Renowned & Prominently Positioned
Timber Merchant with Substantial Freehold
Ref.EL003 Location YorkshireAsking Price £ 3,200,000Confidential offered for sale | |
Freehold available
Asking price includes:
Successful range of premium products and brands
Substantial operational area in excess of 3 acres
Superb main road location with parking
Sales of circa £3,500,000 per annum
Long and short term return custom
Many years of successful trading
Trusted and respected name
Unique offering in the area
Excellent profit margins
10,000 sq ft showroom
Significant Goodwill | | 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 business was founded over a Century ago and has been under current ownership for four years and has always maintained a first class reputation and has grown considerably in the last four years to become a most significant enterprise re-enforcing and growing the business’s reputation for the quality of its products, flexibility of service and reliability.
The business operates from a prime location in Yorkshire and has established itself as one of the region’s leading independent Timber Merchants to the retail and trade sectors. Many current customers have been loyal to the business for many years and this has been due in no small part to the business’s competitive prices, quality products, first class service and attention to detail.
The business has always believed in the pursuit of excellence, installing new technology, constantly reviewing and updating its service commitment and its methods of business, for example its inventory management system, ensuring that valued customers receive the very best service and quality of product.
The business has shown itself to be resilient in the face of competitive and economic forces and has maintained strong and incremental growth particularly in recent years of trading. The business is further supported by exemplary relations with key suppliers who have helped to ensure that whatever the product, service and availability is never compromised and that customers are as a result never let down. This commitment to supply chain relationships has underpinned this business’s abilities in product quality and sustained business growth.
No small part in the ability of this business to grow and sustain its profitability is due to the quality of its people. The business has a strong commitment to the development and welfare of its staff; which has contributed, alongside investment in technology, to the excellent profitability of the business and its current position as it is poised to exploit expected and significant new growth in turnover.
A key component has been customer service which is focused to a great extent on the trade desk, the place where the reputation of the business can be made or lost. Understanding this has meant that the business has prioritised this area such that it represents as much a high quality showroom for its range of products as it does being point of purchase.
The business is famous throughout the region for the quality of its timber products, and has managed to combine the provision of quality timbers with the growing demand for lesser grades and the cheaper prices that competition and customers demand. | Sawmill
The business has its own timber mill, with excellent machining facilities and offers specialised machining to match any existing pattern or special requirements. A comprehensive range of machined items are always in stock, in both softwood and hardwood.
Product range
The range includes:
•Carcassing
•Decking
•Doors & Windows
•Fencing
•Flooring
•Hardwoods
•Mouldings
•Sheet materials
•Stairs & Stair parts
•Trusses
•Worktops
All products are displayed in a crisply clean and meticulously managed, display environment of significant size and comfort, providing the customer with the fullest possible context for choice options and selection.
Customer Service
The business considers simply that happy customers come back and on that simple basis has maintained levels of product and service quality intended to best guarantee that happiness. The results of this commitment are evident in the degree of return custom and the choice of this business by new customers over competitors.
Key strengths
The business is an organisation where the vendor has, over time developed and nurtured a management team capable of overseeing business operations effectively, reducing the need for constant input from the vendor. This has resulted in customer relations founded on a history of trading satisfaction and not contingent upon the relationship with the vendor.
The quality of the location cannot be overstated since its prominence guarantees access, visibility and footfall, the quality of the premises and showroom plays no less a part in meeting customer expectation as created by the large and inviting displays.
The business is well established and very profitable, with a strong and growing customer base, retaining a high level of return custom; a great many of whom having done so on a regular basis and for many years.
The company has earned an outstanding reputation for its honesty, service, reliability, casual and open customer experience, excellent quality products and highly knowledgeable and experienced staff.
The result of this combination of strengths is a differentiation in its marketplace, allowing for the sustaining of margins at no loss to custom – a clear competitive advantage. | Growth and Expansion
The current market for this business’s products is stable 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.
Key opportunities
This is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business’s products, combined with a capacity to increase floor area, ranges, trade accounts and 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 further investment in marketing including advertising and in support of the current internet opportunities.
Technology
Administrative systems have been implemented to provide the required technology for a modern and efficient business combined with specific equipment technology in the sawmills. | Premises
The business is located in an easily accessible area in Yorkshire and operates from a circa 20,000 square feet area including showroom, storage, workshop, sawmill and administration; with a further 4,000 square feet on a mezzanine level.
The site including car parking and service yard covers an area of approximately 3 acres and is freehold. | Advertising and marketing
The business has used limited advertising in the past and there are excellent opportunities to increase this and to introduce an internet presence to market the business more aggressively and to significantly increase turnover.
The business benefits from a comprehensive website detailing all products and services and is consistent with this business’s professional presentation across the board.
A high proportion of the business's revenue has been due to its excellent reputation for quality and service and strong word of mouth recommendation. | | | 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.
The business is financially stable with no borrowings, low overheads, positive cash flow, high gross and high net profit and has shown consistent growth over 10 years of trading under current ownership.
Sales revenue is circa £3,500,000 per annum with pre-tax profits of circa £250,000 and stock levels usually maintained at a value of circa £1,500,000. The vendor feels that with investment in marketing and the expected increase in market demand combined with the opportunities indicated here, the business could dramatically increase its revenues. | Employees
The business employs a full staff of store and warehouse managers and warehouse & sales personnel who together with the vendor are responsible for the 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 a result of the vendor’s wish to follow other areas of interest. | | 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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