Asking price: £1,195,000

Sales revenue: £1,000,000

Net profit: £340,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Freehold Painting & Decorating Contractor including 1 x Paint and 1 x Hardware Retail Shops, plus Container Storage Rental

This business was founded in 1989 by the Vendors and has grown since to become the leading painting and decorating contractor, as well as the most substantial retailer of paint and decorating supplies and hardware on the North Coast of Scotland.

The business operates from a prime Town Centre location and has established itself as one of the region’s leading independent retailers of paint and decorating supplies, hardware an the area’s leading Painting Contractor. Many current customers have been loyal to the business since the very beginning and this has been due in no small part to the business’s competitive prices, quality products, first class service and attention to detail.

The business has always believed in the pursuit of excellence, installing new technology, constantly reviewing and updating its service commitment and its methods of business, ensuring that valued customers receive the very best service and quality of product at all times.

The business has shown itself to be resilient in the face of competitive and economic forces and has maintained strong and incremental growth over its 20 years of trading. The business is further supported by exemplary relations with key suppliers who have helped to ensure that whatever the product, service and availability is never compromised and that customers are as a result never let down. This commitment to supply chain relationships has underpinned this business’s abilities in product quality and sustained business growth.

No small part in the ability of this business to grow and sustain its profitability is due to the quality of its people. The business has a strong commitment to the development and welfare of its staff; which has contributed, alongside investment in technology, to the excellent profitability of the business and its current position as it is poised to exploit expected and significant new growth in turnover.

A key component has been customer service which is focused to a great extent through the retail units, the place where the reputation of the business can be made or lost. Understanding this has meant that the business has prioritised this area such that it represents as much a high quality showroom for its range of products as it does being point of purchase.

Customer Service:

The business manages several hundred customers in any normal week and has the systems, processes and people to ensure that both productivity and customers’ orders are satisfied. The most important aspect of customer management and satisfaction considered by the business is honesty and is responsible for the business retaining many customers and the reputation for which has led to the acquisition of many new customers.

High quality service, with flexibility, honesty, reliability and good value, every order request is important and customers always come first. The result is self evident in the business’s sustained level of repeat business, boasting such clients as the Ministry of Defence, Rolls Royce and BP.

Key Strengths:

The business is managed by the 5 partners who have , over time developed and nurtured a management team capable of overseeing business operations effectively, reducing the need for constant or daily input from the vendors. This has resulted in customer relations founded on a history of trading satisfaction and not contingent upon the presence of the vendors.

The business is well established and very profitable, with a loyal and growing customer base, retaining a high level of repeat business, particularly among a number of customers returning on a regular basis and having done so for many years.
The company has earned an outstanding reputation for its professionalism, service, reliability, flexibility, efficient order fulfilment and a willingness to help.

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 no borrowings, low overheads, positive cash flow, high gross and high net profit and has shown consistent high growth over 20 years trading.

Sales revenue is circa £1,000,000 per annum and the vendor feels that with investment in sales and marketing combined with the expected increase in market demand the business could dramatically increase its revenues.

Years established: 1989

Employees: The business currently employs the 5 partners, plus a further 23 staff, made up of administrative personnel, painters/decorators and a Quantity Surveyor, plus retail staff.

Property: Freehold

Location
The business is located in a Town on the North Coast of Scotland and operates from 2 retail outlets, one of circa 1,500 square foot, the second of circa 2,500 square foot plus a storage yard. There is also a 3 bedroom, semi detached house on the Island of Orkney that is currently being utilised as accommodation for some of the staff.

The retail premises are superbly appointed and represent the professional qualities and service the company has built its reputation upon.

Expansion potential
The current market for this business’s services is growing and is forecast in the near and longer term for significant growth. With the upcoming project of off-shore wind turbines, the opportunity to secure substantial long term contracts throughout the development phase, followed by ongoing maintenance programmes. The business is well positioned to take maximum advantage of this growth as it occurs. There is also the opportuniy, subject to planning, to develop the 2 existing retail outlets into 1 substantial ‘destination’ home improvement unit, creating a one stop shop facility with an added food and beverage provision.

Competition / Market
The business has used limited advertising in the past and there are excellent opportunities to increase this and market the business more aggressively to significantly increase turnover. A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word of mouth recommendation.

Support & training
The current owner will provide all necessary training and all relevant contacts to allow continuity of trading, with some of the partners prepared to stay with the company if required.

Reasons for selling
The business is for sale as a result of the vendors’ wish to semi retire and enjoy the substantial fruits of their labour.