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BUSINESS REFERENCE : AF081 / RightBiz IMPORTER, WHOLESALER & DISTRIBUTOR OF ETHNIC FOOD PLUS CASH & CARRY | | | | | | Importer, Wholesaler & Distributor of Ethnic Food plus Cash & Carry Confidentially offered for sale Ref No: AF081 Location: Middlesex Asking price: £15,000,000 | | | BUSINESS LOCATION: | Undisclosed Middlesex UNITED KINGDOM | | BUSINESS SECTOR: | Catering | | TRADE TYPE: | Outside Catering | | SALE: | Agent Sale | LEASEHOLD: | £15000000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile:
Since its inception in 1993 this business has grown exponentially, due to the huge and diverse product range offered within this niche market, combined with the prompt and efficient service throughout the UK and its superb supplier relationship, allowing it to be always price competitive.
This business has found a huge niche, ethnic marketplace with very little competition, especially on a national basis. In addition to importing the food lines direct, the company also wholesales and distributes within the UK on a next day basis, plus running a very successful and lucrative, cash and carry business from its head office location in Middlesex.
The company carries a large variety of food and drink lines and catering products. Customers can rely on this company to provide them with a complete service with food products that range from the ordinary to the ultra-exotic. It is very profitable and attracts an extensive base of repeat customers from a wide radius, with a database in excess of 1,000. They are extremely competitive, supplying quality products, food and other merchandise, and have an impeccable reputation, offering enormous potential.
This business has an enviable list of valued customers who will vouch for their ability to consistently supply quality products and offer an infallible service, which is both reliable and competitive. This is an excellent, well run turnkey business on first class margins, which are achieved by judicious buying from suppliers.
No small part in the ability of this business to grow and sustain its profitability is due to the quality of its people. The business has a strong commitment to the development and welfare of its staff; which has contributed, alongside investment in technology, to the excellent profitability of the business and its current position as it is poised to exploit expected and significant continued growth in turnover.
A key component has been customer service that is focused to a great extent on the quality of the premises, the place where the reputation of the business can be made or lost. Understanding this has meant that the business has prioritised this area such that it represents as much a high quality warehouse, distribution centre and cash and carry for its range of products as it does being point of collection and delivery.
Customer Service:
The business manages a great many customers in any normal week and has the systems, processes and people to ensure that both productivity and customers’ orders are satisfied. The most important aspect of customer management and satisfaction considered by the business is honesty and is responsible for the business retaining many customers and the reputation for which has led to the acquisition of many new customers.
High quality service, with flexibility, honesty, reliability and good value, every order request is important and customers always come first. The result is self evident in the business’s sustained level of repeat business.
Key Strengths:
The business is an autonomous organisation where the business owner has, over time, developed and nurtured a management and sales team capable of overseeing business operations effectively, reducing the need for constant or daily input from the vendor. This has resulted in customer relations founded on a history of trading satisfaction and not contingent upon the presence of the vendor.
The business is well established and very profitable benefiting from its close supplier relationship and consequent buying power, with a loyal and growing customer base in excess of 1,000, retaining a high level of repeat business, particularly among a number of customers returning on a regular basis and having done so for many years.
The company has earned an outstanding reputation for its professionalism, service, reliability, flexibility, efficient order fulfilment and a willingness to help.
The business employs a stable, experienced workforce to work from these well-suited premises. The trading track record of this thriving business speaks for itself; with a long history of profitability and a strong trading performance in recent and current years coupled with debt free status.
Growth and Expansion:
The current market for this business’s services is stable and is forecast in the near and longer term for continued and significant growth within this niche ethnic market. The business is well positioned to take maximum advantage of this growth as it occurs and to seek out other related markets.
Key Opportunities:
This is an outstanding opportunity to build on the existing products and customer base of this company. With a strong demand for products combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in sales and marketing resources will have every advantage of building on an excellent platform.
This firm maintains an extensive base of satisfied customers, who appreciate the company’s superior services. There are many excellent avenues for growth, especially with marketing investment and forecasts that are showing early trends for growth and development.
Further development and growth lies with the addition of more lines, more sales personnel, more suppliers, new product groups, such as non-food consumables and the exploitation of new regional sales areas.
The vendor believes that with these changes in place the business could very easily increase its revenue by 50% within a two-year period.
Advertising and Marketing:
The best form of advertising for this business is "Recommendation". The business currently takes advertising space in the trade press to promote the products it supplies. With limited advertising being used in the past there are excellent opportunities to increase this and market the business more aggressively. A large percentage of new business is generated from customer referrals, bearing strong testimony to the business’s excellent reputation. The company has a website that is constantly under update but could increase further revenue potential by introducing on-line ordering facilities.
Equipment:
With an asset base of circa £2.4million there is a large and diverse equipment range with all items necessary to the continued running of this successful and lucrative business.
The company business and accounts are run on a SAP Business 1 software system, that has been installed for some time and has been thoroughly run in. This is constantly under scrutiny to find ever more ways of improving the company’s efficiency.
Premises:
Located in a secure business park in Middlesex with security and gate access this has an area of approximately 40,000 square feet with two fully racked warehouses and large amounts of office space, with the all the usual facilities and amenities. The office space is currently under utilised, offering the opportunity of sub letting some of this valuable space, for additional income if required. The premises also benefit from three-phase electric supply, as well as all other services with plenty of parking and delivering space.
The current lease is a ten-year fully renewable lease, with nine years to run and rent reviews every five years.
Current rent is £375,000 per annum with rates payable of £185,000 per annum.
Security:
The business park that the premises are located on is fully enclosed by security fencing, with a gated and constantly manned, access point. In addition the park has CCTV around the entire area, making this extremely secure.
Employees:
The owner works full time in the business and has a total of forty-two full time staff, covering all aspects of the business.
Business Hours:
Monday – Friday 6.00am – 10.00pm
Saturday 8.00am – 2.00pm
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 is financially stable with no borrowings, no debt, reasonable overheads, positive cash flow, with high gross and net profit and has shown incredible growth over 15 years trading, with huge potential still forecast.
Sales revenue is circa £11,000,000 per annum with Gross Profit circa £3,000,000, (after distribution costs as well) and Net Profit circa £1,100,000, net assets circa £2,400,000 and stock circa £500,000. The vendor feels that with investment in sales and marketing combined with the expected increase in market demand and moving into related fields, the business could dramatically increase its revenues and profits.
Reason for Sale:
Having achieved the goals set for himself the owner now has other, very lucrative business ventures in mind, that he wishes to apply himself to full time.
Support and Training:
The current owner will provide all necessary training and all relevant contacts to allow continuity of trading. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | AF081 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
