Well Branded Online Sports Equipment Retailer
Location : Fully relocatable
Asking Price : £350,000
Turnover : £1,333,000
Net Profit : £104,000
Gross Profit : £288,000
EBITDA : £115,000
Net Asset : £77,000
Premises : Relocatable
Confidentially offered for sale
Turnover circa £1,333,000 per annum
Gross Profit circa £288,000
Net profit circa £104,000
Adjusted EBITDA circa £115,000
Stock at valuation (SAV) circa £77,000
Private client base of circa 12,000 plus
Great profit margins
Established in 2008, this successful business is an online retailer of a wide range of well branded, popular, in demand sports equipment, including Power Towers; Running Machines, Vibration Plates and Spray Tan Tents etc. The goods are imported from the Far East and excellent trade relations have been established to create a constant supply chain.
The business has its own detailed website plus a well-established Ebay and Amazon retail store. The Amazon Store has now been launched and projects to rival the Ebay store. Product ranges are offered with significant savings compared to high streets retailers and the business has gained a reputation for good quality products at competitive prices.
There is approximately a 12,000 plus active private client base with many excellent reviews.
The business is easy to manage and maintain with in-house fulfilment and offers plenty of growth and expansion possibilities as well as being easily relocatable.
Central to the company success is its excellent reputation and total commitment to quality of customer service and customer care. Attention to the customer experience from the moment they click on the website, through to delivery, and on to the after-sales is proven by the regular repeat clients and the high levels of recommendation and referral.
The statistics show there is an ever increasing demand for quality sports goods online. This business, through all of its online presence has rapidly developed into an online shopping brand synonymous with a wide and varied range of good quality sports products at an excellent price – offering significant savings on products normally found on the UK retail scene, even taking into account delivery costs. They sell their own brands which all have their own trademarks.
The success of the business is down to brand awareness, the professional service, reputation and price. There are not too many well branded competitors of this caliber.
A new owner could increase awareness and increase sales and profits with the introduction of a cross marketing program to the 12,000+ active client base.
The high quality product range supplied could be expanded on as currently a fairly limited selection is on offer. There is the possibility of increasing the offering to customers, this would be a simple process as the contact manufacturer, already used in the Far East, has a whole selection of additional products available.
More attention should be paid to embracing social media as well such as Twitter, Facebook, and Instagram.
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.
Turnover as per the year end January 2017 circa 1,333,000 per annum, Gross profit circa £288,000, Net profit £104,000 and Adjusted EBITDA £115,000.
The business has now contracted a fulfilment company at a huge savings.
The Asking Price is for 100% of the issued capital of the company, assuming Net Assets of £stock Value on completion (calculated on a zero cash-zero debt basis).
The market outlook for this business sector is constant; the business has an excellent website, Ebay and Amazon shop, which holds very high quality standards. However, all of this can be added to, in order to attract even more business, especially by embracing social media, as previously mentioned.
A fulfilment company has now been appointed to save time and money.
The business is easily run by the owners in conjunction with a fulfilment company. The vendors are currently spending time abroad which is why the operation is set up the way it is. Basically the fulfilment company does all the work and the owners deal with customer enquiries and stock purchases. As everything is done online the owners can easily run the business from anywhere. The operation is an easily manageable one.
The owner will provide full support and training over a period of time to be decided, if required.
The vendor wishes to emigrate once the business is sold.
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