Leading independent wholesale florist with three Interflora retail outlets across Southern England
Ref.EB016 Location Southern Home CountiesAsking Price £435,000Confidential 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:
Group turnover of approximately £845,000
Gross profits in excess of £216,000
Well established wholesale operation
Three prominently located florists in highly affluent areas including Interflora service
Customer base of 60 retailers throughout Dorset, Wiltshire and Hampshire
Wide range of fresh cut flowers, artificial flowers and sundries
Well established brand in both the wholesale and retail sector
Temperature and humidity controlled warehousing
Highly trained, professional and talented staff
Excellent management systems and processes
Websites including e-commerce facilities
Guaranteed sales via the retail operation
Significant growth opportunities
Excellent supplier relationships
Advertising and marketing
All fixtures and fittings
Training and handover
Excellent reputation
Refrigerated lorries
Leasehold premises
Goodwill | Business profile: | Established in the early eighties and under the stewardship of the current Owners for the last six years this business is a leading independent wholesale and retail florist based in central Southern England mainly servicing the Hampshire, Wiltshire and Dorset counties. This business offers an extensive range of products and services designed to meet all retail floristry requirements - top quality fresh cut flowers and foliage, artificial flowers and floral sundries to suit all occasions. To augment its wholesale offering this business also sells its products direct to the consumer through three Interflora registered outlets of its own, all situated in ideal locations in towns within easy reach from its wholesale base.
This business is passionate about flowers. Founded upon its many years of experience as a wholesale florist and working very closely with its own suppliers this business is able to provide a comprehensive service to its very loyal customer base of over sixty locally based retail outlets. Certainly not the cheapest in the market whilst still remaining competitive, this business provides an extensive range of high quality cut flowers that vary from traditional through to seasonal and exotic from its temperature and humidity controlled warehouse. Its selection is continuously expanding as new and different varieties are introduced to the market.
Well known throughout its area of operation and having deliberately been developed as a major local brand, this business specialises in the quality end of the market, ordering three times a week from its suppliers and providing its customers with flowers from all around the world, via its own refrigerated lorries. Ensuring that its products are never more than two days old when reaching the market, this business delivers to its retailers within 24 hours of an order being placed. This range of high quality fresh product is augmented by an extensive range of artificial flowers and floral sundries, including a full selection of bowls, buckets, baskets, ribbons, cellophane, message cards and spray paints as well as floral foam for every occasion.
This is a very well constructed business. A strategic decision was made at a very early stage to add the retail outlets to the core wholesale offering to ensure a base level of turnover by servicing the requirements of its own consumers as well as the retail sector. With combined turnover in excess of £845,000 for the financial year ending September 2005 and gross profits of £216,200 this represents an excellent investment opportunity for anyone looking to secure a significant foothold in the floristry sector in the central southern counties.
Premises:
Head Office:
Ideally located within easy reach of a major motorway, this well suited leasehold building, on two floors comprises an office and showroom to the front with further office accommodation to the rear. The warehouse is temperature and humidity controlled. Approximately 5,000 square feet excluding the loading area, Rent is £16948 per annum with Rates approximately £5952 per annum. The current lease has four years remaining.
Outlet 1:
Location: Occupying a prime position adjacent to the busy railway station of this historic and highly affluent town in Hampshire, this outlet benefits from significant walk in custom.
Established within the group: 2003.
Premises: A leasehold property with the Ground Floor given over to the florists. Of a modern design the property consists of a front retailing section with a rear workroom and amenity area. There is also a small office area. Additional to the workroom there is also a walk in cold store for the storage of flowers. Approximately 1700 square feet, the rent is £12,600 per annum with Rates of £3,160. There are 6 years remaining on the lease.
New sign written Citroen Berlingo van is available.
Staff: There is a Manager, supported by an Assistant, and additional part-time help as required. This outlet also employs its own drivers for delivery.
Opening hours: Monday to Friday: 9.00 am – 5.30 pm; Saturdays: 9.00 am – 1.30pm.
Turnover: approximately £200,000 per annum – split roughly 50:50 passing trade/Interflora sales.
Outlet 2:
Location: This florist occupies a prime location in this vibrant market town in Berkshire.
Established within the group: 2004
Premises: Leasehold property situated at one end of main high street. Approximately 1400 square feet covering two floors with retail area to front with downstairs workroom and storage with upper floor comprising storage, workroom, office and amenity area. Has advantage of short term parking at front of shop. Recently refurbished including new counters, work preparation and display areas. Lease at £12000 per annum has 6 years to run. Rates are £ 2035 per annum
New sign written Citroen Berlingo van is available
Staff: There is a Manager, supported by an Assistant, and additional part-time help as required. This outlet also employs its own drivers for delivery.
Opening hours: Monday to Friday: 9.00 am – 5.30 pm; Saturdays: 09.00 am – 13.30. pm
Turnover: approximately £150,000 – split roughly 25/75 passing trade / Interflora.
