Supplier of good quality reclaimed interior and exterior architectural materials with very significant
e-commerce turnover
Ref.GC027 Location KentAsking Price £1,200,000Confidential offered for sale
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA | |
Asking price includes:
Projected turnover 2005/6: £1 million+
Gross profits: £400,000
Net profits: £240,000
Excellent brand development
Extensive range of on-site services
Very successful e-commerce operation
Largely unique selection of architectural artefacts and garden items
Excellent on going sourcing and supplier network
Very apt, instantly recognisable brand name
Easy to navigate, well designed web-site
Excellent opportunity to grow
Extremely lucrative margins
Domestic and export trade
Nationwide delivery service
Complete turnkey operation
Huge demand for products
Extensive customer base
Training and handover
Excellent reputation
Goodwill
Stock | Business profile: | Established in 1990 and under the stewardship of the current Owner since 1995, this business has rapidly grown to become one of the largest reclamation yards in the UK. Whilst the vast majority of businesses operating in this sector concentrate on external architectural and landscaping materials, this business is very different in specialising in interior artefacts – with customers as likely to pick up a radiator, a Georgian or Victorian fireplace or a piece of period of lighting as they are to choose from the wide range of garden statuary, gates or railings, fountains or garden furniture, plus many items made to order.
But that’s not where the advantage this business holds over its competition ends. This business also offers a wide range of additional services including everything from door and furniture stripping, grit blasting on-site or at the reclamation yard, paint spraying and the custom making of gates, railings, window boxes, fireguards, rose arches - all made to customer specification. In fact the repair and construction of just about anything made from metal including cast iron is well within the capabilities of this business.
Where this business has really made its mark however is in the development of this business as a brand – so much so that this business is now able to sell almost any ‘period’ piece – including reproduction items to its loyal and extensive customer base. Extending its core business in to this area has enabled this business to develop a very successful trade via e-commerce. Extending its customer reach significantly beyond the normal catchment area of a business of this nature – this business can boast a thriving export trade to Europe and the US – has generated significant benefits, not the least of which is in turnover, with web and telephone sales now accounting for up to 50% of total annual revenue and set to increase even further.
With a nationwide network of sourcing contacts throughout the demolition, house and garden clearance trades this business has new items arriving everyday, purchased to a firmly established rate card, to satisfy the significant demands of its customers – which include architects, interior designers, builders, landscape gardeners etc but are predominantly individuals renovating their own homes who wish to give their property instant character and great distinction at the same time.
Trading seven days a week and situated on an old fruit picking site of approximately 1 acre, including a very well presented showroom with full planning permissions, this is a very successful and fast growing business that has taken a wholly different approach to its market sector. With turnover for the current financial year projected to reach £1m generating a pre-tax net profit of £240,000, and with significant future growth, especially via the Internet, this is a very significant investment opportunity, offering excellent returns.
Key Strengths:
The key strength of this business is in its development as a brand, which has taken it well beyond almost all other businesses operating within its sector – enabling it to market almost any ‘period’ piece to its customer base. Not only does this expand the market in which this business can operate, the very clever e-commerce strategy it has developed enables it to merchandise an extensive range of goods, without necessarily carrying the stock, to a far wider target audience that would normally be available, as demonstrated by its track record of sales throughout the UK and its exports to Europe and the US. Concentrating more on home interior also widens the customer appeal – many products this business sells do not require the specialist installation skills that large exterior pieces often require.
Beyond this, this business stands out from the competition for the range of services it offers. It is highly unusual for reclamation yards to offer welding, repair, customisation, grit blasting, spray painting etc – on-site – a range of services that generate significant footfall, revenue and profitability.
Many items stocked by this business are unique and cannot be reproduced. With the continuing focus of TV on home makeovers and gardening programmes, artefacts, pieces and materials of yesteryear have never been more popular. Customers return to the business time after time to purchase products that will set their home or garden apart. This has only been achieved by the huge amount of work in establishing a network of demolition, house and garden clearance companies that represent the vital supply chain of this business.
Key Opportunities:
Although already accounting for approximately 50% of turnover, there is unlimited scope to increase on-line sales through further development of this business’s web-sites, with the business already developing a number of period domain names to further augment its rapidly increasing web sales.
A well-established customer base has been built up over many years. A vast amount of stock is already in place and whilst the business has some excellent on going relationships with suppliers throughout the UK there is always scope for more. One of the keys to the success of this business is the unique nature of much of the stock and the frequency with which new items are procured.
A further area for growth lies with the trade, with considerable scope to build a portfolio of landscapers, builders, architects, designers and associated companies who are consistently looking for original materials and unusual artefacts for use in their Client’s projects.
Export sales to Europe and particularly the United States currently represents a relatively small proportion of overall turnover and it is thought that there is considerable scope to increase what can only be described as high margin business.
A well constructed and executed marketing plan to increase awareness of the business and its products and services across all of these areas – trade and supplier, UK and export – will also help take this business on to the next stage.
| Premises:
The leasehold site occupied by this business is approximately 1.0 acre comprising a main showroom, a wood preparation/Carpenters shop, a stripping bay, welders shop, sandblasting bay and paint spraying bay. There is ample off road car parking.
The lease has a further seventeen years to run. Rent is £20,000 per year. Rates are £4,000 per annum. | <>Advertising and Marketing:
This business has invested heavily in above the line advertising, mainly radio, in the past to build awareness and establish itself within its local marketplace. It continues to advertise in the relevant ‘glossy’ magazines and some local display press ads but its current strategy is to advertise to promote its e-commerce site.
The brand name which has subsequently become the domain name for the site is in itself a very effective advertising vehicle. Search engine optimisation, a hot topic as far as the present owner is concerned, ensures the web-site is at the top of the first page of all the most popular search engines for the most appropriate keywords.
The business has a small ad in the local edition of the Yellow Pages and yell.com.
| | | Financial profile: | The business is being offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Turnover has grown steadily since the business was established. For the current financial year turnover is projected to exceed £1 million generating a gross profit of £400,000 and net profits of £240,000. | Employees:
The Managing Director/Owner is responsible for the day-to-day operation of the business supported by an Office Manager, a full-tile IT Manager and a Secretary. There are two Sales Assistants working in the Showroom, a yard foreman, two yard men, two carpenters, a welder and a driver. Two more sales staff are currently being recruited and it is thought that the e-commerce side of the business, which is growing rapidly, could benefit from two full-time staff. | Support and Training:
The owner will provide full business familiarisation, training and handover to ensure a smooth transfer of the business. | Reason for Sale:
This is a genuine retirement sale.
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