Asking price: £600,000

Sales revenue: £400,000

Net profit: £80,000

Fixtures value: Undisclosed

Stock value: Undisclosed

Business description
Advent Business Sales are delighted to offer to the market this extremely well established business, which has been trading for the last 15 years.

The current vendor has now decided to sell due to retirement intentions.

The limited company is involved in the manufacturing of classic ladies stockings also known as fully fashioned ladies nylon hosiery.

Our client is the largest of five world wide manufacturers, which produce a product from a by gone age brought up to date with modern yarns.

The fully-fashioned product is knitted to the shape of the leg. This is a specialised niche product.

The business owns machinery that dates back to the 1950’s. These machines are no longer available, which provides our client with an enormous trading advantage.
Our client has purchased a dye house, which specialises in small batches. This vertical integration enables our client to be in total control of the production progress.

The vendor has also amassed a large range of spares for the machinery, which has created a self sufficient environment; especially as all the staff are fully skilled.

The product is an extremely well recognised brand, which is a quality-specialised product for the sophisticated lady, which will never be seen on department store shelves.

The stockings are of a very high quality of a very fine gauge with a labour intensive process.

60% of sales are exported predominately to America, Germany, Holland and Spain, whilst the remaining is supplied to the UK.

The majority of customers are internet based retailers supplying into the retro-fashion and fetish markets. The customers typically mark up by 200% to 300%.
All clients pay the vendor by pro forma or cash on delivery and a few within 30 days.

Sales historically have witnessed stable increases of 5% per annum, which is also projected for the next financial year. The vendor has also factored in an 11% increase in price over the next 12 months which will push net profits even higher.

Due to retirement plans, the owner has not exploited several lucrative areas.

Our client has the largest range of the other four manufacturers, and probably the largest sales and profits. This presents an excellent opportunity to acquire the competitors and to have a world wide monopoly.

Our client has ample capacity and has a reputation for never failing to deliver. Hence the customer base is naturally increasing as more and more customers turn to the owner due to his reliability and quality.
The vendor is willing to conduct an in depth hand over subject to negotiation.

The dye house has additional capacity and also processes a lot of sample sets for large hosiery companies.

This is exceptional opportunity to acquire a niche business with virtually no competition and with additional spare capacity.

An aggressive new owner could substantially increase net profits either by developing direct retail via the internet or by acquiring competitors.

Employees: The business is run in a management capacity by the husband and wife team with a further 10 staff at the factory with another two at the dye house.

Property: Leasehold

Lease terms
TENURE: Leasehold Original lease: TBC Remaining lease: TBC Review every: TBC Rent: £ We are advised that the annual business rates are currently: TBC

Location
Our client is located in the East Midlands at two separate locations being within a 10 to 15 minute drive of each other.

One of the sites is a 3300 sq ft industrial unit housing the machinery and offices, whilst the second site is a dye house of approximately 1500 sq ft specialising in small batches.

Both sites have adequate car parking facilities.

The sites are best accessed at junction 26 and junction 27 of the M1 motorway network.

Expansion potential
Firstly, a new owner could develop Internet sales direct to the public. This would substantially increase net profits if only 30% of sales were at the higher margin retail level. The business owns 3 flatbed knitting machines. By choice they only run 2. This excess capacity could be filled with more marketing. Another area is the manufacturing of medical hosiery. This market is serviced by 6 to 8 suppliers who vary from small to large companies (some of whom have sales in excess of £30 million per annum). The vendor has informed us that he has been offered a £250,000 contract for medical hosiery. Our client also owns 6 RHT knitting machines, which produce a genuine vintage article with a reinforced heel and toe. There is huge potential to service this market via the acquisition of new machines. There is vast potential to supply associated products such as suspenders, bra’s and corsets. Our client can manufacture some of the lines on existing machinery

Financing available
Please let us know if you require finance for the purchase of a business.

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