Joiner/Manufacturer of Own Brand, English Oak Furniture and Timber Merchant
Location : South East
Asking Price : £80,000 plus Net Assets
Turnover : £400,000
Net Profit : Undeclared
Gross Profit : Undeclared
EBITDA : Undeclared
Net Asset : £239,374
Premises : Leasehold
Confidentially offered for sale
Recent investment in plant, office & showroom
Well known English furniture brand asset
Substantial balance sheet
Quality furniture design and manufacture
A very wide range of designs
Excellent leasehold, purpose built manufacturing facility
Strong presence in the domestic market
Highly skilled and loyal craftsmen
Established customer base
Fixtures and fittings
This business is a specialist manufacturer of the finest English Oak reproduction furniture as well as offering joinery services and trading in timber materials.
First established in the ‘70’s the business makes real furniture – built by hand using fine timbers that age beautifully. The collection is a range of standard pieces that includes many of the classic 16th, 17th & 18th century English Oak designs with many of these traditional pieces adapted for use in contemporary living environments. Manufacturing predominately in wood the business also crafts furniture in English Cherry, Walnut and Yew.
This business’s extensive collection of furniture includes over 350 designs in all including chairs, tables, cabinets, occasional pieces and bedroom furniture – with many variations available to suit customers’ preferences. This business also offers a complete bespoke service with pieces made uniquely to customer specification.
The business employs a team of skilled craftsmen and has earned an enviable reputation both in the UK and abroad, working with original techniques used by English Cabinet Makers. The timber used is air seasoned and then kiln dried. The hand-finished pieces are fully distressed and coloured to simulate the warmth and character of genuine antiques. Many of these superb pieces will undoubtedly become heirlooms of the future – passed down from one generation to another. As well as finished pieces this business also offers furniture that has not been given the ageing treatment, leaving it with just the edges smoothed and then polished or left unpolished as natural wood or with an oiled finish.
Not surprisingly, for a business of this quality its product is in high demand from private individuals and also architects, specifiers and interior designers purchasing for clients.
Along with its core trading the business also undertakes specialist period architectural joinery, working closely with architects, specifiers and builders as an oak specialist timber merchant. Fresh sawn, air or kiln dried the timber is in demand for many purposes, such as flooring and beams for architectural joinery and restoration work.
This is a great opportunity to acquire one of Britain’s best-known English oak reproduction furniture companies – and a name synonymous with quality furniture manufacture throughout the world.
Whilst the core operation of the business is the manufacture of high quality pieces of furniture, this business has carved for itself additional niche markets – the architectural joinery and the timber merchant operation - which contribute significantly to turnover and profitability as well as providing a barrier against any potential downturn in its core sector.
These areas are also of particular importance because it enables the maximum utilization of probably the second largest cost to the business – raw materials – with timber off-cuts from one area of the business frequently being used and sold via another.
The current Owner of the business is in the process of consolidating all aspects of the operation to one, all encompassing, freehold site belonging to the Owner of the business. As well as providing efficiencies in costs etc. this will ensure the business is easier to manage going forward and affords the current Owner flexibility in negotiating a sale advantageous to all parties.
The business is managed full time by a very experienced and capable Managing Director and the owner plays no part in the day to day running or management of the business.
There is tremendous scope for developing the brand both domestically and internationally giving rise to significant growth and expansion.
Aside from the core furniture business there is also considerable scope to build up the joinery and timber merchant side of the business – and particularly in relation to kitchens - amongst the local carpenters, joiners and other furniture makers, not to mention individuals looking to purchase privately.
The business is being 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.
Forecast current year’s turnover circa £400,000
a) All timber at grade: trade price, fresh sawn, air dried & kiln dried, estimated value £125,000.
b) Machinery – all types: cranes, forklifts, extraction plant & kilns. Estimated price £100,000.
c) Finished items – joinery & furniture estimated price £50,000.
d) Accessories & brass & ironwork etc. & stock in trade estimated price £30,000.
e) Work in progress – circa £20,000.
f) Offices circa £10,000.
1) Brand Name – Tudor Oak
2) All staff hopefully to remain, 6 in number
3) Sales Person To be employed 3 month’s trial period - overall 1 year contract.
Wages for a 3 day week £12000 PA plus 4% commission on sales.
4) Rent as recommended by Core Commercial Agents; Report available.
Main Building 7500 sq. ft Office, showroom & storage 1600 sq. ft £53,000 PA
Suggest Year 1 £35,000 PA to increase by negotiation
5) Lease minimum 5 years + break clause to be negotiated
Note The wish for a shorter lease to be reflected in Rent
6) Machinery + Plant + Tools + Cutters + Kilns
Estimated value (installed) £70,000 (valuation by others if required; you could just maintain and buy later)
7) Timber Stocks at Cost as at year end 30/06/17 £139,374
Before next French purchase stocks are down at 01/01/18
8) Work in Progress £8000
9) Showroom Furniture, stock & joinery doors £30,000
10) Furniture Parts Store available when required at cost – large quantity
The Asking Price of £80,000 plus Net Assets is for 100% of the issued capital of the company, assuming Net Assets of circa £239,374 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 £239,374 at completion.
With a typical furniture purchase being in the region of several hundred pounds the business concentrates its marketing efforts at the top end of the market, taking full colour advertisements in the popular Glossies and Interior design magazines. This is complemented with product specific literature and a colour catalogue, updated annually, featuring the full range of furniture.
A well designed, informative and user friendly website featuring all of the leading ranges is also a major asset of the business.
The company operates from a site of approximately one acre in a fairly rural location with good transport links via the major motorway network to all parts of the UK.
The woodworking mill and dry timber storage is approximately 8,000 square feet with a purpose built building of approximately 13,000 square feet housing the Cabinet Workshop, Polishing Shop, Office accommodation, piece part storage and showroom.
The freehold of the premises belongs to the current owner of the business who will negotiate a new leasehold arrangement for the successful purchaser, term to be agreed. Rates for the entire site are thought to be approximately £24,000.
The owner of the business plays little or no part in daily business activities and Managing Director is responsible for operations and is supported by one other Director who manages the Woodworking factory.
In all there are 6 full time & 1 part time self-employed employees; plus sub-contractors, woodturning & upholstery.
The owner is happy to provide support and training to ensure a smooth transfer of the business to new owners and will be available for a longer period on a part-time basis if appropriate and subject to negotiation.
This is a genuine retirement sale.
Energy Performance Rating ‘D’.
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