business for sale

Profitable Dry Cleaning Business: Superb further development potential

Businesses for Sale

Sale Memorandum

Profitable Dry Cleaning Business:
Superb further development potential


Ref.AP009

Location London, West London

Asking Price £ 75,000

Confidential offered for sale

Asking price includes:

Turnover circa £80,000 per annum
High gross margins
Modern equipment
Busy high street location
Ample free & cheap parking nearby
Regular clientele
Goodwill
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA

Business profile:

This successful dry cleaning business was originally established in the current location by the previous owners in 1974 and was sold to the current owners circa two years ago. It is now a cash generative, profitable business with a turnover of circa £80,000 per annum. The business would be ideal for a new entrepreneur looking for his first venture, or an established dry cleaners looking for an additional retail location.

Located in a busy high street location in West London and within close proximity to Heathrow Airport, the business is well established and offers complete clothes and textile care, including duvets, rugs, curtains and bedspreads. The business takes great pride in offering a high standard of work, whilst still being able to offer competitive prices.

The premises are located adjacent to Iceland and Aldi Supermarkets and very close to Tesco. Free and cheap parking is close by.

Equipment

Twelve months ago the business invested in the latest Union XL835E, computer controlled dry cleaning machine. This state of the art equipment provides for the best possible cleaning results, with the lowest operating cost and the greatest levels of safe usage. The machine was purchased at a cost of £15,000.

Customer Service

The highest levels of personal service sit at the heart of the business’s customer facing strategy e.g. a suit cover is provided to all customers cleaning two or three piece suits.

Key Strengths

The business enjoys the benefits of very limited competition, and is very much regarded as the dry cleaner of choice in its locale – a busy high street location. More than 250 regular customers are serviced, and this number is increasing significantly. Since no formal marketing has been undertaken to date, all new business is generated through ‘word of mouth’ recommendation.

The full range of dry cleaning services is provided. All delicates including wedding dresses are cleaned in house. Specialist cleaning of leather and suede is undertaken by a third party with a similar commitment to customer care. The in house alteration service is growing in popularity. Part of the premises is sublet to a laundry operation, which also provides services for the business. The equipment utilised in the laundry is owned by this business and has been newly purchased.

Six external contracts are serviced. These provide pick up and delivery services for local offices, an hotel and a launderette.
Premises

The business occupies modern leasehold premises. The current lease has more than eight years to run, with a rent review in 2010. The passing rent is £10,000 per annum with business rates of circa £2,500 per annum.

Business Hours

The current business hours are:

Monday to Saturday 8.00am to 5.30pm
Advertising and Marketing

This business has the potential to grow significantly in the next twelve to eighteen months. To support the growth drive, the business needs the development and execution of a strategic marketing plan addressing all media. A website would be a useful additional tool.
Financial profile:
The business is being offered for sale on a going concern basis. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business is financially stable with no borrowing, high gross margins and has shown consistent growth since trading begun. The current turnover is circa £80,000 per annum.
Employees

Three people are employed full time within the business. This consists of the two owners and a presser.
Support and Training

The current owners are prepared to agree to a period of training, handover and familiarisation. This will ensure a smooth transition to new ownership.
Reason for Sale

The current owners are looking to dispose of their interest in the business to enable them to concentrate on other activities.
Turner Butler Disclosure Statement:

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006

Next steps

If you are interested in finding out more about this business please:

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  4. We will contact you and put you in touch with the seller of the business.

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