Well established corporate and specialist clothing suppliers
Ref.AB040 Location South East Asking Price £280,000Confidential 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 would include:
Turnover I.R.O. £800,000
Gross margins between 35% to 45%
Established supplier partnerships
Opportunity to grow the business
Eighteen years of successful operation
Full logistical support, warehousing and distribution services
In-house design service plus ‘off the peg’ stock lines
Excellent reputation for quality design and production
Established, repeat client base
Training & handover available
Re-locatable business
Excellent reputation
Premium brand
Goodwill
Website
Stock | Business profile: | Having spent many years working for a number of major retailers of ‘classic clothing’ the principal director and owner of this business was one of the first to really impress upon business managers the importance of the appearance of employees in portraying a professional corporate image, helping to establish this company as a specialist in the design and production of Corporate and associated clothing. In fact you would be hard pressed to fly away on holiday, visit a theatre, museum or new property development without coming across a company representative with clothing designed by this business.
From the beginning, very personal, attentive service has been the cornerstone of this business. The staff are responsive, professional and friendly, working very closely with clients to ensure design briefs are expertly interpreted resulting in a uniform that not only reflects a business’s brand values and differentiates it from its competitors but it is also welcomed by staff. The service doesn’t just include design and production of the finished item but provides as required full logistical support including stockholding, warehousing and distribution services.
This business offers a choice of original bespoke design using custom made fabrics or high quality ‘selected from-stock’ ranges. Approximately 70% of clients have their corporate clothing specifically designed for them with the remainder opting to buy from stock lines of tailored or promotional clothing.
With an undoubted flair for design and a reputation for excellent quality, bespoke designs are made available at very competitive prices for relatively low volumes. This together with a policy to pay all suppliers promptly has allowed this business to work with the best manufacturing partners and consequently it has a client list of over 20 companies with which it has longstanding, on-going relationships.
Turnover for 2005 was around £750,000 and invoiced sales for 2006 are forecast at a similar level with gross margins close to 40%. This is an excellent opportunity to acquire an effective niche company in the Corporate Clothing sector with a good client base of major companies and high profile organisations.
Key strengths:
This is a design led business offering the highest standards of Customer care. Service is very personal and extremely attentive, with every detail, no matter how small attended to. Clients benefit from international sourcing, warehousing and distribution, flexible delivery, easy ordering and fast, accurate reporting. Its relationship with one of the UK’s leading suppliers of ‘off the peg’ Corporate wear together with its design capabilities ensures it is able to fulfil the demand from all manner of clients whatever their requirements.
After many years of operation this business has established a solid reputation in the marketplace with high levels of awareness from investment in PR. The largest contract this business has is currently worth approximately £300,000 per annum, and is for the design and supply of uniforms to thousands of employees of one of the UK’s largest travel operators. Another client is one of the UK’s leading construction groups who have recently awarded this business an order for all their site staff. With its excellent reputation as a niche supplier this business has won significant contracts that would normally be secured by much larger companies.
Key opportunities:
From the excellent reputation this business has within the marketplace for quality design and production, with a more aggressive approach to sales and marketing this business could be invited to ‘pitch’ for far more Corporate wear projects than it currently receives. With a quality customer base it has performed well over the years enjoying good returns servicing its existing clients. However, whilst this business is ‘represented’ in many business sectors with clients in the travel, property sales, retail and leisure sectors there are many other sectors – Cosmetics, Banking, Package Holidays for example, in which this business currently does not have a Client. Investment in advertising, marketing, a dedicated sales person or team, could reap a significant increase in turnover and profitability.
The largest proportion of the costs involved in any project undertaken by this business is the costs of materials and production. Although margins have been maintained and to some extent increased through the sourcing and manufacture of uniforms abroad there is always scope to reduce costs whilst still maintaining quality.
| The premises:
The business currently operates from a 800 sq ft office whose lease is due to expire early in 2007. The lease cannot be renewed due to the landlord’s redevelopment plans, and as such the business will need to relocate. Manufacturing and warehousing are both outsourced so do not occupy any of this space. Although the major Clients are based in the South East, the business could easily be run from premises anywhere within the UK. | <>Marketing and advertising:
This business does very little advertising. Without any specialist sales people the business has a built a sound reputation and built up levels of awareness within the market sectors of the existing client base. The vast majority of marketing that is undertaken takes the form of ‘smart’ PR – capitalising on topical business issues and relating them to this marketplace.
The business is currently re-designing it’s website, to provide an informative and easy to navigate site which will perform well in all of the major Search engines for all of the relevant search topics.
One of the employees is tasked with a Business Development role which includes telesales activity and which is occasionally supplemented with campaigns undertaken by a specialist telesales resource. | | | Financial profile: | | The business has a turnover in the region of £800,000, which still represents less than 1% of the total market. Business is conducted at gross margins of between 35 – 45% dependent on the type of garment and its related volume. The underlying overheads of the business are relatively low. In the past the business has run on its own money with an overdraft facility agreed, although rarely utilised. | Employees:
The principal Director for this business, also takes responsibility for the company’s design output, and is supported by a senior manager responsible for client management and the company’s IT software systems. The business employs a dedicated Account Manager and there are two other employees responsible for accounts and general administration. | Support and Training:
The Owner could be available to ensure a smooth transition of the business and to ensure a continuity of trading. Although the current Owner would prefer not to remain, there is an appreciation that there may be a requirement for an on-going involvement with new prospects or new uniform requirements of existing Clients. A limited period of Consultancy would therefore be considered subject to negotiation. | Reason for sale:
The owner and majority shareholder has decided the time has come to sell the business and pass it on to new owners to build on the solid foundations and considerable reputation the business has built. | | 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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