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Specialist Flooring Supplier

Exhibitions, Contract & Retail

Ref. AG146

Location : South Wales

Asking Price : £960,000

Turnover : £1,089,000

Net Profit : Undeclared

Gross Profit : £618,000

EBITDA : £241,000

Net Asset : £520,000

Premises : Freehold

Confidentially offered for sale


  • Turner Butler

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Asking price: £960,000 + Net Assets

Net Assets circa £520,000 (inc. freehold, stock, vehicles, equipment)

Asking price includes:

Year End 31/08/2016 Turnover circa £1,089,000

Year End 31/08/2016 Gross Profit circa £618,000

Year End 31/08/2016 EBITDA circa £241,000 (Before Drawings)

Established and well-known with many loyal customers

High profile modern premises 

Over 30 years successful trading

Ran under management

Handover and training

Strong relations with key suppliers

Ideal “bolt on” opportunity

Ready for investment and development

Goodwill

Business Profile

This well known and successful business was founded by the vendor in 1985 and was in response to noticing an opportunity to supply and fit contract floor coverings to the exhibition industry and to add value and generate secondary revenues by re-selling the previously supplied and used carpets back to commercial contract and exhibition customers, looking for savings.

The essential character of this business is illustrated in the novel way that its commercial, business to business activities in supplying and fitting exhibition and contract flooring is combined with its retail activities through its freehold premises on a busy and popular trading estate near one of South Wales best known Cities.

These retail activities account for circa 26% of overall turnover and is a growing & reliable cash-flow positive contributor to the business’ financial performance.

This format has remained unchanged since 1985 and has proven to be both highly profitable and sustainable as a business model; the business continues today as it always has, following this reliable format.

The company makes a wide choice of coverings available for hire or sale, including exhibition cord carpet, velour’s, artificial grass and kitchen flooring to exhibition halls, marquees and other venues which require temporary flooring. The business offers a rapid, reliable and personal service and employs highly trained and skilled carpet fitters. It is for these reasons that so many of customers have stayed loyal to the business year after year.

The business has benefitted from much investment by the current owner and is a testament to the positive financial outlook for the company, which is limited only by the owners’ desire to grow and diversify.

The business has a very well earned reputation, which is a great asset to the business. All operations are streamlined with low overheads. The customer base is diversified enough to give stability to future earnings with sales spread across them and have been loyal over the years, which provides much confidence in future earnings from which to build.

Equipment:

The company has the benefit of modern tools to enable highly customisable products for customers.

Customer Service:

The exhibition and contract flooring side of the business is managed with the highest customer service quality levels and is backed by ESSA standards of supply.

Whilst competing in the market with some major retailers in carpets and floor coverings, the company has carved out and developed a niche with loyal local customers and retails its products in a welcoming showroom environment within the larger part of the business’ commercial operations. This is not only due to the custom nature of the company’s products but also competitive pricing and a focus on sourcing key quality products, of the widest possible variety that are used in the final customized fitting, along with friendly, knowledgeable and professional service at all times.

Key Strengths:

• Reputation – Niche, well known and respected in the industry
• Knowledge – Key staff
• Product quality – Product integrity paramount at the highest levels of performance
• Service – Always highest quality
• Variety – Widest selection of floor coverings available
• Re-sale – Additional margin generated from the resale of commercially used and reclaimed floor coverings
• Marketing & advertising – The business is very sophisticated in its use of promotional activities to drive
business
• Costs control – No stone is left unturned in the quest for control over costs and the elimination of waste
• Culture – The employees are all committed and have been trained by the company and are steeped in these key aspects and company strengths

Critically the marketing and reputation are responsible for maintaining goodwill, driving referrals, repeat custom and new sales.

Financial Information:

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.

Year End 31/08/2016 Turnover circa £1,089,000
Year End 31/08/2016 Gross Profit circa £618,000
Year End 31/08/2016 EBITDA circa £241,000 (Before Drawings)
Net Assets circa £520,000 (inc. freehold, stock, vehicles, equipment)

Asking Price:

The Asking Price of £960,000 plus net assets is for 100% of the issued capital of the company, assuming Net Assets of c£450,000 on completion (calculated on a zero cash-zero debt basis). The final selling price will have a £1 for £1 adjustment for any rise or fall in this benchmark Net Asset figure of £450,000 at completion.

Advertising and Marketing:

The business advertises on Google and has a fully comprehensive website which details the current catalogue & product line and also all available accessories.

The business also sponsors local road junction roundabouts which in combination with local interest magazines, creates awareness and footfall in the retail part of the business.

For the larger part of the business which is exhibition floorcoverings, the business takes advertising space in well known and well subscribed to, trade magazines.

Growth and Expansion Opportunities:

The business operates very much within the scope of the vendors’ self-imposed limits and could grow rapidly by expanding the business reputation into a better known brand by means of a determined investment in marketing, advertising, and typical brand building techniques.

It is believed by the vendors that the current levels of marketing commitment have touched only a small part of the company’s potential in the UK, particularly in relation to the demand for discounted used floor coverings for the commercial sector.

Premises:

The business operates from two storey showroom, warehouse, workshop and office premises on a busy, trading estate in a building of circa 10,000 square feet to include: office mezzanine of circa 300 square feet, storage, workshop, showroom area and kitchen & toilet facilities and circa 2,500 square feet frontage for parking.

The premises benefit from a comprehensive security system with alarm and CCTV cameras protecting people, premises and goods within the estate.

The premises are currently freehold and in the ownership of the company; the freehold is available or a new lease could be assigned. Annual rates are circa £9,000.00 per annum.

Business Hours:

Monday, Tuesday, Wednesday, Thursday Friday: 9:00 am - 5:00 pm
Saturday:10:00am – 4:00pm

Employees:

The vendor is responsible for day to day running of the business and is ably assisted by a team of eight full time and two part time employees:

1x Sales/Operations Manager
5x Carpet/Flooring fitters
1x apprentice
1x Retail Sales Manager
2x Part Time Office Administrators

Support and Training:

The owners are happy to provide training for an agreed handover period.

Reason for Sale:

The vendor believes that the time is right to pass the opportunity to a new owner for full and proper exploitation of the opportunities for growth, to come.

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

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 Butler
Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 01895 25 6000 Facsimile 01895 678532
info@turnerbutler.co.uk
www.turnerbutler.co.uk