Business For Sale

Freehold Electrical Appliances, TV & PC Retailer & Service Centre with new online sales facility


Ref: AI037
Location: Lancashire, England
Asking Price: £575,000
Annual Turnover: £807,000

Annual Net Profit: Not Set
Gross Profit: £196,000
EBITDA: Not Set
Premises Type: Freehold

Business Description

Business Profile

This very well established and successful retail business has been trading in the centre of this town for some 15 years and has built up a sterling reputation in the area, and a loyal customer base, who appreciate the high quality products and superior service levels and installations this company provides. The business benefits from having very limited direct local competition provides its customers with a comprehensive sales and after-sales service.

The business several core revenue streams as well as two new ones which should increase both sales and profitability moving forward. These include:

• Retail sales of leading brand Audio Visual, TV, Satellite, PC, Phones and other electrical/ white goods (inc. ovens, fridges, freezers, dishwashers, laundry microwaves, small appliances, vacuum cleaners etc.)

• Domestic installation of such equipment and removal of old units

• Full after sales service inc. spares, consumables etc.

• New online sales of above goods via 2 new and secure e-commerce platforms.

• New commercial catering equipment/appliance supplies. This was developed due to market demand in the area and at time of this business going to market has only been trading 6 months. Sales to date have been impressive with good margins being achieved. Business has its own catalogue listing circa 20,000 lines from leading brands.

The firm is very well established within its market, providing a ‘one stop shop’ to many of its customers with a guaranteed range of products and services and the highest levels of quality. The business has built up a superb team of staff over the years and this includes senior manager and long serving sales and administration staff.

The business is ideally located in a High Street location in the town whose inhabitants appreciate the high quality brands the company retails. The company is a main dealer for leading AV /White goods and leading appliance manufacturers and has extensive knowledge and advice at its disposal. Customers travel significant distances to view and buy products due to the choice, the advice and more importantly for the after sales service that continues to be provided and includes delivery, set up and installation as well as removal of old items. The company is a member of a large buying group who assist them in their sales efforts via lots and lots of ongoing promotions. This supply partner enables the company to be competitive and offer speedy deliveries.

The company has literally thousands of historical retail customers on the database, many of whom are repeat clients who have used the company over many years. Typically retail customers are 35+ years of age. The company also has some property developers who purchase appliances and commercial items in bulk.

This customer base is rapidly expanding and the business is enjoying improved profitability in the current year since it developed and introduced its online e-commerce systems in 2014 and more recently the commercial catering equipment division. The cost of implementing these new revenues streams, and staffing them has already been met and these new platforms are already paying back this investment and this trend is expected to continue for a new owner.

The business is being offered for sale including the freehold. The premises are prime retail. Freehold is valued at circa £200,000. However the vendor would consider selling the business on a leasehold basis should a new owner so require, subject to negotiation.

Equipment:

The company utilizes a leading computer package that controls all aspects of the business including EPOS, stock, purchasing and cash-flow. The vendor is able to access the system remotely so he can still oversee business performance whilst away from it.

The company has a database of thousands of historical customers More recently the company has developed two secure e-commerce websites using the latest technology.

The retail premises are very well presented with high quality fixtures and fittings and have excellent frontage. The company has delivery vehicles and range of installation/workshop tools and equipment.

Customer Service:

The company ethos has been built on this area of business, and in particular after sales service and that is why it has successfully traded and grown over time. This commitment to customer satisfaction is backed up with RETRA membership (RETRA is the UK’s leading trade association for independent electrical retailers and servicing organisations) as well as long serving and experienced staff.

In addition to this the business has won several awards for their customer service including “Best UK Small Retailer Customer Service Award 2013..Best UK Small Independent Electrical Retailer 2014 as well as the local council business recognition Award Winner 2014.”

Key Strengths:

• Location. The business is based in the centre of the town in prime retail premises. Excellent footfall and very little competition.

• Financial strength and asset base. Net Assets (including freehold building, stock, vehicles, fixtures and fittings) circa £370,000)

• Reputation and market presence having traded in the town for circa 15 years.

• Newly introduced revenue streams that are already increasing profitability and growing sales for the future.

• Run under management

• Infrastructure in terms of staff, back office etc.

• Huge historical customer base with large future growth opportunities.

Confidentiality Form / NDA

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Turner Butler

Ickenham House, 2-4 High Road, Ickenham, Middlesex, UB10 8LJ
Telephone 0333 1234562 | Facsimile 01895 678532 | Email info@turnerbutler.co.uk | Website www.turnerbutler.co.uk

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