business for sale

Specialist Garment Processing and Handling Company

Businesses for Sale

Sale Memorandum

Specialist Garment Processing and Handling Company


Ref.AB043

Location Manchester,Greater Manchester

Asking Price £550,000

Confidential 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
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Asking price includes
A trusted and respected specialist company in the garment handling market
Excellent Blue Chip customer base of National High Street Retailers
Leasehold Warehouse Exceeding 80,000 square feet on four floors
2005 Anticipated Sales of circa £750,000 per annum
Controlled sales volume growing year on year
Work in progress, material stocks
Highly skilled and dedicated staff
Excellent supplier partnerships
Complete Turnkey Operation
On-going growth pattern
Training and handover
Good profit margins
Good Location
Goodwill

Business profile:

This highly successful specialist garment handling business has been established for over thirty years. It acts as a key link in the supply chain to the majority of the major national high street retailers. Operating from a bonded warehouse sealed containers of garments manufactured in the far east arrive having past through the east coast ports. Once unloaded, every item is steamed, and if necessary hand pressed prior to being bagged for delivery. Key clients demand rigid quality control and as such samples of each range are subjected to a high level inspection to ensure customer satisfaction.
This is a professionally managed, profitable and growing company with a well-established and exceptionally loyal workforce. It enjoys an excellent reputation for quality of service and superb levels of customer care.
The success is a result of the support available and the quality of the people it attracts, well-trained staff, and commitment to customer care, hard work and initiative. It thrives in being able to respond immediately to customer requirements and it is this that has created a significant client loyalty in an otherwise fickle sector. This has set it aside from the competition and allowed it to maintain good levels of profitability in an intensely competitive and volume driven market.
Quality Assurance:
A simple and straightforward policy is strictly adhered to, high quality superb customer care and a no quibble approach.

Customer Service:
Sole points of contact and close working relationships has turned customers into friends and significantly impacted on the levels of repeat business.
Key Strengths:
The company has adopted a policy of sacrificing some volume in order to maintain profit margins. This approach has allowed it to be consistent in approach and attract clients who succeed in the higher end of the retail market. Higher value garments reflect in higher levels of care not affordable to those who have sacrificed profit for volume.
A strong belief in developing client relationships across all levels of the business has resulted in a loyal and enthusiastic workforce who believe themselves to be an integral part of the business process.


Clients:
An extensive range of customers includes the majority of National High Street Retailers. The Blue chip client base gives a level of financial security and cash flow not achieved in other enterprises. This volume of business is supplemented by as many smaller contracts as required to achieve annual volume and profit objectives .
Technology:
The business has computers which are networked into the mainframe of some of their larger customers. Others are linked by the internet. This facilitates a rapid response mechanism to fulfil customer demands. A pricing model which includes labour costs and market expectations maintains profit levels for all quotations.
Internet
Electronic Data Interchange
Pressing Machines
Bagging Machines
Steam Tunnels
Premises:
The business occupies a large mill building and encompasses four floors. This unit provides approximately 80,000 square feet of space. This is a leasehold premises with an annual charge of £48,000 +VAT. There is no service charge. The existing seven year lease expires in October 2006 and has a renewal option. The business has made good use of the available space. The building is fully protected by a full alarm system.
Competition:
The business has established an excellent reputation for superior service. It has not ignored market trends, and maintains a good awareness of potential competitor threat of which there is some in the area. Their presence has been used to the advantage of this operation by capitalizing on their weaknesses.
Growth and Expansion:
There is a good opportunity to continue the successful growth of this business. A structured sales and marketing campaign and regular advertising would have a significant impact on the volumes of available quotations. Previous customers who may have been tempted away by reduced costs could be revisited to rebuild the relationships. Often the temptation of low costs has resulted in poor quality service levels and new renewed contracts can be negotiated.
The business does not advertise in any way. A structured marketing programme would inevitably result in increased business opportunities.
Financial profile:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. Sales revenue is for 2006 is anticipated to be £750,000 with a gross profit of circa 50%. Full financial information is available subject to the confidentiality being returned.
Management and Staff:
The two directors recognise that the key to success for any business lies with the personnel, to this end the Company has a skilled workforce who feel that their contribution is appreciated and valued. The Company employs thirty staff in total. The culture and values of the business are instilled in the employee by the existing staff and that honesty and integrity prevails right through the operation.
Support and Training:
A comprehensive handover is available and the time frame can be agreed as part of the sale transaction.
Reason for Sale:
The present directors have decided 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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