business for sale

Retail and Domestic Laundry, Ironing and Dry Cleaning Business with Additional Home/Office Cleaning

Businesses for Sale

Sale Memorandum

Retail and Domestic Laundry, Ironing and Dry Cleaning Business with Additional Home/Office Cleaning Services


Ref.IB008

Location Derry, Northern Ireland

Asking Price £ 79,000

Confidential offered for sale

Asking price includes:

Well established retail and domestic laundry and dry cleaning business
New domestic/commercial cleaning division
Sales of circa £165,000 per annum
All plant and equipment
Excellent leasehold premises
Sales that are growing year on year
Established client/customer base
Computerised Cash Register
Fantastic opportunity to grow
Reliable specialist workforce
10 years successful trading
Excellent reputation
Good profit margins
Excellent premises
Delivery Van
Great location
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 company was established by its present owner back in 1997. The need was recognised for a professional high quality laundry, dry-cleaning and ironing company within the area which has a high volume of professional people residing there. The business quickly established itself by providing a very reliable high quality service and has since built itself an enviable reputation for providing friendly and efficient services at competitive prices.
This service is supplied by a well-established, professional and close knit team of staff who understand the importance of customer service in this competitive yet rewarding environment.

Services include laundry, dry-cleaning, ironing and collection and re-delivery. The business benefits from a very high profile location in the town and enjoys good levels of passing trade to compliment its growing regular customer base. There are many opportunities to further develop this business and it represents a very worthwhile investment opportunity.

In addition to this the company has more recently branched out into both the home and commercial cleaning services sector. This has been a natural progression aand many of the customers on the laundry and dry cleaning side of the business are also now utilising these complementary services of the business to clean their domestic and commerical residencies. This service is offered during normal hours and at evenings for commercial offices. This side of the business has been establsihed for one year and is showing strong growth month on month.

Equipment:

The company has regularly invested in good quality capital equipment on an ongoing basis allowing it to keep pace with demand and maintain standards as the business developed. This includes:

• WEYLUX INDUSTRIAL PLATFORM WEIGHING SCALES
• DRYSTREAM TOUCH SCREEN COMPUTERISED TILL SYSTEM (installed last year cost £3500) doubles as business computer
• BROTHER HL2030 PRINTER
• BROTHER T94 FAX MACHINE
• UNDERFLOOR SAFE
• ADT ALRM SYSTEM LINKED TO POLICE STATION & MONITORED BY ALARM COMPANY – 2 PANIC BUTTONS
• ROLLER SHUTTER FRONT
• INTERNAL CCTV 4 CAMERAS RECORDING DIRECT TO HARD DRIVE (£1500last year)
• SEIKO QR-375 CLOCKING SYSTEM
• 12 INDIVIDUAL STAFF LOCKERS
• 3 TEFAL STEAM GENERATOR IRONS
• HAGERTY CARPET CLEANER
• AO SMITH 200LITRE GAS OPERATED WATER HEATER
• ANDREWS 280LITRE GAS OPERATED WATER HEATER
• INDESIT 5KG DOMESTIC WASHER
• 5 SPEED QUEEN TOP LOADING 10LB WASHERS (hot water from water heater)
• 7 WHIRLPOOL TOP LOADING 15LB WASHERS (hot water as above)
• IPSO 35LB 3 PHASE WASHER (hot water as above)
• IPSO 25LB 3 PHASE WASHER (hot water as above)
• IPSO 35LB S PHASE SELF HEATING WASHER ( not installed yet)
• 9 ELECTRIC WHIRLPOOL 2OLB DRYERS
• 16 GAS WHIRLPOOL 20LB DRYERS
• SPEED QUEEN 50LB GAS DRYER
• SPEED QUEEN 25LB GAS DRYER

The business also has a small Vauxhall delivery van on a 2000 plate that is included within the sale.

Key Strengths:

• Good Infrastructure
• Reliable committed workforce
• Superb location
• Customer base
• Growth pattern
• Expansion
• New services
Growth and Expansion/ Opportunities:

There is a great opportunity to develop the commercial side of the business inline with the current domestic market the business serves so well. Because of its location the business is well positioned to develop this opportunity alongside its present domestic/retail operation within its current location. Such development would also see a parallel growth in the domestic operation. This would enable the business to fully develop its range of services and offer a complete in-house turnkey operation to meet all clients needs as it currently sub contracts the dry-cleaning element of its services out.

Collection and delivery services need to be expanded. The business currently offers a daytime service but this really needs to be expanded to offer early morning and evening pick up and drops off. This would increase revenues significantly as many of the business’s clientele are professional people.

The business could also benefit from the development of a website, together with more active sales and marketing activity in general to further increase its market exposure and increase revenues. The implementation of some form of database management would also ensure the business fully maximises the opportunities its large customer bank represents.

In addition to this the more recent development of the home and office cleaning business represents a new highly lucrative area of growth and further cements the business’s strong relationships with customers who utilise it’s many services.
Premises:
.
The business operates from a prominent retail shop well positioned on a main route within the town. The premises are leasehold with the current lease expiring in July 2008. It is understood a new lease (minimum 3 years) would be made available to the new owner. All services are connected to the building. Current rent is £24,000 per annum. However part of the building is sub-let providing incoming rental of £16,280 per annum. Rates are £5,500 per annum.

There are three floors to the building. The ground floor is occupied by the business and has an excellent shop front on the main thoroughfare with many other retailers including large supermarket close by. The ground floor is approx 3,500sq ft. The first and second floors are occupied by a gym with a separate entrance to the rear. The first floor is approx 3000 sq ft and the second floor approx 520sq ft. The rental income from the gym is £9000 per annum.

A taxi office occupies a separate section on the ground floor – again with a separate entrance at the side. The rental income from this is £7280 p.a.
The building is very secure with full alarm system, window grills, roller shutter doors and internal CCTV cameras.

Business Hours:

Monday-Friday: 0800-1800
Saturday: 0800-1700
Plus evenings for the commercial cleaning services
Advertising and Marketing:

Much of the business's revenue is a result of word of mouth recommendation, bearing strong testimony to the excellent reputation enjoyed by the business since its inceptions over 10 years ago. The business also maintains a good local profile due to its excellent location which provides good visibility and shop frontage. The business has used local newspaper advertising and mail shots in the past but is aware that a more active sales and marketing campaign, including the development of an informative website, would certainly improve sales and profitability.
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 Company currently enjoys an annual turnover of circa £165,000 per annum with excellent profit margins as you would expect from this line of business. There has been significant growth year on year and this trend is expected to continue as both the services od this company and the customer base continues to expand
Employees:

As well as the owner , who works full time within the business, the operation employs nine members of staff all of whom are employed on a part time basis.

• 3 x Ironing/Laundry Personnel
• 2 x Cleaners
• 2 x Customer Service Advisors
• 2 x Drivers
Support and Training

There will be a full and seamless handover made available to the purchaser for a period to be agreed as part of the overall negotiations
Reason for Sale:

Personal/Health Reasons.
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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