Asking price: £300,000

Sales revenue: £200,000

Net profit: Undisclosed

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
This unique and growing business was established in 2004 by an Australian Husband and Wife team to import specifically Natural products to the U.K. Representing some well known and established brands, the company has built excellent relationships with a number of manufacturers in Australia, and a large client base in the U.K.

Recently, they have employed a team of 6 regional business development sales representatives from the beauty sector. This team has now led to an even greater recent explosion in sales activity which means the business is ready to be taken to the next level.

From inception, the company has only concentrated on representing natural products, with the highest quality standards. They currently have a contract to import a range of creams, shampoos and conditioners by a well-known manufacturer. These products focus on delivering to clients who have sensitive skin, or skin conditions which may usually require prescription creams. They have passed stringent tests, and are fully approved for sale in the U.K. Free of chemicals, additives and irritants, with a non-greasy feel and application these skin-care products offer a real alternative for customers, with little direct competition in the U.K.

Alongside the skincare range, they also import a range of high-profile natural beauty products endorsed by celebrities, with a great profile in the media. The tanning product is number 1 in Australia, and is truly unique in its application, with a 3 hour wash and wear system. Competing in the £100 million British market, the range has made great inroads, and is continuing to win orders and recommendations. The range also includes make-up and bathing products all under the same brand.

Over the years, the business has trialed a number of different product ranges, but has reduced this to the most profitable. Due to their ongoing success, they are receiving a stream of enquires each week from other Australian manufactures looking for U.K. representation. This represents great opportunities for future growth.

The company distributes the skincare products direct to independent healthcare shops, wholesalers and direct via the website. They are currently in negotiations with some national retail outlets. The sales have continued to grow from continuous repeat orders.

The Tanning and beauty range is also sold direct, but the main promotion is via the field sales representatives to Beauty Salons nationally. With the unique application of the tanning products, the repeat orders have exploded from the marketplace.

Offering natural products only, being price competitive, and being friendly and flexible at all times in their approach to service, the company has carved out a fantastic ongoing business with exceptional potential.


Equipment:

The business operates a fully computerised ordering system, and integrated website. There are full lists of all customers, allowing for direct promotion and marketing. The operation is currently run from a small office in West London, with minimal computer equipment. Warehousing and logistics are out-sorced to a third-party in Wales.

Customer Service:

The vendors have prided themselves in exceeding customer expectations from the outset. The ordering and requests are always responded to in a timely manner by the office staff, with the flexible distribution from the third party fulfilling orders with a fast turn-around.

The company carries approximately £80-90,000 of stock at any given time, with some held by the representatives, which offers the ability to supply on demand.

Key Strengths:

The company has built an excellent name in the U.K. marketplace, and has many repeat orders and clients to keep the operation growing from a stable footing. They are attacking the market in a number of different ways, and have reduced the number of products ranges imported to focus on those that are most profitable and offer significant opportunities for growth.

The operation is streamlined with minimal overheads and all processes are in place for straight forward management of the operations.

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: 2004

Employees: The business employs the vendors as directors and ongoing management of the business. In the office in West London, there is a full-time Brand Manager and a part-time Assistant Manager, both of whom have been recruited from a high profile positions with Harvey Nicholls. They bring great brand and retail knowledge to the business. The company also employs 6 field sales representatives covering the nation.

Trading hours: Office Monday – Friday: 9:00 am – 5:00 pm The field sales team work flexible hours allowing them to meet with existing and potential clients.

Relocatable: This business can be relocated.

Location
The business is currently operated from a serviced office in Shepherds Bush, West London. The office has desk space for 3. The business has been on site for the past 2 years, with a rolling contract with 3 month notice period. The current rent is £460 per month inclusive of business rates.

Expansion potential
There is real potential to bring the skincare products to a much wider audience via a deal with a national retail chain or supermarket. For example the company has entered into negotiations with Holland and Barrett for distribution in 2010. Should this be the direction a new owner wishes to pursue, there is potential for exponential growth. The current national field sales team, are very well established, and have been in the beauty salon industry for a number of years having previously working for a major competitor. Currently between them, they are signing 50-60 new salons per month from the competition. The on-going market penetration potential is massive, with exceptional future revenue growth. Competitors in the business have sold their products direct to national retailers. The route to market could be taken by a new owner. The margins will be reduced, but the numbers obviously vastly increased. There is also real opportunity to promote the brands on offer direct to market, and expand on the direct retail and e-commerce side of the business. The company name is now so established, they have become one of the importers of choice for other Australian and New Zealand manufactures looking to enter the U.K. and Europe, which offers far reaching opportunities for the future.

Competition / Market
The business has a PR Agency on a monthly retainer to assist with constant media profiling and representation. They have received many press reviews over the years, and continue to receive endorsements. The company represents their brands at 2 exhibitions per year, and take minimal advertising. The brands represented assist with promotional material, brochures and leaflets which are sent out via mailshots, with orders, and via the sales team. The established history of the sales team that have been acquired from the competition, offers unrivalled client contact and promotion. The business receives recommendation and referral from customers, which has shown with repeat orders.

Support & training
The vendors will be available for an agreed handover period to assist in the successful transition of operations to new ownership

Reasons for selling
The vendors are devoting around 60 hours per week between them to the operation of the business, whilst holding down full-time employment, and raising a young family. As such, the business has now grown to a size where it is ready to be taken to the next level, and the vendors feel this could be best achieved by new owners with more time resources available.