Asking price: £200,000

Sales revenue: £290,400

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Established in 1999, this highly respected business, a firm favourite in the Central and South West London areas, provides a high quality painting and decorating service to a wide ranging customer base across the domestic and commercial sectors. Clients can include homeowners, offices, property management companies, architects and general contractors with typical jobs involving houses, offices, churches and schools – an area in which this business is particularly active throughout the summer holiday periods, having a number of longstanding relationships with educational establishments which provide repeat business, year on year.

For its Clients this business undertakes all aspects of painting and decorating including tilting and plasterwork and even carpentry when required, through a highly effective and efficient team of very well trained and experienced sub contractors – almost all of which are kept permanently busy by this business – many having been working with this organisation for several years. This business always provides the right teams with the right skills necessary to get the job finished properly and on time. It is particularly strong on Health and Safety, whilst still completing projects quickly and efficiently.

This business prides itself on the professionalism it brings to every task, however complex or simple it may be. Working on projects with a minimum value of £1,000, the aim of this business is always to complete the work on time, to budget and to the highest standards. This commitment to the highest standards of workmanship together with a clear understanding of the requirements of its Clients has resulted in a steady stream of repeat business – with approximately 65% of turnover estimated to come from this source. As a result, even when tendering, which it is not always required to do, this business wins jobs when it certainly is not the least cost option.

The cornerstone to the success of this business has been its constant investment in marketing ensuring high levels of awareness throughout its target sectors and the constant generation of high volumes of good quality leads. As a result the business has performed consistently well over the last few years despite the current owner, due to other business interests working just two days per week. With turnover for the financial year ending December 2007 of approximately £290,400 generating gross margins of 40% and profits available to the owner of the business in the region of £80,000 this represents an excellent opportunity for an existing operator to increase their penetration of this very lucrative marketplace or a new entrant to establish a foothold in the sector by acquiring an easy to manage, profitable painting and decorating business in the South West London area.
Key strengths:

This business has been founded on excellent management principles. It knows it can turn the volume of high quality leads up and down through its marketing activity. Consistent promotion has generated a high level of awareness of the business across the South West and Central London area which has been augmented by its excellent reputation for high standards of workmanship and reliability, all at a competitive price.

This business knows that if a job is estimated correctly and managed properly it will be completed properly. It has an excellent team of sub contract labour in place who are all very well trained, efficient and reliable despite working at rates slightly lower than the market average. As a consequence overheads are low. All its sub contractors have worked with this business for extended periods of time and are very well versed in the successful formula by which this business operates, completing the job to the very highest standards at the price ‘given’. Largely self managed the sub contractors themselves ensure standards are maintained even whilst the current Owner has increasingly taken a back seat in the running of the business in recent years.

As a result of its high standards this business can boast an extensive list of loyal Clients and is frequently ‘passed around from contact to contact’ and just as frequently taken on as a key supplier when key contacts move on to other companies or organisations.
A combination of low overheads, high levels of business activity from regular Clients and lower than average sub contract costs ensures the business operates on an excellent financial footing generating good returns for the current Owner.
Key opportunities:

There is an outstanding opportunity to build on the existing business levels and customer base of this company. With its outstanding reputation, a new Owner contributing fresh ideas, drive, enthusiasm and investment will have every advantage of building on an excellent platform.

With the current Owner working in the business on average just two days per week there is certainly scope to increase the levels of business activity. Additional marketing – usually in the form of leaflet drops would increase the volume of high quality leads the business receives for quoting and with the low overheads within the company and its excellent reputation this business is in the perfect position to take maximum advantage. Similarly this business currently declines jobs that are less than a £1,000 but could increase turnover and profitability significantly by reducing this limit slightly.

Not surprisingly this business is frequently asked to quote at an early stage of a project when there are small building works still to be done. This business currently declines work in this area to concentrate on its core skills however it could extend its range of services to include small building works and operating on the same sub contract basis this could also significantly increase the turnover and profitability of this business.

Financial profile:
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 December 2007 was slightly in excess of £290,000 generating gross profits of approximately £115,000 and profits available to the Owner of the business, working just two days per week in the business of £80,000.

The Asking price of £200,000 is for a sale of the shares in the business based on a zero Balance Sheet.

Years established: 1999

Employees: The Owner/Managing Director is responsible for the day-to-day running of the business supported by a longstanding team of sub contract painters, decorators and other tradesmen as required.

Relocatable: This business can be relocated.

Property: Leasehold

Location
The business operates from a Home Office environment and as such can be easily relocated.

Competition / Market
This business has a very high profile within its operating area as a result of a consistent and effective marketing campaigns built around door to door leaflet drops and direct marketing to the commercial sector. It is also listed in the main directories. This business has an excellent website that performs very well in all the major search engines for all appropriate search terms with its rankings boosted by sponsored links. By far its most effective marketing however is strong word of mouth recommendation testament to the excellent reputation this business has established in the past.

Support & training
The owner is happy to provide all the necessary training and handover required to ensure a smooth transfer of the business.

Reasons for selling
The current Owner wishes to pursue other business interests.