Manufacturer and Supplier of High Street Fashion Garments
Ref.AB058 Location LondonAsking Price £3,000,000Confidential 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 includes:
Reputation for honesty, reliability and responsibility
Prominently situated in a highly accessible location
Successful range of specialised products
Circa 1,000 square foot London office area
Sales of circa £ 6,700,000 per annum
Circa 2,000 square foot office area
Trusted and respected name 1991
Excellent opportunity to grow
All fixtures and fittings
Training and handover
Established client base
Excellent premises
Company Website
Leased property
Goodwill | Business profile: | This business was founded in 1991 by the Vendor with a generous combination of innovative insight and entrepreneurial spirit, for the design, production and marketing of ladies wear and children’s wear and has grown since to become a significant enterprise with a countrywide reputation among independent and large high street retailers for the quality of its products and service, its honesty and reliability.
The UK office for this business manages the design, sales and marketing, finance, import and distribution functions. An exclusive buying agency in Istanbul and India has been created to manage production and logistics.
Production facilities exist in Turkey, India and Pakistan covering two separate operations:
• Production of jersey garments in the factory units
• Quality control, sourcing, merchandising in Turkey and India co-ordinating both in-house and CMT production
The product range now covers children’s wear including outer wear, sports wear, and fashion styles, young fashion, ladies fashion wear including the latest prints and fabrics and menswear including shirts with appliqués, embroideries, raw finish and various washes.
Due to close working relationships in Turkey the business has the advantage of sourcing/designing and developing new fabrics and prints very near to any season.
The business’s production capacity is capable of manufacturing in Turkey approximately 300,000 garments per month in out sourced factories.
The Indian operation is capable of producing 150,000 pieces per month in-house and 100,000 on a job work basis.
Deliveries are usually made within 6-8 weeks of an order being placed.
Customers rely on this business’s ability to perform and deliver consistently in the UK, Germany and the Republic of Ireland.
The business is further supported by exemplary relationships with key suppliers who have helped to ensure that the collection is never compromised and that customers are never let down. This commitment to supply chain relationships has underpinned this business’s abilities in product quality and sustained business growth.
With the benefit of comprehensive manufacturer relationships, the highest quality through key business areas has been maintained and conforms to British and European Standards where appropriate and to stringent strength and packaging test standards. The business has also maintained significant control over costs in a demanding market.
Customer Service:
The business manages major household retail customers and has the systems, processes and people to ensure that both productivity and customers’ orders are satisfied. The most important aspects of customer management and satisfaction considered by the business is honesty from which comes customer confidence and speed of supply, which combined are responsible for the business retaining many customers and the reputation for which has led to the acquisition of new customers.
The effectiveness of customer delivery is managed by customer relation’s personnel who act as the link between customer orders, concerns and requirements and the business’s storage and supply capacity, thus ensuring that there is a balance of priorities between the customer and the business.
Key Strengths:
The business is an autonomous organisation where the business owner has, over time developed and nurtured an operational team capable of overseeing business operations effectively, reducing the need for constant or daily input from the vendors. This has resulted in customer relations founded on a history of trading satisfaction and the reputation of the business’s two brands, not contingent upon the continuing presence of the vendor.
The business is well established and profitable, with a strong, large and growing customer base managed by a comprehensive and sophisticated blend of management expertise and technology. The business retains a high level of repeat business, particularly among a number of customers returning on a regular basis.
The Company is in the process of implementing a state of the art integrated supply chain management system, which would integrate its operations between U.K., India and Turkey.
The company has earned an outstanding reputation for its honesty, service, reliability, efficient job completions, excellent quality work, ability to deliver multiple product orders, cost control and highly skilled, experienced staff. All of which is driven by the strong culture of innovation within the business.
Growth and Expansion:
The current market for this business is growing and is forecast in the near and longer term for significant growth approaching 25% in the next 3 years. The business is well positioned to take maximum advantage of this growth as it occurs.
Business operations are not at maximum capacity and there remains considerable scope for an increase in operations, turnover and profit simply by gearing operations in line with current market demand.
The business is constantly innovating new products and has at this time new product revenue streams to be developed into significant contributors to turnover.
Key Opportunities:
This is an outstanding opportunity to build on the existing products, services and customer base of this business. With a strong demand for products combined with a capacity to increase turnover, a new owner contributing fresh ideas will have every advantage of building on an excellent platform.
This business maintains an extensive base of satisfied customers, who appreciate the company’s superior products and service. There are many excellent avenues for growth, especially with new products, operations capacity and market forecasts, which are showing early trends for significant growth and development.
The combined sales turnover of major clients that include household name high street retailers is over £2.0 Billion, which in terms of buying potential is over £700 Million. The Company could grow several times over by increasing its business with even its existing client base, excluding any new accounts.
Technology:
Extensive administrative and specific technical systems have been set up to provide the technology required for a modern and efficient business. There is also specialist technology including Sage accounting software.
The Company has a strong design team primarily in the UK with support personnel in Turkey and India, which enables us to work in partnership with key accounts on major launches and promotions etc. | Premises:
The business is located in one of the most accessible areas in London with its many key road transport arteries and operates from a building circa 2,000 square feet area including office storage and administrative offices. | <>Advertising and Marketing:
The business has used trade advertising in the past but has found greatest success through attendance at trade shows and exhibitions, where a significant number of orders and enquiries are taken. This activity has been supported by direct marketing of brochures and a comprehensive website to new and existing retail customers, highlighting new and existing products.
The company has a comprehensive website detailing products and services and a history of the business and its successes, there is little doubt that turnover and profits will increase through development of this medium, as it consolidates even further the business’s reputation nationally and opens the business to direct sales. | | | Financial profile: |
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendors and all interested parties under the auspices of Turner Butler.
The business is financially stable with no borrowings, low overheads, positive cash flow, enjoys a strong Order Book of circa £2,000,000, high gross and high net profit and has shown consistent growth over 15 years trading.
Sales revenue is circa £6,700,000 per annum with projected profits of around £500,000 (pre-tax). Our client feels that with a commitment to the opportunities illustrated, the business could dramatically increase its revenues. | Employees:
The business employs 6 people in the UK with 1x administrative and 1x accounting who along with the vendor are responsible for day-to-day operations. | Support and Training:
The current owner will provide all necessary training and all relevant contacts to allow continuity of trading. | Reason for Sale:
The business is for sale as result of the vendors’ wish 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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