Asking price: £475,000

Sales revenue: £1,528,000

Net profit: £100,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Wholesale Potato Suppliers Potato washing, sizing, grading and packaging

This well managed business was established approximately 20 years ago and has benefited immensely from the directors many years of experience. Since inception, the business model has been based on strong traditional values, with potatoes sourced from local suppliers. The potatoes, mainly baking variety, are washed, graded and packaged ready for the wholesale and the catering sectors. The finished products are then sold directly to retail outlets, mainly market based.

The business has an active customer base of circa 100 customers, with 50 or more purchasing weekly supplies. Repeat sales levels are high, with this being attributed to the high levels of personal service, coupled with regular visits by sales personnel.

The vendor of the business, although reasonably satisfied with current levels of business and organic growth, feels that a new owner could expect to increase production by up to 50%, should demand be elevated through further marketing outreach.

The availability of acquisition of this remarkable company will appeal to a wide sector of investors and businesses already operating in the same or similar sectors. This appeal is enhanced by the vendors willingness to be retained for an extended period of time, (by separate negotiation, should the new owners require this) thus providing a seamless take up by the new owners. Therefore, with these factors in mind, we believe that early inspection is to be strongly recommended.

Equipment:

The company owns and maintains a large inventory of machines and equipment used in the daily operation of this business. This inventory is expected to be included in a successful sales package, and will be made available from the owner to seriously interested parties.

Customer Service:

As previously mentioned, the company has developed excellent relations with its customer base, due to the high levels of personal service and regular contact with their sales personnel.

Key Strengths:

The key strength of this business must surely be the simplicity of their traditional business model, and places them well for further growth in what are seen by many to be difficult trading times.

Key Opportunities:

The key opportunity here is the company’s ability to expand production by up to 50% should market demand exist through an extended sales push.

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.

Turnover circa: £1,528,000
Gross Profit circa: £454,000
Pre tax net Profit circa: £100,000
Net Asset Value circa: £130,000.

Years established: 1988

Employees: The company currently employs 14 full time staff, including the Director and a Shareholder.

Trading hours: Monday – Friday: 8.00am – 4.30pm

Property: Leasehold

Lease terms
Current yearly rental comes in at circa £36,000, with rates coming in at circa £27,000 per annum.

Location
The business premises are connected to all main services apart from Gas. The current lease has approx. 18months to run, but we are led to believe that a 5 year extension is more than probable, if required. Current yearly rental comes in at circa £36,000, with rates coming in at circa £27,000 per annum.

MAIN PACKHOUSE approx. 12,600 SQ FT
LOADING BAY approx. 1200 SQFT
COLD STORE approx. 2250 SQ FT
STAND ALONE QC ROOM/WORKSHOP approx. 720 SQ FT
ROOFED AREA approx. 1200 SQ FT
OFFICES & TOILET FACILITIES approx. 540 SQ FT

Competition / Market
In line with their traditional approach to marketing, the company has never advertised or developed an internet website, depending totally on the growth developed by direct customer contact. This may easily be seen as an opportunity by a new owner.

Support & training
Full support and any necessary training will be provided during handover as part of a successful sale package.

Reasons for selling
The Director/Owner wishes to examine other business opportunities, should he not be required for retention purposes.