Asking price: £75,000

Sales revenue: £1,000,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Situated on a busy main road in a North Birmingham suburb, this well established business with historic turn over of £1,000,000 pa at a gross margin of £37% and shows excellent profitability. Extensive showroom, storage and office space with rent of £31,500pa. Rates £9,000pa.

Property: Leasehold

Location
LOCATION:
The business is situated close to an extremely busy junction of two main roads in a popular North Birmingham suburb. There are excellent bus and rail links and although there is no parking on the main road outside the premises a customer car park is provided at the rear.

BUSINESS:
This was established in 1986 and trades in the retail supply and fitting of quality kitchens, bathrooms and bedrooms. There is a relatively small proportion of direct labour involved in the fitting side but the majority is now carried out by sub-contractors.

The company itself consists of both a retail side along with a recently added design and development commercial arm and it is the retail side of the business which is offered for sale as the vendors now wish to concentrate and build the design and development business.

BUSINESS PREMISES:
These basically consist of five interconnected shops giving a glazed display frontage in excess of 66ft with a virtually central glazed entrance door. This leads to a well presented kitchen display/reception area off which, to the right, there are three further kitchen display showrooms at the front of the premises (total area in excess of 700sq ft) and a further large kitchen showroom at the rear measuring 610sq ft. To the left of the reception are two large well fitted bathroom display showrooms both measuring in excess of 200sq ft. The total showroom area is, therefore, in excess of 1,700sq ft. and show an excellent range of fitted kitchens and bathrooms. All the showrooms have suspended ceilings with inset lighting and floors that are changed to match the displays, but which are in the main ceramic tiled.

A door to the rear of the reception leads to a general office measuring 186sq ft off which there is a separate owner's office measuring 78sq ft.

A door at the rear of the main office leads through to a 250sq ft storage area and a corridor off which, there is a kitchen and separate ladies and gents wc's. This corridor also leads through to a rear workshop area measuring 264sq ft which, in turn, leads to a large store/garage area measuring 863sq ft with double roller shutter door to the rear car park. There is also a further storage area measuring 365sq ft which also have roller shutter doors to the rear.

(all sizes are approximate and should be considered 'nominal'.)
Note:
Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.

OUTSIDE:
At the rear of the premises there is a customer/staff car park which is accessed from a side road off the main road on which the showroom is located.

TENURE:
We are informed that the premises are leasehold and that the current lease ends in January 2010. We have been further informed that the Landlord is happy to grant a new lease. The current rent is £31,500 per annum.

RATES:
We are informed that the rates are £9,000 per annum.

SERVICES:
We understand from the vendor that all main services are connected to the property.

TRADE:
Draft Management accounts which show a turnover and expenditure for the retail side of the business for year ending March 2008 indicate an income of £700,000 per annum at a gross margin of 37% (including direct wages and sub-contract fees). After expenditure the accounts show excellent net profits. The vendors have been concentrating on setting up the Design and Development business which has resulted in the reduction in turnover this year from the usual £1,000,000.00 mark. New owners focusing on the retail business can easily bring it back to these levels.

HOURS:
Monday to Saturday 9.00am - 5.00pm
Sunday CLOSED

STAFF:
The business is currently run by the vendors along with three full time employees in the showroom and office. The accounts also show a direct labour wage bill of £29,828

GUIDE PRICE:
The vendors are seeking A REDUCED PRICE OF £75,000 plus stock at valuation, for the Leasehold, business goodwill, fixtures, fittings, all displays and equipment, subject to inventory.