Traditional Family Butcher
Ref.EJ015 Location West SussexAsking Price £ 355,000Confidential offered for sale | |
Asking price: £355,000 including freehold
Asking price includes:
Turnover for the 2006 financial year of approximately £238,000
Gross margins of £94,000
Pre-tax net operating profits of £46,200
Freehold of the retail premises and residential accommodation valued at £310,000
Established, loyal client base
Prime retail location in the shopping centre of this Sussex town
Excellent reputation - quality product, competitive prices & high levels of customer service
Almost forty years of successful trading
Excellent relationships with suppliers
Growth and expansion opportunities
High levels of customer awareness
Equipment, fixtures and fittings
Support and handover
Goodwill
Stock | | 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: | Established by the current Owner’s father almost forty years ago and located on its current retail site since the early seventies, this traditional, family run butcher is dedicated to
providing its customers with the finest quality, fresh meats and foods from all over the UK.
Occupying very well suited, freehold, retail premises which also includes residential accommodation, in the shopping centre of this lively, small Sussex town, this business offers a wide range of fresh meats, poultry and delicatessen style products. With a mainly retail customer base, though this business has some important trade customers – it provides a full catering service to restaurants, hotels, pubs, caterers and party organisers, for example, its range includes high quality produce prepared by experienced and skilled butchers using the traditional hands-on methods of hanging, butchering and preparing meat. In addition, this business offers a wide range of sausages – twenty three different varieties in all, together with burgers, bacon, gammons and seasonal selections of pre-prepared produce – marinated meats for the barbecue for example, – all freshly made by hand on the premises. The delicatessen section is equally impressive including as it does a wide range of cooked meats, cheeses, frozen fish, chutneys and jams.
In addition to providing customers with superb meat, this business is committed to providing a friendly, helpful and very individual service. As would be expected of a traditional butcher with all of the necessary skills available in house, products are cut and prepared exactly to each and every customer’s specific requirements. Not surprisingly this business is a firm favourite with its loyal customer base comprising the old and the young – drawing customers from the surrounding villages for several miles around. Such is its reputation, it has seen off its local competition of three other retail butchers which have also operated in the town throughout its many years of operation.
In an excellent position, this is the only independent butcher in the area – and has a financial performance reflecting this. Turnover for the financial year 2005/6 was £238,200 with a gross margin of approximately 40%, generating a pre-tax net operating profit of £46,200. With a freehold for the retail and residential accommodation conservatively valued at £310,000, this represents an excellent acquisition opportunity for an independent butcher in the area looking for an additional outlet or alternatively someone already employed within the trade to start out on their own. | Key strengths:
This business occupies an excellent position in the shopping centre of this small, but lively Sussex town. Well known for its good variety of independent High Street shops, the town attracts shoppers from the surrounding villages keen to take advantage of the good quality products, competitive prices but perhaps above all the personal service for which the independent retail sector is best known.
Now run by the ‘second generation’ and occupying this site since the early seventies, this is a very well established business. Operating exclusively within a fairly wide catchment area this business attracts custom from several miles around. This business has been built on providing high quality produce at a competitive price – whilst still leaving scope for good margins - and a highly personal service. This combination ensures a steady stream of loyal customers purchasing on a very regular basis.
Key opportunities:
With a strong demand for the products and service of this business and capacity to increase turnover, a new owner would contribute fresh ideas, enthusiasm and outside influence to build on an excellent base.
With the area in which this business is located set to grow significantly – up to 2,000 more houses are planned to be built within the next few years – the turnover of this business will grow organically. However there are opportunities for growth in addition. This business has never aggressively pursued the local trade. Whilst it is more than capable of servicing this sector, the business currently has just four Clients within the licensed trade together with an Old People’s Home. Clearly there is ample scope to extend this and increase turnover and profitability accordingly. | | Premises:
The business occupies freehold premises in a central position in the shopping centre of this Sussex town – surrounded by other complimentary independent retail outlets. The shop, the Ground Floor of the building is approximately 750 square feet – about half of which is given over to retail space – the remainder storage and preparation.
There is parking to the rear used for deliveries with ample customer parking to the front.
Above the shop with independent access to the rear, is a two bedroom apartment with the first floor comprising lounge and kitchen with two bedrooms, bathroom and separate WC to the second floor. There is also a patio area. This apartment is currently let on a yearly renewable lease at a monthly rent of £575.
The freeholds have recently been valued at £160,000 for the apartment and £150,000 for the retail premises.
Operating hours:
The business currently operates Mondays, Wednesdays and Saturdays from 7.00am to 1.00pm and Tuesdays, Thursdays and Fridays from 7.00am to 5.00pm. The shop is closed on Sundays. | Marketing and advertising:
Located in a prominent position in the shopping centre and benefitting from high levels of customer awareness resulting from its many years of operation, the business has little neeed of advertising.
The business is well known throughout the area, has an excellent local reputation and a strong loyal customer base, but benefits most from the most cost effective form of marketing, strong word of mouth recommendation which ensures a constant stream of customers through the door. | | | 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.
Turnover for the financial year for which figures are available was £238,200 generating gross margins of £94,000 and a net operating profit after salaries of £23,400. The freeholds are conservatively estimated to be in the region of £310,000, with the business currently receiving a rental income of approximately £6,600 from the residential accommodation. | Employees:
The Owners, a Husband and Wife team are responsible for the day to day operation of the business supported by a full time, fully trained butcher. | Support and Training:
The current Owners are happy to provide full business familiarisation and handover to ensure a smooth transfer of the business to new Owners. | Reason for Sale:
This is a genuine retirement sale. | | 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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