business for sale

Specialist Stone Finishing Building Products: Superb Development Potential

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Sale Memorandum

Specialist Stone Finishing Building Products:
Superb Development Potential


Ref.GB060

Location London,West London

Asking Price £ 195,000

Confidential offered for sale

Asking price includes:

Turnover circa £250,000
Gross profit circa 60%
Net profit circa 20%
Trade and consumer clientele
Fast growth market
Training & Handover
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 specialist business was established by the current owner in 1989, who spotted a trend developing in the construction industry for the use of natural and reconstituted stone products. This trend has continued and now these products are utilised in many aspects of construction including main buildings and gardens and as wall furniture.

The company benefits from two major markets which are broadly broken down into trade and consumer. There are circa 200 trade customers primarily made up of national house builders and larger construction companies, smaller builders and landscape gardeners. From a comfort perspective no single client generates more than 10% of annual sales. In any one year circa 500 consumer customers will purchase products and services.

As this market has matured, it has also polarised into the two separate sub markets of natural and reconstituted stone. Current sales are broken down as follows:

• Natural Stone – 10% of sales
• Reconstituted Stone – 90% of sales

The company sources natural stone and manufactured reconstituted products to suit almost any building requirement including:

• Gable features
• Corbels
• Window sub cills and surrounds
• Mullions and jambs
• Entrance surrounds
• Cornices
• Columns
• Porches and porticos
• Balustrading

In the garden market the following products are supplied:

• Steps
• Pool surrounds
• Jardinieres
• Pedestal and plinths

The following wall furniture is supplied:

• Pier caps
• Wall coping
• Decorative finials
• Piers
• Name plaques
• Buttresses

Almost any design can be manufactured to order upon the submission of accurate drawings and specifications.

The company purchases the majority of reconstituted stone products from one supplier with whom a close working relationship exists. Natural stone products are sourced from three or more suppliers.

The company provides full installation services for all products sold through a separate limited company.

The wish to retire creates a rare opportunity for a new, knowledgeable owner/investment team to take this solid business on to the next level. There are considerable opportunities for expanding the company's revenues and profits within the existing customer base as well as through marketing efforts targeting new prospects.
Customer Service

The highest levels of personal service sit at the heart of the company’s customer engagement strategy.

Key Strengths

In the eighteen years of operation the company has developed a first class reputation as a reliable supplier of quality products which are well designed. A sound knowledge of current UK Building Regulations ensures that products meet the latest legislative requirements.

The company displays a demonstrable ‘easy to do business with’ attitude. This in turn generates much new business through referrals and ‘word of mouth’ recommendation.

Whilst the business can be relocated easily, a low cost light industrial unit or yard will be an ideal location, thereby keeping overheads to a minimum.

All products to consumers are sold on a ‘cash in advance’ basis, meaning that there is no bad debt.

Growth and Expansion

A new owner with renewed vigour and investment funds will be able to readily drive growth within the business by the recruitment of a small sales team, probably of initially one person, to directly target new sales opportunities. Additional sales activity through direct mail, email shots and leaflets will also generate new sales.
Premises

The company is currently run from premises adjacent to the owner’s home. The business would therefore need to be relocated after an agreed length of time.


Business Hours

Business hours are currently:

Monday to Friday 8am top 5.30pm
Advertising and Marketing

The current owner has always recognised the importance of marketing within the business. Currently advertisements are placed in twelve areas of Yellow Pages™. Recently a new professionally designed, hosted and maintained website has been launched which serves as the main ‘shop window’ to the business.

A new owner would additionally benefit from the development and execution of a strategic marketing plan addressing all media activities.
Financial profile:
The business is being offered for sale on an ongoing 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 and net margins and has enjoyed consistent performance since trading begun. The current turnover is circa £250,000 per annum.
Employees

The business is very effectively run by the current owner, his partner and a part time bookkeeper.
Support and Training

Unusually, an extended period of handover, training and familiarisation will be provided to ensure a smooth transition to new ownership.
Reason for Sale

This is a genuine retirement sale. A stage has been reached where the owner wishes to retire and is offering the business for sale not only as an organically expanding going concern but with further significant growth potential.
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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