turner-butler

Businesses are featured on

Businesses for Sale

Specialist Tour Operator
Wholesaler to the B2B UK & European Travel Market

Ref. GP221

Location : London

Asking Price : Offers in excess of £500,000

Turnover : £575,000

Net Profit : Undeclared

Gross Profit : £72,165

EBITDA : Undeclared

Net Asset : Undeclared

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

Next Step, Please submit Confidentiality Form/NDA Online 

Submit NDA Online
Submit NDA Offline
Print this page

Leasehold

Asking price includes:

Annual Current Turnover circa £575,000
2017 projected Turnover in excess of £1 million
Gross Profit circa £72,165
Membership of UK inbound and ADS Groups
Fully licenced and insured
HMRC approved for the E.I.S Scheme (Enterprise Investment Schmem)
Well-established and professional team
Future growth potential and repeat business
Substantial database of foreign clients
Training and handover
Website

Business Profile

Established in 2013, the business designs and sells culture related travel products to the UK and Europe. It is a specialist wholesaler which supplies ground breaking travel products and services. The core business is to serve the fast-growing business-to-business travel markets.

Travel products include

• Series and tailor made leisure tours
• Student culture tours and summer holidays
• Fully independent travel
• All in one travel services

The business is working with large Chinese travel corporations and is the B to B (Business to Business) model. The company is acting as the land operator of UK and Europe for these large travel corporations and is signing up annual contracts and taking purchasing orders from them on a yearly basis. The purchasing order value is various and is for the groups of 20 – 40 Chinese Tourists travelling to the UK and Europe. This business looks after all aspects of the group requirements whilst in the UK/Europe.

This involves movement of the groups from the airport to pre-booked hotels, management of the daily itinerary for the duration of the stay and return travel to the airport. Also the organisation of coach travel, hotels, restaurants, tourist attractions, creation of the itinerary, and being the point of contact to resolve any issues. All international operations are dealt with highly eficiently through the in-house booking system, with fixed and low administration cost.

Currently the business is taking on average under 100 groups per year from clients who are themsleves organising thousands of groups to travel every year. Hence the business volume is guaranteed and can grow in the future with the business acceptance of more purchasing orders.

Currently, the company has over several thousand live hotel and ground supplier contacts and confirmed monthly and annual purchasing orders for 2017.

The business is very competitive in the market, and hold licences which are traceable to the Chinese Travel Administration board. The business is also registered at all European embassies and can provide the documentations to help Chinese applying for a VISA to enter the UK and Europe.

Products:

Leisure tour: For groups of 20-40 Chinese tourists coming into UK or Europe for between 10 and 15 days holiday;

Students Programme (Summer and Winter): Offering tailored Micro Study Abroad programmes for those Chinese students who are coming from High Net Worth (HNW) families to experience life style as well as academic study in UK for a short period of time.

Localisation Services: Offering one stop shop services for those HNW families who want to settle in the UK for their kids’ further education.

Customer Service:

Customer service is paramount to the success of the travel industry. The owner is aware of how reputations are built on how good the team perform. The company is efficient and knowledgeable with a 24 hour response to all customer requests that are looked after on an individual basis. 

Key Strengths:

Based in London, with representation in Zurich and a sales office in Beijing, the company works closely with Chinese travel companies. With the increasing desire for Chinese people to travel to the UK and elsewhere in Europe, the business is growing stronger.

The business is very professional when designing and selling the travel products. Should clients need to change their requirements the company is flexible and responsive to their requests, understanding the needs and cultural backgrounds of clients to provide the best travel products every time. Dealing directly with clients also ensures a price advantage for the clients and makes the company extremely competitive within the market. The twenty four hour customer service that is offered ensures a quick response when dealing with any complaints and sorting out any issues while are clients are travelling.

The company has also obtained HMRC’s full approval for the EIS Scheme (Enterprise Investment Scheme)

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. 

Depending on the amount of working capital investment the vendor believes the company could achieve sales of circa £2Million.

£ 2014 2015 2016 2017 2018 2019
  Actual Actual Actual Actual Actual  Expect (with extra 200,000)
Revenue 2,48,876 6,05,359 5,75,379 11,02,789 14,54,215 23,58,047
Cost of Sales 2,56,607 5,11,526 5,03,214 9,21,931 12,30,623 19,31,350
Gross profit -7,731 93,833 72,165 1,80,858 2,23,592 4,26,697

Asking Price:

The Asking Price: Offers in Excess £500,000 is for 100% of the issued capital of the company,(calculated on a zero cash-zero debt basis).

Advertising and Marketing:

The company has not felt the need to advertise. Sales are made direct to travel companies, saving time and cost. The business has an excellent reputation and attracts trade through word of mouth recommendation and referrals. There is also an excellent website to showcase the company and the products on offer. 

Growth and Expansion

The business has grown steadily over the years and has traded consistently having found a distinct niche in the travel market. Due to Brexit leading to the weak pound, the UK inbound travel industry is expecting to grow even stronger than expected in 2017.

So the timing is perfect for the business to grow, however, the business needs extra working capital investment to achieve this.

Currently only operating with one operator in Beijing there is the very real potential to expand to other large cities in China where there are more big travel companies and the guarantee of additional revenue.

There is also the potential to expand out of China and reach out to companies in South East Asia, like Singapore, Malaysia, Thailand, Taiwan and so on.

The travel products on offer can also be extended to include more European Countries than the five that are currently offered the tour products.

Additional investment in developing a customised online platform would lead to business with small family and business groups.

The owner believes that all of the above are an excellent opportunity to take the business forward due to the constant demand for travelling to the UK and Europe from Asia. The business is ripe for further expansion.

Employees:

The business employs 3 full time staff
1 x Hotel Reservation
1 x Operation Staff
1 x Sales

and 2 part time staff
1 x Operation Assistant
1 x Hotel Reservation Assistant

Support and Training:

The vendors are happy to provide support and training to the new owners to ensure a smooth transition of ownership and trading contacts.

Reason for Sale:

The company has been running well over the last 3years with stable profit. The market outlook is good for continued growth, however the business could do with extra capital investment to make the most of the opportunities available.

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