Asking price: £425,000

Sales revenue: £1,000,000

Net profit: £150,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
This well established and highly profitable business was established by its present Managing Director in 1983 and has traded successfully in the same area of South Wales ever since. As such it is a well-known and respected company with a strong and loyal customer base that trades within a fifteen-mile radius of its premises. Its key strength has been to remain loyal to the tradesmen and small to medium size building and plumbing companies in the area and not to have established alliances with national house building operations that demand high volume and low margin suppliers. This has meant that in times of hardship it has not experienced the significant fall of in business that many other competitors have had to ride out.

The business trades specifically in the plumbing and bathroom market place supplying everything from an olive to a complete central heating system. The company only stocks branded products and carry a wide range of well known manufacturers such as Ideal Standard, Armly, Shanks, Rocker, Twyfords and many others. Eighty percent of its revenue is generated from trade customers with the remaining twenty percent coming from the retail DIY sector.

Customer Service:

In this trade the customers like continuity, and the staff and management have all been involved with the business for a number of years. This creates a trading history and customer relationship that is invaluable. The business provides an almost instant response to customer requests with a same day site delivery service available in most circumstances. This is made possible by the very significant stock levels that are also competitively priced.

Key Strengths:

The business is a member of UNIMER buying group.
Strong profits
No Borrowings
Freehold available if required
Excellent staff
Good stock levels

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 enjoys a turnover in the region of £1,000,000 with strong gross margins and an adjusted net profit of circa £150,000. The company has no borrowings. The shareholder’s funds remain stable in the region of £80,000.

Years established: 1983

Employees: One director One Company Secretary One Stock Controller One Admin One Warehouse and Delivery

Property: Freehold

Location
The freehold premises are available to purchase if required. The premises have main road frontage and consist of a trade counter, extensive storage area, offices and retail displays. It is entirely suitable for the needs of the business.

Expansion potential
The company would benefit from a bespoke area given over to bathroom displays. This would also lead to an increase in demand for design and installation from the retail sector.

Competition / Market
The business is so well known that marketing is minimal. They place occasional adverts in the local press and have a small presence in local directories. The company does not have a website

Support & training
There will be a full and professional handover for a period to be agreed as part of the overall sales negotiation

Reasons for selling
The managing director has spent the last twenty-six years building this successful business and has decided that the timing is right for it to be sold to the next generation of owners who can continue to drive it forwards to its next logical step. The existing director wishes to retire.