Garage, MOT Showroom & Fuel Business For Sale

Business description

Advent Business Sales is delighted to have been instructed to offer to the market this outstanding, extremely well established and profitable garage services and fuel sales business.

The business, which was founded in 1919, has been in the careful arms of our client for 35 years and is only now being reluctantly offered for sale as he plans to retire.

The business has four main sources of income, namely: car sales, petrol station, forecourt sales and a large workshop.

The car sales employs only one person with holiday and sickness cover provided by the workshop manager. They sell any make and model and sell on average between 4 and 5 cars per week.
The showroom can accommodate 8 cars and a further 8 can be displayed outside. They advertise extensively on the internet and in local newspapers. Sales in the year to 30th November 2007 were £556,140 with an average gross margin expected to be approximately £1,000 per vehicle sold.

The petrol station has 2 pumps and sells unleaded and diesel fuels at the rate of between 6000 and 7000 litres per week. The next nearest fuel sales competitor is approximately 4 miles away in any direction. Net sales in the last financial year amounted to £245,657 but this is expected to increase dramatically as fuel prices have risen considerably since.
Should a new purchase have any affiliation with an alternative fuel provider, they could transfer without any penalty costs. This area of the business employs 1 full time staff member who currently works a 5½ day week and 2 part time staff who each work one day over the weekend. These staff also cover the forecourt sales, which in the last year totalled £53,631 with an average gross profit of approximately 25%. They offer cigarettes and tobacco, confectionery, newspapers and magazines, greetings cards and gift wrap and general household goods.

The fourth income stream is from its workshop and MOT bay. It employs 4 full time mechanics, 3 of whom are fully qualified MOT testers and a full time service manager and they carry out an average of 10 MOT’s a day, mostly for retail customers. They are the only garage in the area with the next nearest approximately 4 miles away so have virtually a monopolistic position in the locality, which ensures a very healthy hourly rate can be achieved.

The workshop is fully equipped for purpose and includes:
- A full MOT bay
- 4 x 2 poster ramps
- 2 x 4 poster ramps
- Diagnostic computer
- CO2 tester
- MIG welder
- Wheel balancer
- Diesel smoke tester
- Tyre changer
- Oxy welder and numerous hand tools
The workshop achieved a very healthy turnover of £489,205 in the year of November 2007.

The total the business generated sales of £1,344,633 and would show to a new purchaser a net profit of approximately £126,000 before tax.

Stock at cost is in the region of £42,000.
The price is exclusive of stock at value and Net asset value of the company.

ref:8754SL

Property information

Property:

Leasehold

Lease terms:

TENURE: Leasehold
Original lease: 15 years
Remaining lease: 12 years
Review every: 5 years
Rent: £68,000 per annum

We are advised that the annual business rates are currently: £12,000

Living accommodation:

BUSINESS PREMISES The premises briefly consist of the following: - Very visible main road location. - Off road to forecourt with 2 pumps, store and till to rear. - Large car showroom with space for 8 cars, a further 8 can be parked on the forecourt - 3 ground floor offices - storeroom and kitchen - Waiting area with 4 seas - First floor office and 2 w/c’s - Large 2 bay workshop at rear with parking for approximately 20 cars.

Location:

Our client is locally located on a very busy main through road of an extremely affluent area of Berkshire. It has a virtual monopoly within an approximate 4 mile radius for the sale of fuel, car sales and garage services.

There is space on site for the parking of approximately 20 vehicles plus the showroom allocation of an additional 16 cars. Free on street parking for two hours is also available.

Other businesses nearby include estate agents, restaurants, public house, wine merchant and a hairdressers.

Other information

Expansion potential:

Our client clearly has an extremely successful business and is content with the excellent profits earned, he is aware however, there are areas in which sales and profits could be increased, namely:
1. Profits on fuel sales have always been historically low and better use of the space towards car sales would be beneficial
2. Open for car sales on Saturday afternoons and on Sunday’s
3. Expand the forecourt sales area and the stock selection
4. In addition, apply for an alcohol licence (previously held) and for the national lottery

Trading hours:

Mon – Fri: 8.00am – 5.30pm, Sat - Sun: 8.00am – 2.00pm

Financing available:

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

Related documents:

• Sales paticulars