Montessori Nursery School
Established and highly subscribed with exceptional demand
Children aged 6 months to 5 years
100 place capacity
Location : Greater London (North)
Asking Price : £1,300,000 plus net assets
Turnover : £697,000
Net Profit : £340,000
Gross Profit : £671,000
EBITDA : Undeclared
Net Asset : £573,000
Premises : Leasehold
Confidentially offered for sale
Turnover 2018 circa £697,000 p.a.
Gross Profit circa £671,000 p.a.
Adjusted Pre Tax Net Profit circa £340,000 p.a.
Net Asset value circa £573,000 of which £738k is cash
Very well established since 2005
Motivated, trusted staff
Excellent customer relationships
Circa 100 pre registrations for next school year
The company has been in business since 2005 and is an established nursery school for children between the ages of 6 months to 5 years and is managed stringently within the Montessori framework for early year’s education. The business has a well established reputation and demand is growing month by month – the vendor has created a highly stimulating, enjoyable and rewarding environment for the children who attend and this is very much reflected in the high praise that it attracts.
“Staff effectively impliment the requirements of the Early Years Foundation Stage, as well as using the Montessori philosophy, which they deliver to an exceptional standard. The quality of teaching is of an extremely high standard, which is reflected in the children s free play as they actively put into practice the skills they are learning." OFSTED
The business is well structured with an excellent trading history and repeat customer base showing continuous profit.
The owner has previously owned and managed a successful nursery school in Leicestershire and upon relocating to North London, chose to establish a nursery school on the Montessori methodology and since its foundation in 2005 has gone from strength to strength.
Health issues have now caused the owner to consider her personal situation and she believes that the best interests of the school and the children would be best served by passing the business to a new owner with the energy and drive to take advantage of this growing business and it’s potential.
The business is profitable with no bad debts and offers a highly competitive service.
All necessary equipment is in place that is required to run a successful operation and a full inventory of the equipment is available to all genuinely interested parties.
The company is experiencing a constant demand from parents.
Key curriculum components of this Montessori nursery school include:
Personal, Social and Emotional Development
Children develop a positive sense of themselves, and others; to form positive relationships and develop respect for each other; to develop social skills and learn to manage their feelings; to understand appropriate behaviour in groups; and to have confidence in their own abilities. Through role-play children build relationships with their peers and learn to share and take turns. Through Practical Life exercises children develop independence, self-control, self-awareness and confidence.
Children are active and interactive building on their gross and fine motor skills; develop their co-ordination, control and movement. Children learn to understand the importance of physical activity and to make healthy choices in relation to food and their well-being.
Communication and Language Development
Children are given opportunities to experience a rich language environment; to develop their confidence and skills in expressing themselves and to speak, listen and understand in a range of situations.
Children are encouraged to link sounds and letters and begin to read and write. Children have opportunities to access a wide range of reading materials such as books, poems and other written materials to ignite their interest. Through Montessori language materials children work through specific hands-on and tactile materials such as the sandpaper letters to the moveable alphabet.
Children learn to develop their skills in counting, understanding and using numbers, calculating simple addition and subtraction problems; and to describe shapes, spaces and measures. Hands-on materials such as number rods, sandpaper numbers, number boards, spindle box, builds on the child s mathematical skills.
Understanding the World
To promote understanding of their own world the children are encouraged to look closely at similarities, differences, patterns and change. This is done through their topics. The children also get involved with simple experiments to promote their understanding of science and the environment. Awareness of other cultures and beliefs and of the environment is predominant in all our activities.
Expressive Arts and Design Development
Children are introduced to wide range of experiences to bring out their creative expressions. Music, action songs, dancing, simple drama, arts, crafts and imaginative play to enhance and develop their creative skills.
Extra curricular activities
The nursery provides Music and Movement, French lessons, Cooking and Computer classes together with ballet and yoga with professional teachers.
Parents in the North London community in which the school and their homes are located.
The business uses QuickBooks software for managing accounts, payroll and invoicing. The company has an attractive and informative website with all the information a prospective parent would need.
Customer service is the top priority; the team provides the highest quality of service. The company is OFSTED registered and uses methods consistent with best practice and the Montessori method for early years education.
This is a well-run, responsible and reliable business that has a history of continual growth and profits due to the professional and efficient approach to business and the quality of trust that customers show this business and its staff.
The business is consistently profitable.
Demand for the company’s services exceeds its ability to supply by a very large margin.
The business’ location and facilities could not be over estimated; the nursery building is a recently renovated civic premises with excellent scale and room for growth, it is of the highest quality of build, fit & finish and is a key selling point when discussing the school with parents and children.
The location is similarly beneficial as the school sits in a very affluent area of North London where the high demands that are placed on business services in the locality are significant but when met, attract very good margins.
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 has achieved a history of excellent turnover and profits over the years.
Turnover 2018 circa £697,000 p.a.
Gross Profit circa £671,000 p.a.
Adjusted Pre Tax Net Profit circa £340,000 p.a.
Net Asset value circa £573,000
The Asking Price of £1,300,000 plus net assets is for 100% of the issued capital of the company, assuming Net Assets of circa £573,000 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 £573,000 at completion. (Within the Net Asset value is c£738k of cash.)
A complete asset list is available.
The business does not carry out formal advertising or marketing activities and has profited from strong word of mouth referrals and recommendations among prior parents and local schools.
The business is easy to run as the owner has built up an infrastructure to ensure a smooth operation. Sound foundations have been laid to accommodate future growth that could be achieved with a new owner more inclined to accept the increased work demand that growth requires.
Possible areas for growth include:
Exploit capacity and take on more children
Extend weeks of operation
Longer hours 7-7
Increase in fees.
The business is located in a recently refurbished Church Hall with outstanding facilities both inside and outside and comprises:
6 rooms: large 1st floor hall, office, babies room, unused room, ground floor hall and well equipped kitchen.
The premises are held on a 7 year lease commencing in 2013 with automatic rights of renewal under the LTA.
There are currently 40 x 2.5-5 year olds, 25 x toddlers and 12 babies, but the nursery’s total capacity allows for up to 100 children.
The last OFSTED inspection in December 2017 rated the nursery Good.
Monday - Friday: 08:00-18:00
The vendor is supported by 16x full time staff members, 15x of whom are fully qualified.
The vendor is happy to stay on at the business for an agreed period to ensure a smooth handover for a fee to be negotiated.
The vendor has decided that due to health issues, it would be wise to pass this successful business to a new owner.
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