Asking price: £675,000

Sales revenue: £382,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
This business set up by the vendors back in 1991 has established itself as a leading independent retailer of beds and mattresses in the North Cheshire/South Manchester/Derbyshire areas and can boast one of the largest showrooms in the region.

The site is easily accessible and has two floors of spacious showrooms with extensive displays of over one hundred famous name beds, mattresses and bedsteads - many at half price or less.

In addition to this the business has a well stocked warehouse, and enjoys excellent supplier relationships with all its leading manufacturers to ensure immediate availability. The full range of products include:

• Pocketed Spring Beds.
• Latex & Hypo Allergenic Beds.
• Orthopaedic Beds.
• Electric Adjustable Beds.
• Storage & Non Storage Divans.
• Pine Bunks & Bedsteads.
• Cast Iron & Metal Bedsteads.
• Guest Beds & Spacesavers.
• Odd Mattresses - All Sizes.
• Headboards, Pillows & Mattress Protectors

As an independent retailer, the business sources ranges of stylish beds from many leading manufacturers, as well as lesser known but great value brands, ensuring that customers are offered a real choice, while protecting margins and the Company’s profitability. Exclusivity agreements are in place with a number of suppliers, and the brands on display include Silentnight, Sealy, Sleepeezee, Rest Assured, Myers, Millbrook, Dunlopillo, Health Beds and Airsprung.

The business has literally thousands of satisfied customers, and has built up a superb reputation for service, based on expert and impartial advice, quality and choice of product, and value for money. It also provides free local delivery with a disposal service if required.

Equipment:

The company utilises an excellent off the shelf computer accounts management programme(SNIP) to run the business. The payroll is also computerised (IRIS).

Customer Service:

The management hold the firm belief that satisfied customers not only return, but also recommend friends and families, and strictly maintain levels of quality and service, to ensure continued customer satisfaction. The results of this commitment are evident in the high rate of repeat orders, and the impressive level of new business generated by referrals. During its life, the Company has served many generations of the same families, which is further testament to the service levels it provides.

The business is a member of The British Shops and Stores Association and The Sleep Council, and the Managing Director is a long-time Member of The Chartered Institute of Marketing.

Key Strengths:

As with any business of this nature location and accessibility is key. The business occupies excellent premises that are spacious, accessible and easy to find. Supply agreements in place also ensure speedy deliveries, and that optimum gross profit margins are achieved. Healthy stock levels are also maintained. The showroom display offers a very wide range of beds, because the Management understands that “lying and trying, resting and testing”, is an essential part of the selection process. This is one of the many reasons why this business has prospered, and enjoys such high levels of repeat business.

These factors, together with the excellent reputation, knowledgeable staff, and levels of service, set this business apart. And with all the necessary foundations already in place, the business is well positioned for future growth.

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 currently achieves turnover circa £382,000 per annum with an impressive gross profit margin of circa 49%(circa £187,000). Current stock levels are circa £40,000. The freehold premises are included in the asking price.

Years established: 1991

Employees: The Managing Director and Company Secretary, both the shareholders, work full-time within the business. They also have an excellent team that includes a Full Time Manager, Full Time Warehouse/Delivery Operative and a pool of Part Time sales staff. All the staff have been in the industry for many years and are a real asset of this business.

Trading hours: Monday – Saturday 0930-1700 Sunday/Bank Holidays Closed The current owners work these hours by choice. It is understood that increased opening hours would result in additional revenues as the business enjoys very high footfall levels.

Property: Freehold

Location
The business is situated within large freehold premises on a busy road close to the town centre. It is a two storey building and has excellent shop frontage and good signage. Ground floor comprises large showroom with customer toilets, kitchen, office and warehouse, with a mezzanine for storage. First floor has further showroom with a small store. Outside there is a secure yard that allows parking for several cars. There is plenty of free parking in and around the surrounding roads.

Total square footage is circa 8,000 square feet inc yard. Freehold is circa £475,000. Freehold is included in the asking price. The vendor MAY consider setting up a suitable lease should a new owner not wish to purchase the building. Rates are circa £11,000 p.a.

Expansion potential
The business could easily expand its portfolio of product offerings to incorporate bedroom furniture, bed linen and other soft furnishings, as customers regularly ask whether these are available. The electric chair segment is another area for serious consideration, as it would complement the specialist electric bed market which the business already serves.

Competition / Market
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 The business still advertises regularly in local newspapers, on local radio and on two local double-decker full bus backs, but as stated earlier, there are excellent opportunities to increase this activity and utilise the very large customer database more effectively. The development of a more interactive internet presence, would enable the business to be marketed more aggressively, and tap into the lucrative online market.

Support & training
The current owners would be happy to provide full training and support at handover.

Reasons for selling
The vendors are wishing to retire.