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Highly Profitable Specialist Italian Food & Drinks Retailer &Wholesale Business

Ref. AF175

Location : Bedfordshire

Asking Price : £450,000

Turnover : £1,780,204

Net Profit : Undeclared

Gross Profit : £320,598

EBITDA : £128,946

Net Asset : £400,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Asking price: £450,000 (ONO) Plus SAV

Leasehold

Asking price includes:

2016 Turnover circa £1,780,204
Gross Profit circa £320,598
EBITDA pre drawings of £128,946
Stock estimated at £200-400,000

Long-established and well known business with many loyal customers
Historic High Revenues
Well-run business operations with excellent premises
Strong relations with numerous international suppliers
Key focus on Independent Restaurants and Retailers
Goodwill

Business Profile

The business is a supplier of Italian wholesale food and drink produce primarily to independent restaurants and retail outlets. The goods are also available for retail to the general public. The split between wholesale and retail is approximately 50/50.

Customers are located along the M1 corridor between Northampton and North London with the majority of customers paying cash on delivery.

This is a very well located business with a large stock area, a bakery, and a coffee retail and trade counter. The bakery was added quite recently and is managed by a specialist baker from a specific area of Italy, well known for its bread and pastries.

The premises also contain a separate apartment and an office suite.

Goods are sourced from specific regional areas of Italy that are highly regarded for the quality of the local food and provides an “authentic” Italian food & drink experience for the customers.

Maintaining these high value business relationships with the Italian regional suppliers has enabled this business to establish a truly enviable reputation among the restauranteurs and retailers that form its community of customers, being one of consummate quality.

Particularly prized are the stories that accompany the sourcing of particular products, which is then passed on to the consumer by the retailer.

The business benefits from investment by the current owner and is a testament to the positive financial outlook for the company. Growth is limited only by the owner’s decision to supply to certain geographic areas.

The business has a long standing history and reputation, which is a great asset to the company. All operations are streamlined with low overheads. The customer base is diversified enough to give stability to future earnings. Revenues are spread across this loyal customer base and provides confidence for future earnings and growth.

Equipment:

The business is operated with a computerised back-office system to process all financial accounts and client records. There are two trade counters and an up to date EPOS system. The premises have a comprehensive pallet storage system and fork lift vehicles to manage movement of product in this area. Orders are delivered via the company delivery van.

Customer Service:

Whilst competing in the market with some major national food wholesalers, the company has carved out and retains a niche band of  loyal customers who receive a friendly, knowledgeable and professional service at all times. Excellent customer service is supported with competitive pricing and the focus on sourcing key quality produce.

Key Strengths:

A valuable asset is the relationship that the business has with many of the high quality suppliers in Italy, this is a prized differentiator for this business since it guarantees the continuing supply of in-demand products and is also responsible for stimulating interest in a variety of new products.

Financial Information:

The business is being offered as an asset and goodwill 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.

2016 Turnover circa £1,780,204
Gross Profit circa £320,598
EBITDA pre drawings of £128,946
Stock estimated at £200-400,000

Advertising and Marketing:

The business was originally built on a direct sales approach with site visits to gain new customers, however, over time business has been increased from ‘word of mouth’ recommendation and referral. The business would benefit from a defined marketing campaign but does have an attractive website presence, which could be expanded to include on-line ordering facilities.

Growth and Expansion Opportunities:

The business operates very much within the scope of the vendor’s self-imposed limits and could grow rapidly by expanding sales to other parts of the supply area; further into London, around the M25 and further North along the M1. A great measure of growth can be accommodated by the space within the business’ current premises.

The vendor is soon to add a second shift to accommodate demand for the bakery and a pizza oven has added to revenues.

The vendor believes that the core wholesaling activities of the business could be increased by as much as 90% within the current facility. Furthermore the opportunity to add an e-tailing arm to the business is very significant.

Premises:

The business operates from comprehensive and well invested premises close to major trunk roads with easy access to the M1 motorway.

The ground floor of the premises are circa 9,000 sq. ft. with a mezzanine of circa 2,200 sq. ft. incorporating a 2-bed apartment, an office, trade counter, delicatessen, the new bakery, and a cold store with capacity for 30x pallets. There is capacity for 800x pallets in the main storage area. The vendor has invested circa £280,000 in the premises over the last 3 years.

The bakery is a recent addition and is kitted out with brand new equipment and also has room for expansion. Another new popular add on is the outside retail coffee area where customers and visitors can sample much of the available produce.

The premises benefits from a comprehensive security system with full response alarm and 16x CCTV cameras protecting people, premises and goods both inside and outside the building.

The premises are currently leasehold. Annual rent is circa £25,000 and rates are circa £22,000 per annum.

Business Hours:

Monday – Friday: 8:00 am - 5:00 pm
Saturday: 9:00am - 5:00pm
Sunday: 10:00am - 3:00pm

Employees:

The vendor is responsible for all day-today management, operations and business administration, and is supported by four full time employees:

Delicatessen assistant, baker, kitchen assistant, Stockroom assistant, order assistant and delivery team.

Support and Training:

The owner is happy to provide training for an agreed handover period.

Reason for Sale:

The vendor is now approaching retirement.

Looking for finance ?

If you are looking for finance to fund your business purchase then we recommend that you talk with our independent finance broker. Because of his many years working at a senior level for a major high street bank he has had more success with finance applications than anyone else we know. He has helped numerous purchasers of businesses that we are selling, including buyers who have been turned down by their own bank! Call us today on 0800 046 1652 or email us at finance@turnerbutler.co.uk

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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

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Turner Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 25 7777
info@turnerbutler.co.uk
www.turnerbutler.co.uk