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UK Based Manufacturer of Jersey and Knitwear

Ref. JD004

Location : East Midlands

Asking Price : £900,000

Turnover : £2,800,000

Net Profit : Undeclared

Gross Profit : £345,000

EBITDA : £180,000

Net Asset : £590,000

Premises : Leasehold

Confidentially offered for sale


  • Turner Butler

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Leasehold

Asking price: O.I.R.O. £900,000

Asking price includes:

Turnover circa £2,800,000 p.a.
Gross Profits circa £345,000 p.a.
Adjusted EBITDA circa £180,000 p.a.
Net Assets circa £590,000
Stock & Comprehensive Machine Assets
Over 10 years successful trading
Excellent supply chain position
High levels of repeat business
Superb reputation
Goodwill
Comprehensive website

Business Profile

This business, established and trading successfully for more than 10 years, provides a comprehensive range of knitwear and jerseywear to well known brands and retailers throughout the UK, Ireland and Continental Europe. There is a significant portfolio of machine assets that makes this company one of the most modern, innovative and efficient in the UK.

The company follows strict standards of Ethical Trading and ensures that all parts of the company’s operations meet and often exceed UK Health & Safety Laws and Legislation. Quality Control Systems are incorporated into the production process, and all operators and technicians are highly trained to ensure full efficiency.

The state of the art manufacturing unit is regularly inspected to ensure excellent Health & Safety working conditions and audited by SEDEX. The company also operates a broken needle policy and metal detection to ensure all aspects of Health & Safety are covered to guarantee the very best working environment.

Whatever the requirements, the company in combination with its outstanding supply chain relationships delivers the highest quality to its demanding customers. The in-house design team works closely with customers in preparing innovative solutions, whilst working alongside the company’s knitting technicians to develop accurate and speedy ideas.

The company’s creative and sales teams pay close attention to all current and on-going fashion trends taking regular trips to influential trade shows as well as trend research specialist sources; collaborating closely with trimming suppliers maintains a full and comprehensive selection of buttons, poppers, zips, beads and trims and offers embroidery options and heat applied studs.

There is also an extensive range of bespoke yarns from Cotton, Acrylic, Metallics to Boucle and brushed fancy yarns including Wools and Blends.

Equipment:

The company utilises up to date accounting software to run the administrative functions of the business.

The very latest Stoll CMS Machinery is used capable of producing every variation of structure and pattern to create the perfect finished product.

Machines are set to use 3, 5, 7, 10 and 12 gauge yarn and other gauges according to customer’s specification. Among the broad portfolio of options the company specialises in Intarsia, Shaping and Fashioning.

Customer Service:

The staff are fully committed to providing the very best levels of customer service and the highest possible standards of work. These levels of customer service are maintained through ongoing training and development.

Key Strengths:

• Comprehensive portfolio of state of the art knitting machines
• Excellent key staff
• Impressive customer retention levels with very high levels of repeat business from a large customer base
• Highest quality service levels
• Market Presence- over 35 years successful trading
• Reputation
• Consistently profitable

Key Opportunities:

The vendor has never actively promoted the company using either advertising or database driven marketing initiatives as most of its work comes via referrals and repeat business. With a more proactive sales and marketing function a new owner could significantly increase revenues and turnover within the business, both with existing and new clients.

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.

The business has enjoyed very consistent sales revenues over many years despite the tough trading conditions and is well positioned for future growth.

Turnover is circa £2,800,000 p.a. with gross profits circa £506,000 p.a. and adjusted EBITDA of circa £180,000. From year ended 31st March 2016 accounts.

The Asking Price of £900,000 is for 100% of the issued capital of the company, assuming Net Assets of c£588,000 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 £588,000 at completion.

Advertising and Marketing:

The business has been trading for over 10 years and has never felt the need to advertise. There is a company website, however the majority of its work comes via repeat business, referrals and recommendations.

The website could be marketed more aggressively using search engine optimisation techniques and perhaps social media to enhance its presence and drive traffic and enquiries.

Growth and Expansion:

The business has enjoyed an excellent level of business to date and continues to consistently perform even in today’s tough economic climate. Growth could be achieved by developing incumbent customer relationships and a proactive new business effort to win new accounts.

Premises:

The business operates from well maintained premises owned privately by the vendor, Art-Deco in style it is situated on the junction of two very busy trunk roads with excellent access to the M1 Motorway. Premises comprise circa 10,000 square feet of ground and first floor (incorporating factory, warehouse and offices). There is ample parking outside for vehicles. It is understood a new lease would be made available to a new owner.

Alternatively the business could easily be relocated should a new owner so require. Current rates and water are circa £15,000 p.a.

Business Hours:

Office: Mon - Fri: 08.00-17.00
The factory will operate a shift pattern during times of increased demand.

Employees:

The Vendor is Managing Director and is supported by the following personnel:

• Sales Manager
• Sales/Merchandising Manager
• Designer/Pattern Cutter
• Administrator/Receptionist/Merchandiser
• Knitter 2x
• Presser 2x
• Sample Machinist
• Overlocker Machinist 6x
• Lockstitcher
• Cleaner
• Warehouse Manager
• Designer
• Pattern Cutter
• Programmer/Technician (FTE)
• Programmer/Technician (Self employed)

Support and Training:

The vendor will provide a comprehensive handover to ensure a seamless transition of ownership. This should be a relatively simple process as the business has several key members of staff.

Reason for Sale:

After many years of managing the company, the vendor has decided that the time is right to follow other business interests.

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