Asking price: £120,000

Sales revenue: £200,000

Net profit: £45,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
The current business was originally established in St. Johns Wood in 1982. Building a great reputation from the outset, the family business supplied and fitted carpets and flooring to both Retail and Commercial clients. Always buying in the best quality products, the business competed at the top end of the market from the outset. The current owner was an apprentice fitter with the company initially, and has spent his working life in the company, taking real pride in his work. In recent years he has nurtured and developed the business with his family. In 1987, they moved the operations to St. Albans, and opened a further outlet in Berkhamsted. After years of successful operation, the business relocated all its operation centrally to the current site in Hemel Hempstead, on a new retail park, where they can hold stock, assets, and have a showroom.

This thriving business has provided excellent service to customers for more than 20 years. Customers can choose from stock that includes hundreds of quality, top of the range carpets and rugs supplied by leading manufacturers that are all displayed in the premier showroom, along with samples of vinyl flooring, under-lays and wooden and laminate flooring, giving customers fantastic wall-to-wall choice.

Customers appreciate the exceptionally friendly, professional service and advice they receive. The business realises that quality and choice counts, it has gained an excellent reputation, trading from its newly built, well-established, attractive and professionally fitted premises.

The customer commitment has gained the business a unique competitive advantage. Only stocking products at the mid to top range, the company provides the highest quality of product, fitting and overall service.

Although only 40% of the current business is with the commercial / contract sector, it provides 70% of the revenue. This sector has some great growth potential from the already large list of commercial customers. Key end use applications include commercial offices, retail, leisure, education and healthcare sectors. The business has also developed a profitable niche completing contracts nationally for the Nursing Home sector.

Customer Service:

This Business supplies excellent products and delivers first class customer service. The Vendor employs 11 sub-contractor fitters, some of whom have been with the business for over 20 years. This has meant that the quality of workmanship is very high, with each fitter focused on building the reputation of the business, thus ensuring a constant level of repeat business.

Key Strengths:

Operating since 1982, the business has built a tremendous reputation and client base, with sustained repeat business both locally and nationally. The location offers both great transport links, and as it is in a newly built retail / light industrial park, can also offer a professional well fitted showroom for potential retail customers. With a team of sub-contracted fitters on the books, who work at the highest level, the business is flexible, and can respond quickly to new enquires, without the need for a long term high wage commitment. The business is a proud member of the Flooring Guild, and unlike some of the major national carpet retail chains, has the accreditation of the Office of Fair Trading.

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 has traded for a number of years, recently the turnover levels have been between £350,000 - £400,000, prodcuing a net profit year on year of circa £40,000.

These levels has taken a dip in the last set of accounts due to the move to the current premises, and the amount invested in developing the property for trading.

Years established: 1982

Employees: The business currently employs the vendor as the manager of the operation, with 1 part-time sales manager for the shop. Alongside this the company employs up-to 11 specialist sub-contractors for carpet fitting, laminate / real wood floor fitting and sanding, and Amtico floor fitting. The current vendor has a history of qualified people he can call on nationally, or for larger contracts.

Trading hours: Monday – Friday: 9:00 am – 5:00 pm Option to trade 7 days per week, 6:00 am – 8:00 pm

Property: Leasehold

Lease terms
Leasehold 10 years remaining, and fully renewable Rent £12,600 per annum Rates £5000 per annum

Location
Leasehold 10 years remaining, and fully renewable
Rent £12,600 per annum
Rates £5000 per annum

The premises includes circa 1000 sq ft of warehouse space, with a new mezzanine floor installed to the highest regulations there is also circa 1000 sq ft of showroom, office and staff facility space on the first floor.

Expansion potential
This business offers an excellent opportunity for the successful buyer who is seeking a well-established business with the capacity to increase turnover, possibly expanding into other satellite locations and developing new regional markets. This business is based in an excellent location and could certainly achieve increased sales and profits as the wider market picks-up, and the retail park fills with other operations. The business would ideally suit an owner/manager who could build on the excellent reputation and relationships with both customers and suppliers.

Competition / Market
The business has used limited advertising in the past and an immense opportunity exists to build on this businesses reputation and implement further and more assertive methods of advertising to expose the business to even greater markets. The company has in the past had a direct e-mail and fax campaign alongside special offers for the local sector. This could be developed further with every homeowner targeted as a prospective customer; various methods could be used in this regard including the local press, a direst sales force, trade exhibitions, leaflets, brochures and direct mail. A large percentage of new clients derive from recommendations, the business regards existing clients as their best advertisers and has maintained an impressive base of satisfied repeat accounts and clientele, while continuing to attract both new referrals and customers. The business has a quality web presence which allows potential customers to view the extensive range of brand name carpets on offer, and gives excellent potential to increase the turnover in the future. The website includes some testimonials, which could be added to. It also details pricing, and tips for measuring. The website is impressive, but there is potential to develop it further to secure further revenue and also a need to optimize it for search engines, and promote the web address in other ways.

Support & training
The owner will provide full business familiarisation training and handover.

Reasons for selling
Unfortunately due to a bereavement within the family, the vendor has realised his passion for the business is not at the level it once was. He would like to hand the business over to a new owner, whilst he enjoys the fruits of many years hard work in his retirement.