Asking price: £495,000

Sales revenue: £346,000

Net profit: £55,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
This business is a professional trade only wholesale cash and carry service for independent retailers that stocks a wide range of items including confectionery, drink, batteries, smoking provisions, giftware, tools, underwear, watches, kitchen and housewares, toys and games, electrical, car accessories and cleaners, £1 lines and branded clearance goods, etc., with new stock constantly arriving.

Owned by the current vendor since 2002, the business is constantly busy with very little local competition. With on-line ordering facilities the business is now established across the UK and abroad including Malta, Spain and the Falklands. 100% Cash and Carry, the business has a very small minimum order level and delivers using couriers plus its own vehicles for local deliveries to small local independents across Hampshire and Dorset.

The majority of goods are sourced in the UK with a small percentage from Europe, customers can purchase from the on-line catalogue which showcases in excess of 1,500 items across a range of popular categories.

Quality Assurance:

Member of the Federation of Small Businesses
Member of the Chamber of Commerce

Equipment:

Fork lift and pallet trucks plus a small van
Point of sale software
Administration and Sage Accounting system

Customer Service:

This business provides customers with the right products at the right prices, with the emphasis on service, value, quality and reliability.

Key Strengths:

The business is well established with a reliable reputation and is very profitable benefiting from its close supplier relationship and consequent buying power. The business has earned an outstanding reputation for its professionalism, service, reliability, flexibility, efficient order fulfilment and a willingness to help.

With a loyal and growing customer base of circa 9,000 the business retains a high level of repeat business, particularly among a number of customers returning on a regular basis due to the excellent choice of products and competitive pricing.

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 is financially stable with positive cash flow.

Sales revenue is circa £346,000 per annum with Gross Profit circa £119,000 and stock value circa £110,000.

Years established: 2002

Employees: The owner works full time in the business assisted by three full time staff.

Trading hours: Monday – Friday: 9am – 5.30 pm Customers can buy On Line 24 hours a day

Property: Leasehold

Lease terms
Rent is £16,000 per annum and rates £5,500 per annum

Location
The business operates from leasehold premises on three year renewable lease which expires in 2010.

The two storey premises comprise of a fully racked warehouse for storage. The first floor contains offices, a showroom and extra storage and benefits from a lift to the first floor.

Outside there is a substantial yard for deliveries, a large car park plus 1 x 40 ft. container for further storage of products. The business is located close to the M27/M3, which helps the business to respond quickly and effectively to customer orders.

Rent is £16,000 per annum and rates £5,500 per annum

Expansion potential
This business offers a new owner the opportunity to build on the existing products and customer base. There are many excellent avenues for growth, which the current owner has avoided in order to keep down staff levels and manage the business successfully. Additional sales staff plus investment in advertising and marketing could very easily increase the revenue of the business. With a strong demand for products combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in sales and marketing resources will have every advantage of building on an excellent platform.

Competition / Market
The best form of advertising for this business is "Recommendation". The business has an excellent and well designed website for on line ordering, which is easy to navigate and approximately 85% of business is gained through this medium. A high percentage is repeat business and word of mouth recommendation. With limited advertising being used in the past there are excellent opportunities to increase this and market the business more aggressively. A large percentage of new business is generated from customer referrals, bearing strong testimony to the business’s excellent reputation.

Support & training
The vendor is happy to provide all necessary training and all relevant contacts to allow continuity of trading.

Reasons for selling
The owner now wishes to retire and take life more easily.