UK Manufacturing and Distribution Business with
2 core revenue generators - babywear & soft play equipment
Location : Midlands/Relocatable
Asking Price : £95,000 plus Net Assets
Turnover : £250,000
Net Profit : Undeclared
Gross Profit : £140,000
EBITDA : £85,000
Net Asset : £125,000
Premises : Leasehold
Confidentially offered for sale
Net Assets circa £125,000 (inc. plant & equipment, f&f, stock, debtors-creditors, cash etc.)
Projected Turnover for current financial year circa £25,000 p.a.
Projected Gross Profits for current financial year circa £140,000 p.a.
Back Office systems including production control barcode system
State of the Art Manufacturing Equipment
Highly scalable business opportunity
Superb interactive/separate e-commerce websites
40 Regular Customers (Trade)
Impressive feedback figures
Market leading supply partners from UK and Overseas
Excellent staff structure
This reputable and firmly established independent family business has been successfully trading for some 35 years. It has evolved during this time into a multi-faceted UK manufacturing business with 2 distinct modes of operation that exist under the one Limited company. Both divisions operate in the mid to upper end of the market, such is the quality of manufacturing.
Baby Garments account for approximately 70% of current revenues. All garments are manufactured in the UK to a very high standard (historical customers include John Lewis and Mothercare). Range of garments include baby sleepsuits, bibs, bodysuits, cardigans t-shirts, gifts and accessories. The business has its own designs as well as offering customisation.
The company supplies to independent retailers, online retailers and promotional companies with some 30 regular customers. It also sells via its own interactive e-commerce websites, partner websites and via the Amazon and eBay platforms.
Soft Play Equipment & Inflatables makes up the other 30%. This is very much seasonal (January through to July typically). The company manufactures a comprehensive range of high quality bouncy castles and similar inflatable products, not to mention soft play mats and accessories that are all listed on its own e-commerce platform (that includes several websites as well as other leading platforms). All inflatables are manufactured to PIPA standards. The company enjoys healthy levels of repeat business from UK trade customers (typically companies who hire these inflatables out) who value the high quality manufacturing and short leads times this business provides.
Both customer bases are loyal. The business has a strong online presence and successfully sells through its own websites, partner websites and also across online portals Amazon and eBay –feedback levels are very impressive as it operates in the mid to upper end of the markets.
The company experiences very low return rates as a result of the quality of its merchandise, plus the state of the art machinery it has invested in.
This business is totally portable and scaleable. Its customer base, and supply chain for that matter, has grown and strengthened year-on-year. It has relatively low fixed costs and is simple to run. All sales generate impressive gross profit margins (64%), which, together with the fact they manufacture, ensures the business enjoys good levels of profitability.
The business model has been put in place. It is ripe for a new owner to utilise the superb and highly valuable positioning this company has developed, both online and in the market though its relationships with leading suppliers. The opportunity is there to either bolt on to an existing operation or for a new owner to scale up the business to maximise the many opportunities already at its disposal.
The business has invested in technology and has excellent e-commerce websites (both its own, its partners and via Amazon and eBay). The company manufactures using market leading production control barcode systems for both sides of the business, and also utilises Sage accounting, invoicing and payroll software.
The company has invested in state of the art production equipment, including high end sewing machines that include:
• Pegasus fully automatic back latch 4 thread over lockers (Qty 5)
• Pegasus fully automatic conveyor belt twin needle hemming machine including stacker. (Qty 1)
All equipment is included within the asking price.
The business provides customers with a comprehensive level of customer service across the board and this is evident in the excellent reviews it enjoys, not to mention impressive levels of repeat business. The impressive feedback scores on both eBay and Amazon speak for themselves!!
Its e-commerce websites and its partners are secure, informative and easy to use. They provide customers with a huge range of products, advice, delivery details and a simple returns policy.
• The company has developed its own range of comprehensive products, both in the baby garment sector and with the bouncy castle/inflatables. They offer a very large range to meet most requirements.
• The company is able to buy raw materials at very competitive rates. They are therefore able to provide competitive prices to customers.
• Experienced key members of staff
• Very short lead times
• Can do small or large production runs
• Reliability and traceability with comprehensive back office systems
• Highly prized and extremely valuable feedback scores/listings
• Superb supply and sales partners
• Market presence with brand development opportunities
• Impressive gross profit margins
• Truly scalable business model
• All year round sales
• Positive cash flow
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.
Projected Turnover for current financial year ending March 2019 circa £250,000 p.a.
Projected Gross Profits circa £150,000 p.a.
Average EBITDA pre sole director drawings circa £85,000 (based on previous 3 years trading)
Net Assets circa £125,000. This includes tangible assets circa £44,000 ( plant and equipment, fixtures and fittings etc.) plus stock, debtors less creditors, cash at bank etc.
Typical stock holding is circa £30,000.
The asking price is for 100% of the issued share capital of the business and is based on Net Assets at completion circa £125,000 as per above. The price will be adjusted at time of sale £ for £ should this Net Asset position change.
The business is very much geared these days to online sales and marketing. As already mentioned the business’s own and its partners’ websites enjoys good organic rankings and feedback and also enjoys excellent exposure via Amazon and EBay. The company could do a lot more by utilising more SEO and embracing social media.
The business has been trading for some 35 years and in that time has generated impressive returns for the owner and his family. It has previously achieved significantly higher sales and profitability, but the owner by his own admission has not pushed the business on over recent years, due to impending retirement. There is huge scope to expand both sides of the business, particularly the clothing (the vendor advises it could easily quadruple sales with current infrastructure in place) as the product ranges and manufacturing capabilities are already there, not to mention the online presence that can be built upon.
The infrastructure is in place for a new owner wishing to expand the business through new levels of energy and increased business acumen. There are many avenues to develop this.
Integration into an existing e-commerce operation would also be straightforward.
The business operates from leasehold premises that comprise of a 2 storey building of circa 7,500 square feet including the factory area, warehousing and offices as well as front yard. Premises are fully alarmed. Current rent is circa £24,000 p.a. We are advised a new lease would be made available as the vendor owns the property.
The vendor is MD and works in the business full time overseeing the operation. By his own admission he has taken on a less active role in the last year or so due to pending retirement, which is reflected in the figures.
The business currently employs a total of 6 full time staff. This includes a factory manager, production supervisor and 3 machinists. It also employs 3 further machinists and an administrator, all on a part time basis.
The business can operate short term on a day-to-day basis WITHOUT the input of the owner. All employees are real assets of the business.
Office: 08:30-16:00 Monday to Friday
Vendor will provide a comprehensive handover to ensure a seamless transition and continuity of trading, this should be relatively straight forward based on the current business model and the fact he has experienced employees already in place.
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 firstname.lastname@example.orgTurner 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