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Kitchen Company With 40 Years History For Sale

Livingston, West Lothian
Asking Price:
£125,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
£500K - £1M
Cash Flow:

Business for sale

Due to the pending retirement of the owners after exactly 40 years of highly successful trading, this kitchen company is now being offered for sale.
The solid gold reputation that has been built up over 4 decades means that only negligible advertising costs are borne as 95% of the showroom traffic from which we generate sales leads is through word of mouth recommendations.
The business manufactures its own brand carcase from its factory base in Central Scotland which reduces the cost to buy to a minimum and therefore maximises margins.
Our 500 sq ft fully fitted out showroom is situated within the same factory unit as the production facility and runs efficiently with minimal staff levels and therefore low salary costs.
The sales and installations are currently carried out by one of the directors along with other full time experienced installation staff and sub contractors that are reliable and have worked as a team with us for many years to create many thousands of satisfied customers.
Rent level is very low at under £8K p.a. and business rates are currently zero due to small business rate relief.
Lease renewal on our premises is due in just 1 year which due to the landlord being the council should not be a problem either in renewing it nor in any large rent increase come renewal and equally the opportunity to relocate is also then an option should there be any expansion plans by the new owner.
A pristinely kept 3 year old Transit Trend van has just been passed from a lease agreement to ownership by the company so this van valued at £11500 is now an asset.
This business would be a perfect fit for an experienced kitchen fitter that may wish to become more than a solo sub contractor to a large kitchen company and even better for a husband and wife team exactly as this business was run for the majority of the 40 years of its existence.
The figure of £100,000 nett profit showing in the advert as "cash flow " is from the last set of accurate accounts for trading year 15-16 with the current years management accounts that have still to go through the chartered accountants processes in the next few weeks showing a similar but slightly lower figure. This figure includes £33K of director salaries so in effect the actual obtainbale profit by the new owner generating a similar turnover and margins would this year have been over £130K.
The asking price of £125K can easily be recouped well within 2 years trading and this business was valued in early 2016 by one of the UK's largest business brokers at over £500K and trading during the 2 years since then has been of a similar level of profitability.
Our average single sale is £15,000 and the business currently manufactures and installs approximately 35 medium to large sized kitchens per year which is very easy to obtain.
We have traditionally also manufactured and sold fitted bedrooms but in the past 2 years have simply been too busy with kitchen installations to undertake any further bedroom work and as such have had to decline to tender for those clients but of course there is significant room to expand in this area with a large archived client base of kitchen customers that could be marketed to for a new bedroom.
We believe that knowledge of the kitchen industry is an essential requisite of any potential buyer so please don't make enquiries if you do not have any experience in this sector.
At the time of placing this advert on 6th October we have an order book in excess of £100K and are almost fully booked till the end of the year such is the demand for our products and services.
Golden opportunities such as this do not often present themselves and as such expect a significant volume of enquiries from those who have the vision to see a good business for sale.
If you have an in depth knowledge of the kitchen industry, are prepared to work your socks off and as a reward earn in excess of £100K per year then this could be exactly what you are looking for.

More information available upon request, please contact seller below for further details.

Property information



Lease Terms:

Expires end of 2018. Easy to renew with council landlord.

Leasehold Rent:

£7,700 per annum


Small light industrial complex of 10 units several of which are retail.

Premises Details:

Factory unit

Size in square feet:

Business Operation

Expansion Potential:

The bedroom Part of the company has not been used in the past 2 years because of the demand for our kitchen services so this area can be explored and expanded into. Supply only Kitchens also are an area for expansion which we have not been able to take advantage of forthe same reason.

Competition / Market:

Local competition is low with only a small number of kitchen specialists in the area. Nearest large competitor is 12 miles away.

Reasons for selling:

Retirement of 2 senior directors

Trading hours:

Weekdays 10-4 Saturday 11-4 closed Wednesdays and Sunday

1 part time, 2 full time & 3 directors
Years established:

Other Information

Support & training:

Assistance in the showroom can be offered for 3 months.

Furniture / Fixtures value:
£15,000 - included in the asking price
Inventory / Stock value:
£5,000 - included in the asking price
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