Outlet 3:
Location: This florist occupies a prime retail location on the very traditional High Street of this very attractive and historic small town in Hampshire. Serving a much wider area which includes one of the largest cities on the south coast, this business enjoys a high volume of passing trade.
Established within the group: 2005
Premises: A leasehold double fronted property with two entrances. The premises are currently in the process of being refurbished and cover 1900 square feet, comprising of large frontal retail area with large workroom at rear. The property also has a cellar for storage. There is also the benefit of parking at both the front and rear of the property Rent is £12,000 per annum with Rates approximately £3494. There are 9 years remaining on the lease.
Sign written 2005 Suzuki van is available
Staff: There is a Manager, supported by an Assistant, and additional part-time help as required. This outlet also employs its own drivers for delivery.
Opening hours: Monday to Friday: 9.00 am – 5.30 pm; Saturdays: 9.00 am – 4.00 pm.
Turnover: approximately £200,000 per annum – split roughly 65:35 passing trade/Interflora sales.
Customer Service:
This business appreciates that satisfied Clients return and maintains levels of product and service quality to meet that objective. The results of this commitment are evident in the degree of regular custom and the choice of this business by new customers over competitors.
With the retail outlets run autonomously – even to the extent of having no allegiance to the wholesale operation - this business does everything possible to enhance its excellent reputation in the local marketplaces in which it operates and to develop its commitment to its customers' needs providing the highest quality products and a personal, thorough and high quality service.
Key strengths:
This is a very well structured ‘trading’ business with rapid turnover. It operates on relatively high margins with processes in place to minimise wastage. The wholesale operation is ideally placed to service a retail customer base – centrally and with easy access to the major road network. Most customers can currently be easily reached within twenty minutes drive from the warehouse.
This business enjoys high levels of awareness from its very strong customer base – both on the wholesale and retail side. It has developed a very successful retail format and branding – and with a low start up investment further outlets could easily be rolled out. By adding the retail outlets this business guarantees sales via its own shops – either via ‘local’ purchases or though their Interflora links. All three outlets were acquired as going concerns and selected very carefully for their locations, prime positions and accessibility from the wholesale hub. Consequently each of the retail outlets, all of which are autonomous businesses, is situated in busy and highly affluent market areas benefiting from high levels of awareness and footfall.
This business can boast a loyal customer base – particularly on the wholesale side where many customers will hold back from purchasing from competitors who may have approached them earlier in a trading day – safe in the knowledge they will receive from this business a very high quality, fresh product at a competitive price.
A comparatively small chain this business has installed within its systems, processes and management ‘big, national chain’ initiatives. As well as generating excellent levels of business performance and management information these provide an on-going and advantageous legacy to any new Owner of the business.
Key opportunities:
This is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's products new Owners contributing fresh ideas, drive and enthusiasm will have every advantage of building on an excellent platform.
Although this business is already operating two lorry based salesmen, there is no doubt that an additional lorry based salesman would enable this business to extend its current reach by expanding into Berkshire, for example with a consequent impact on turnover and profitability. With a tried and tested formula already developed this business could also extend the retail side of the operation by adding additional quality outlets to its current chain.
There is also considerable scope to extend the dry goods and sundries side of the operation – either via the web or via a telesales based operation, which could easily be accommodated within the premises housing the wholesale operation. | | <>Advertising and marketing:
The business has built up a considerable presence in its respective marketplaces via its strong and strictly maintained corporate branding. As well as the wholesale operation each of the retail sites have their own stand alone websites which feature varying levels of e-commerce facilities and are currently being harmonised into a corporate look.
As well as the Interflora links which generate significant levels of turnover, on the retail side by far the most effective marketing is the outlets themselves – all located in very prominent retail locations and featuring very good presentations of product and therefore acting as very prominent advertising hoardings - building and maintaining awareness amongst the local target audiences.
Both sides of the business also enjoy significant word of mouth recommendations, testimony to the high regard with which this business is held in its respective marketplaces. | | | Financial profile: | The business is 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.
The business is financially stable with low overheads, positive cash flow, good gross and net profit and has shown consistent growth over the last 6 years of trading.
Sales revenue for the year end September 2005 was £846,800 generating a gross profit of £216,200. | Management:
Whilst the business is owned by a husband and wife team, only one is fully and actively involved in the day-to-day management of the operation – supported in the wholesale operation by an Order taker and Bookkeeper. In addition to the shop based staff, there are two lorry based salesmen servicing the retail customer base.
In all the business employs 25 staff. | Support and training
The current Owners will provide all necessary training and all relevant contacts to ensure a smooth transfer of the business to new Owners. | Reason for sale:
When acquiring the business in 2000, the current Owners decided to review progress after 5 years. Having built the business up to its current level the Owners believe the time is now right to pass the business on to new Owners to build upon the excellent platform that has been established which will also enable them to concentrate on other business interests. | | 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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