West Midlands Food Distribution Company For Sale

Business description

The company distributes cooking oils and various other products to caterers. Products include a range of ambient foods, janitorial supplies, napkins and paper products. The company also collects waste cooking oils for the biofuels industry, with current turnover in excess of 30 tonnes per week. We have four commercial vehicles operating five days per week with another two used now and again. We have three sales/admin staff, five drivers including one warehouseman and a representative. Management accounts for latest eleven months show T/O £1,300,000 and net profit of £120,000 with one month of the year to go. Having recently moved to new premises we have been able to create a trade counter that has not yet been advertised.

Property information

Property:

Leasehold

Lease terms:

A ten year lease, with a break after five years, on a commercial property goes with the business. Premises are warehouse (6,000 sq ft) plus offices at £2.90 per sq ft per year.

Location:

The business is located within easy reach of Birmingham and the West Midlands.

Other information

Expansion potential:

The potential for expansion is massive, particularly by adopting a more aggresive approach to used oil collections. The whole of the fish & chip shop market has been ignored. Many businesses now manufacture biodiesel but struggle to acquire the raw material being waste cooking oil. We have the space and raw material to begin such an operation or accomodate an existing biodiesel manufacturer.

Competition / Market:

As the business has been established for such a long time it has a strong customer base of hotels, pubs and other catering establishments. Used cooking oil is in great demand but we hold our position in a competitive market extremely well.

Support & training:

Full support will be given by the present owner.

Reasons for selling:

Retirement.

Trading hours:

8am to 4pm

Financing available:

An introduction to financial institutions who will be very pleased to help is available.

Furniture / Fixtures value:

£40,000 (included in the asking price)

Inventory / Stock value:

£50,000