Asking price: £3,500,000

Sales revenue: £2,000,000

Net profit: £220,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
This family run business trading since 2005 has shown tremendous growth and gone from strength to strength to become a leader in the market place, with little direct competition. With further growth in the natural stone and marble sector predicted, the business is in a fantastic position to capitalise on this huge market potential.

Due to very strong links with a large factory in Turkey, and well established partnerships with factories in Spain, Italy and France, the company offers a great product range at differing price points but with the highest quality standards. Directly importing Marble, Limestone, Travertine & Granite, and holding over 30,000 m2 of stock in the UK at any one time, the company can respond fast and efficiently to orders from clients large and small through-out the U.K. They also offer professional tile adhesives, grouts and sealers at trade prices

Alongside the strong relations with international suppliers, the business has developed excellent relations with a large database of clients. These include some major high-end tile and stone outlets, and a number of multi-national companies owning hundreds of outlets in the U.K.

With a huge proportion of the business supplying trade customers, namely shops, distributors and wholesalers, the income is growing from a very stable footing. There is also a proportion of online and retail business which can be developed further in the future. The company website is comprehensive and the showroom adjoining the warehouse is finished to the highest of standards to show the product range in the best light.

The turnover figures have grown from £1.65 million in yr end 2008, £2 million in yr end 2009, with current trading and future orders, showing a projected turnover of £3 million for 2010.

Equipment:

The business operates a computerised customer relationship management system, with integrated invoicing and with the accounts held on SAGE. In the office there are a number of PC’s with printers, office telephone system and fax. The warehouse is stocked to capacity, and the business leases a 3.5 tonnes fork-lift truck for stock processing. Currently the business out-sources haulage to a third party company.

Customer Service:

The business has grown rapidly due to their ability to source the highest quality product at very favourable prices. They pride themselves on showing great attention to detail for orders and customers of all sizes. They offer a very flexible service with fast turnaround from quarry to showroom at competitive prices.

Key Strengths:

Having built a foothold in the market for a number of products which the company is the main U.K. importer, the business is in a great position for future trading, with limited competition. The relations built with suppliers are very strong, this is in part due the vendors constant focus on prompt payment and communication at all times. They have managed to keep a great working relationship with al suppliers, whilst also bargaining very competitive deals, which gives the company a real edge in the marketplace.

The company has won long-term contracts with clients operating national outlets as well as a range of top quality independent shops. Along with supplying to other distributors and wholesalers, the business enjoys a high trading level, without the dependence on any one group of customers.

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.

Years established: 2005

Employees: The business is currently owned and operated by two brothers. In support, the company employs a full time office administrator, who can handle all ongoing operations whilst the vendors are away from the company. There is a part-time book-keeper, working one day per week, and a sales representative on the road who has recently joined the business. In the warehouse are 2 operatives and 1 full-time driver.

Trading hours: Monday – Friday: 8:00 am – 5: 00 pm

Property: Leasehold

Lease terms
The rent is approx £32,000 + VAT per annum, with business rates of approx £10,000 per annum.

Location
The premises are leasehold, with just over a year left to run on the current lease, with option to renew. The rent is approx £32,000 + VAT per annum, with business rates of approx £10,000 per annum.

The premises includes circa 3,500 sq ft of internal warehouse storage space, with 500 sq ft in the secure yard. Within the building there is a showroom area of approx 500, sq ft, with office space above of around the same dimensions. The offices are split into one main, office and a smaller Director’s office to the side. There are toilet facilities on site also.

Expansion potential
So far to date the company has offered limited direct retail supply, with a focus on trade. There was a wish in the early stages of development of not wanting to compete with the companies the business supplied to. The website has shown a steady stream of orders, and there is a real opportunity to expand on this, without damaging the ongoing relations. With a name built on the current products supplied mostly from Turkey, the product range carried could be increased, and there are opportunities to set-up further supply relations to wholesalers through-out the U.K. and Europe. With a number of national outlet chains left to conquer, there is potential to continue the staggering growth from a very stable position in the market.

Competition / Market
The business has been built on direct sales meetings attended by the owners. There has been limited advertising and marketing apart from the corporate website and its inherent search engine optimisation costs. With further investment, and more direct advertising, the business can move into direct retail as detailed above.

Support & training
The vendors are happy to arrange a hand-over period to assure the successful transfer of the business to new ownership.

Reasons for selling
After working hard to develop the business to the current trading levels from scratch, the vendors wish to sell the business as a growing concern to someone who can take things to the next level, whilst they focus their attentions on other business opportunities away from this sector.