease terms
This business operates from very well presented leasehold retail premises. There are ten years remaining on the lease. Rent is £22,000 per annum. Rates are £2,550 per annum.

Location
This business operates from very well presented leasehold retail premises. There are ten years remaining on the lease. Rent is £22,000 per annum. Rates are £2,550 per annum.
The premises which have recently been refurbished to a high standard including a new shopfront, new shopfit including new floors etc comprises the Internet café/gaming area to the front of the Ground Floor with the Retail showroom to the rear. The admin/office area occupies the First Floor together with a very well-equipped workshop/maintenance area providing excellent facilities for the business’s service, repair and testing services.
There are loading bays out to the front of the premises and ample street parking in the surrounding streets.
Location:
This business is ideally located, occupying a prominent position on this very busy High Street, close to a major London Underground station offering easy access to the City and West End of London. It is situated amidst a wide range of other retail outlets – all of whom are currently customers or potential customers for the services of this business. The area is also populated with a large number of SME’s, mid sized Corporates and professionals working from home office environments as well as a high volume of a younger transitory population – an ideal target market for the gaming, Internet access and e-mail facilities available through the Internet café.

Competition / Market
This business has done little or nothing by way of advertising in the past with a large percentage of new business being the result of the most effective form of advertising – word of mouth recommendation. By far the most visible form of marketing for this business is its retail premises, close to a major London Underground station and prominently situated on a busy High Street that is a major thoroughfare into central London. What marketing the business undertakes is limited to local door drops advertising its products and services to the high volumes of professionals that live in the area. The business has a very well designed, informative and easy to navigate website which is e-commerce enabled. With the e-commerce facility only recently launched the site would benefit from an investment in marketing.

Support & training
The current Owner will provide full handover and training to ensure a smooth transfer of the business to new Owners.

Reasons for selling
The current Owners wish to pursue other business interests.