business for sale

Halal Meat, Asian Food & Fruit and Veg Shop

Businesses for Sale

Sale Memorandum

Halal Meat, Asian Food & Fruit and Veg Shop


Ref.EJ014

Location London, East London

Asking Price £ 1,200,000

Confidential offered for sale

Asking price £1,200,000 + SAV

Asking price includes:
Leasehold retail premises in prominent High Street location
Reputation for quality, service and price
Extensive quality range of produce
Excellent opportunity to grow
Little or no local competition
Superb supplier relationships
Regular retail customer base
Established customer base
Excellent profit margins
Training and handover
First class reputation
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:

Opened in 1995 by the current Owner this business has established itself as a firm favorite amongst its large volume of retail customers for consistently supplying quality fresh fruit and vegetables, Halal meat and a large selection of Asian and European food at competitive prices.

This business prides itself on its highly personal and friendly service and maintains high levels of customer satisfaction. Perhaps old fashioned in its approach - an approach however that is well favored by its regular customers.

The business has invested in all necessary packing; grinding and weighing machinery required for the effective and efficient production of packaged meat products, meeting all the required quality standards set down by the UK Food Standards Agency.

This is an excellent, well run business on first class margins. With turnover for the 2006 financial year of £1,800,000 generating gross profit of 35-40% this represents an excellent acquisition opportunity for anyone looking to purchase a very well established, high quality retail and greengrocer.

Equipment:

From the earliest days of trading, operations have been invested in significantly with technology and implemented to maintain the careful balance between cost and quality, providing exceptional value for money.

Customer Service:

This business is located in a prime High Street position within this busy town. It is well established within the town and has no real local competition. This business offers friendly and helpful service, quality products and competitive prices. It has developed excellent supplier relationships particularly with the local produce growers.
Key Strengths:

The business is well established and profitable, with a strong and growing customer base. The business retains a high level of repeat business, particularly among a number of customers returning on a regular basis.

The company has earned an outstanding reputation for its value for money, honesty, service, reliability, excellent quality work, cost control and highly skilled, experienced staff. All of which is driven by the strong culture of innovation and commitment to technology, within the business.
Growth and Expansion:

The current market for this business is competitive but consistent and is forecast in the near and longer term for significant growth. 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 production, turnover and profit simply by gearing operations in line with current market demand.

The business is constantly innovating and new product revenue streams can be developed into significant contributors to turnover.

Key Opportunities:

With a strong demand for this business's products, combined with a capacity to increase turnover, a new owner contributing fresh ideas and enthusiasm will have every advantage of building on an excellent platform.

There is an excellent opportunity to build on the existing base of this company by tapping into the organic, ethnic and health conscious fresh produce markets via an organic box scheme for example.
Premises:

Operating from a prime high street location this business occupies leasehold premises of approximately 7,50000 square foot of ground floor retail space, with fully fitted sales area, and 100 square foot frontage. The premises has newly fitted cold storage rooms and freezer stock rooms, meat counter and all Aisles as one would expect in a supermarket.

Rent for the premises is £34,000 per year with a further £19,000 payable for the rates per annum. There is 5 years remaining on the current lease, renewable with the local council.

Security

The premises are fully alarmed with grills and CCTV is in operation 24 hours a day.


Business Hours:

Monday – Sunday 8.00 am – 8.00 pm.
Advertising and Marketing:

By far the strongest form of marketing of this business is its premises, a prominent High Street location acting as a major advertising hoarding maintaining high levels of awareness and good footfall. The business also benefits from strong word of mouth recommendation and is frequently taken on as a key supplier to new outlets by chefs when they switch jobs.

Advertising methods include Asian TV and Radio stations which is very effective within the Asian community.
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 2006 financial year was £1,800,000 generating gross profit of 35-40%.
Employees:

The business employs 18 part time sales assistants including four Butchers, plus the Vendor who is responsible for the day-to-day operations.
Support and Training:

Full support and training will be provided to the successful purchaser if required.
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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