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High Quality Handbags & Belts, Original designs, Hand made in Morocco High Quality Handbags & Belts,

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Sale Memorandum

High Quality
Handbags & Belts,
Original designs,
Hand made in Morocco

High Quality Handbags & Belts,
Original designs,Hand made in Morocco


Ref.AB083

Location London,West London

Asking Price £ 100,000

Confidential offered for sale

Asking Price £100,000 + SAV

Asking price includes:

Sales circa £130,000 per annum
High gross margins
Excellent customer list
Unique designs
High quality, all leather products
Goodwill
Training & Handover
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 unique business was founded by the current owner six years ago. He spotted an opportunity in the market place to design primarily handbags and belts within the UK, which are then subsequently manufactured by hand within Morocco. High quality leather and skilled hand made production techniques are used throughout the manufacturing process. This results in a fashionable product for which there is sustainable demand from UK retailers.

Most product is sold through independent reatilers or small groups, although two larger, very well known, national accounts have been secured. The company enjoys a client base of some 650 customers in total: circa 130 will be active at any one time.

Unlike many smaller companies, the business is extremely well run. Administrative processes have been thought through and implemented. Product design is well documented, through the use of ‘mood boards’ and detailed design specifications. This ensures that manufacturing quality is high and to an exacting standard.

To date all products have been geared towards the womens market, although a mens range has only just been launched.

The current owner is relocating abroad and now wishes to dispose of the business. This is therefore, a superb opportunity for an existing business looking to acquire a successful company in the UK accessories market. Similarly, an entrepreneur looking to enter the market for the first time can use these foundations to build a really successful operation.

Equipment

The company has invested heavily in IT. A full office network has been installed.

Customer Service

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

Key Strengths

The company utilises the services of a ‘freelance’ designer. This individual has much UK market experience, and produces attractive, quality designs, that can be manufactured by hand in Morocco. The business then enjoys the benefits of much lower labour costs in North Africa: gross margins are generally in excess of 60%. Circa 50% of output is represented by handbag production, the balance consisting primarily of belts, although some casual ladies shoes are also made. The UK fashion market is notoriously ‘fickle’ in terms of the designs demanded. This business is able to react speedily to changes and produce new, different products quickly. This is a real benefit.

The company only produces products in Moroccan high quality leather. This results in a UK retail pricing range of between £30 and £150.

Product is sold through retailers throughout the UK: business has also been won in Ireland.

The company operates from superb offices in a quiet area of West London, with dedicated off street parking.
Growth and Expansion

In recognition of the growing trend towards web sales, the company has recently further developed its website to offer full ‘e-commerce’ facilities. Early signs are that this will prove to be a sound strategic move.

To date, the only sales capability within the company has been the managing director. A new owner, looking to invest in this area of the business, would experience significantly increased sales with additional resources. This could be either through directly employed sales people or through the use of agents, a common practice in the industry.

Key Opportunities

The UK and Ireland have been the only markets exploited so far. There is much additional opportunity for export sales to other parts of Europe.

The recently launched mens range will open up much new sales potential.
Premises

The business occupies leasehold offices of circa 1,000 square feet, on two floors, in excellent decorative order. The passing rent and business rates are £12,000 per annum plus VAT. The lease has 4 years to run.
Advertising and Marketing

The company has always recognised the importance of marketing in the business. Advertising is placed within the trade press and occasionally in Vogue magazine. Three trade exhibitions are attended each year, two for the UK market and the other for Ireland.

All clients on the database are mailed and emailed regularly to inform them of upcoming developments.
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.

Current turnover is circa £130,000 per annum with high gross profits.
Employees

Two part time staff are employed whom address the administrative and stock/despatch needs of the business.
Support and Training

A period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership. A visit to Morocco will be arranged to meet with the manufacturers and to view the facilities.
Reason for Sale

The owner is relocating abroad and wishes to dispose of his interest in the business.
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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