business for sale
CD products
High Quality Manufacturer and |
| Asking Price Includes Prominently situated in a highly accessible location Successful range of specialised products Extensive investment in technology Highly skilled and experienced staff Many years of successful operations Fully equipped manufacture Un patented technical know-how Trusted and respected name for over 15 years Circa 16,000 square foot operations area Large amount of equipment Established client base All fixtures and fittings Training and handover Excellent premises Substantial freehold property Goodwill |
Business profile: |
| This business was founded in a prime location in London over 15 years ago by the Vendor with a generous combination of innovative insight and entrepreneurial spirit, originally started as a distributor of cassette tapes, moving into the replication and manufacture of CDs and has grown since to become a significant enterprise with a reputation within the music and computer industries, for the quality of its products and service, its technical capability, honesty and reliability. The stated promise of this company is to constantly monitor the development of new technologies and to continue to offer customers the most competitive and comprehensive range of CD products available on the market. The plant has the latest and most advanced technology in CD replication utilising the state of the art DiscJet injection moulding machines. The control stations of the moulding machines allow operating engineers to control precisely the parameters which affect the injection moulding process such as speed, pressure, temperature and cycle times. The fully automated lines installed require minimum user intervention, ensuring the production of consistently high quality CDs in the shortest cycle times. The plant operates 12 hour shifts around the clock to meet with the most demanding customer orders and deadlines. As well as the manufacture and replication facility this business provides the highest quality 4 colour process and line colour printing, ensuring printed artwork is crisp, clear and at correct colour levels and densities. The final part of the process is also provided for customers, that being the final packaging of the CD, collated in packs with the insertion of booklets, inlays and CDs, all of which has the option of being over-wrapped in a single line operation. The business works closely with customers on special projects which might be to undertake a complete promotional package where the vision and style of the customer is paramount. It might be ensuring the complete cost effectiveness of the project even bespoke and does this through control of all of the facets of the process from manufacture through graphic design, printing and packaging. For 19 years, the business has offered customers a comprehensive range of UK manufactured CD products and has a loyal and long term customer base, some of whom have relations with the business extending as far back as the first days of production. The business is further supported by exemplary relations with key suppliers who have helped to ensure that production is never compromised and that customers are never let down. This commitment to supply chain relationships has underpinned this business’s abilities in product quality and sustained business growth. With the benefit of comprehensive manufacturing facilities, the highest quality through key business areas has been maintained and conforms to British Standards where appropriate and to stringent strength and packaging test standards. The business has also maintained significant control over costs in a demanding market. The ability of this business to grow and sustain its profitability is due in no small part, to the quality of its people. The business has a strong commitment to the development and welfare of its staff; which has contributed, alongside investment in technology, to the long term profitability of the business. Customer Service The business manages a large quantity of customers ranging from the large high street discount multiples to smaller local independent retailers and has the systems, processes and people to ensure that both productivity and customers’ orders are satisfied. The most important aspects of customer management and satisfaction considered by the business is honesty from which comes customer confidence and speed of supply, which combined are responsible for the business retaining many customers and the reputation for which has led to the acquisition of new customers. Key strengths The business is an autonomous organisation where the business owners have, over time developed and nurtured a management team capable of overseeing business operations effectively, reducing the need for constant or daily input from the vendors. This has resulted in customer relations founded on a history of trading satisfaction and not contingent upon the continuing presence of the vendors. The business is well established, with a strong, large and growing customer base managed by a comprehensive and sophisticated blend of management expertise and technology. The business retains a high level of repeat business, particularly among a number of customers returning on a regular basis. The business has the benefit of a large freehold facility currently used for warehousing and has the potential to be used as the manufacturing and administrative location for this business. The quality of the location of this business cannot be overstated since it resides in one of the highest profile and most highly regarded industrial sites in the South East and is currently undergoing substantial development and investment from high profile international businesses. The machinery and other production assets within this business are only partly along their useful productive lifecycles and have many years of high quality production capability remaining. Key opportunities This is an outstanding opportunity to build on the existing products, services and customer base of this business. With a strong demand for products combined with a capacity to increase turnover, a new owner contributing fresh ideas will have every advantage of building on an excellent platform. This business maintains an extensive base of satisfied customers, who appreciate the company’s superior products and service. There are many excellent avenues for growth, especially with new products, geographic coverage, operations capacity and market forecasts which are showing early trends for consolidated growth and development. Technology Extensive administrative and specific technical systems have been set up to provide the technology required for a modern and efficient business. There is also specialist production technology and a fully equipped graphic design studio responsible for customer projects and the maintenance and design improvements to the business’s website and marketing literature. Equipment includes: •DataDisc Starline 480 •Netstal DiscJet 600 •Full down steams •4 colour printing machines ( a variety of 3,4 and 5 colour printers)) •Heino islemann and Gima packaging machines •SADIE editing suite |
| Premises The business is located in an easily accessible area in the South East of England with its many key road transport arteries and operates from a circa 16,000 square feet area including factory, storage and administrative offices. |
| Advertising and marketing The business has used little or no advertising in the past but has found greatest success through word of mouth and customer recommendation. This activity has been supported by the production of brochures for new and existing customers, highlighting new and existing products and services. The company has a comprehensive website detailing products and services and a history of the business and its successes, there is little doubt that turnover and profits will increase through development of this medium, as it consolidates even further the business’s reputation and opens the business to direct sales. |
| Growth and Expansion With the industry showing excellent growth through consolidation potential, satisfying the ongoing demand for competitive, high quality solutions with a rapid turnaround provides an excellent opportunity for this business and those with vision and customer focus. Business operations are not at maximum capacity and there remains considerable scope for an increase in production, turnover and profit simply by gearing operations in line with current market demand. The business is constantly innovating and has at this time new product revenue streams to be developed into significant contributors to turnover. Added to this the business currently supplies to customers based in the UK and can easily be expanded to cover international markets. |
| Financial profile: |
| The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendors and all interested parties under the auspices of Turner Butler. The business is financially stable with no borrowings, low overheads, positive cash flow, enjoys a strong order Book, good gross profit and has shown consistent growth over 19 years trading. Sales revenue is circa £1,300,000 per annum and our clients feel that with a commitment to the opportunities illustrated, the business could dramatically increase its revenues. |
| Employees The business employs 8 people in total with 1 accountant, 1 chief engineer, 1 production manager, 1 printer, 1 packer, 1 fork lift operator and a loyal team of part time staff who together with the vendor are responsible for the day to day operations. |
| Support and training The current owner will provide all necessary training and all relevant contacts to allow continuity of trading. |
| Reason for sale The business is for sale as result of the vendors’ wish to retire. |
| 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 |
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