Asking price: Undisclosed

Sales revenue: £1,800,000

Net profit: £181,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
The target is a leading player within the South West of England, retailing an extensive portfolio of premium sports and surf fashion brands. They have geographically exclusive relationships to deliver exclusive clothing ranges from leading surf brands.

Starting out as a single shop in 1989 the existing owners have continued to re-invest into the target, expanding organically using internally generated cash flow and without external finance, gradually adding stores to the portfolio.

The target now operates from three high quality primary locations and a trial on line presence; presenting to market through two ‘brand’ propositions in order to target a varied audience and demographics. The locations have retail and storage capacity in locations to deliver higher quality revenue.

The total floor space is around 8,100 to retail supported by 7,400 in warehouse space (much of which is first floor over primary retail space and could be converted to additional retail space if required).

The store locations are within a geography that is becoming increasingly popular as a holiday destination. As a result the target is seeing increasing tourist footfall which is forecast to increase further.

To Financial YE January 2008 the unaudited total revenues were £1.8M with a Gross Profit of 45% and a net maintainable earnings level of around £181k.

Years established: 20+

Property: Leasehold

Location
Primary and sought after locations in busy town centre locations with increasing tourist footfall.

Expansion potential
The vendors are constantly being approached to expand the representation of additional brands and to extend the shop network. There is real potential to come from the business, however, the current owners are approaching retirement age and feel the business needs the re-invigoration that will come from a change of control. Introduction of up to date retail MIS systems to control stock and enhance cross and up selling would take the business from lifestyle control to retail science driven and deliver the opportunity to enhance revenues and gross margin levels.

Competition / Market
The vendors already have geographic exclusivity on many of the globally leading brand names, helping build and leverage brand loyalty.

Support & training
The owners are now seeking a planned exit and would be open to retention for a planned handover or continuing role (although succession planning has already been implemented).

Reasons for selling
The owners are retiring.

Financing available
The current economic situation has, of course, made access to funding a little more difficult for most people, however Equittex have direct access to a number of mainstream and alternative funding providers and partners.

Related website: www.equittex.com

Related documents

		preliminary information

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