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BUSINESS REFERENCE : AM090 / RightBiz INDEPENDENT CHARTER FLEET OPERATOR | | | | | | Independent Charter Fleet Operator Confidentially offered for sale Ref No: AM090 Location: South Coast Asking price: £425,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Travel Agencies | | SALE: | Agent Sale | LEASEHOLD: | £425000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established in the early 1990’s and under the stewardship of the current Owners for approximately ten years, this business has grown to become one of the largest privately owned yacht charter businesses in the UK. This business offers a fully comprehensive yacht charter management service for yacht owners including licensing, berthing, equipping, servicing and maintenance and for charterers, whether private or corporate, bareboat or skippered . Operating out of very well suited premises, and dominating the Marina in which it is located with approximately 30 of the 220 boats berthed there under its management, this business is based in probably the most ideal starting point for any sailing trip in the country.
With a superb selection of yachts in a unique variety of sizes and designs – with almost all the most modern and leading makes and models represented, this business offers charters - varying from a day, a weekend, a week or even longer with the vast majority of customers, approximately 80%, made up of private Clients. The remaining bookings are Corporate – this business has for a number of years managed a major Corporate event on behalf of one of the UK’s largest blue chip corporations, as well as Yacht clubs and a number of sailing schools. The business has professional Skippers available when required and is a RYA Training Centre offering private education at any level up to RYA Yachtmaster Offshore (Theory – Yachtmaster Ocean) – with personal instruction tailor-made to the individual needs and interests of the trainee.
The cornerstone to the success of this business however, is undoubtedly the enviable reputation this business has built for the quality of care it takes in the cleaning, servicing and presentation of its charters, often working on a three hour turnaround. Customers – both charterers and Owners frequently say the level of service offered is the best in the business - reflected in the high level of repeat bookings and the continuing successful growth in the business. Such is the high level of customer satisfaction this business enjoys it can boast up to a half of its Owners were formally charterers. This business enjoys heavy demand for its boats and is at times oversubscribed. In many cases Owners would never get to use them unless they booked them out themselves well in advance. Such is the high levels of customer satisfaction this business engenders many Owners have continuously placed their boats with this business for the last seven or eight years.
This is a very professionally managed and well respected business with an excellent reputation within its sector – from charterers and boat owners alike. Turnover for the financial year ending October 2007 was just under £1 million generating gross margins in excess of 65% and profits before tax of £77,119 excluding Directors’ remunerations with performance set to be even better in the 2007/8 financial year with turnover projected to exceed £1million with a further increase in profits. As such this is an excellent opportunity for an existing operator to add significantly to its own interests in the sector or a new entrant to establish a firm foothold in the industry by acquiring one of the largest, privately owned, charter businesses in the UK.
Key strengths:
This business is ideally situated – easily accessed from all parts of England and based in a perfect location for sailing. Weather is better and the immediate sailing area more sheltered than just about anywhere else in the British Isles with the benefit of winds that are usually great for sailing. In addition this business is located within easy reach of the Solent, the resorts along the South Coast, the Isle of Wight, France and even the Channel Islands. Even within the Marina in which its offices are based, the location couldn’t be much better – very central and adjacent to the Harbour Master’s Office with lots of passing traffic.
Having been operating for over fifteen years this is a very well established business offering a comprehensive boat management and chartering service with an excellent reputation amongst owners and charterers alike. Overheads are low with the business having invested heavily in the past in a top quality yacht management and booking management system with software written specially to this business’s specifications enabling significantly greater business activity to be handled without any increase in staffing resources.
This business has thirty or so boats under management at any one time, dominating its Marina, with boats secured on a minimum of one year rolling contracts with its main objectives being the first class care of Owners’ yachts whilst maximizing charter revenue through the best quality fleet.
A key component of this business’s growth has been the development of very strong relationships with the marina owners and the specialist trades people to ensure the priority support required to operate the fleet at increasingly efficient levels. An example of this is the ability to obtain berths for new yachts ahead of a lengthy waiting list. The value of the company operation to the marina operator ensures both security of tenure and preferential treatment.
Throughout its many years of operation this business has consistently seen year on year growth in boats under management, bookings and departures. Crucial to its success is its diligence in looking after its fleet. Boats are looked after far better than elsewhere, cleaned after each charter on as little as a three hour turnaround and well maintained – better than perhaps their Owners would with this business having excellent relationships with all the relevant Trades available within the Marina. Not surprisingly yachts are busy over a large part of the year, at times oversubscribed, ensuring good returns for yacht owners, many of whom have placed their yachts with this business for seven or eight years and a number who have returned after buying new yachts. Together with a very high level of repeat charter business and new customers this all ensures high levels of business activity, excellent turnover and profitability.
Key opportunities:
There is an outstanding opportunity to build on the existing business levels and customer base of this company. With its outstanding reputation, new Owners contributing fresh ideas, drive, enthusiasm and investment will have every advantage of building on an excellent platform.
There is certainly scope to leverage the excellent reputation this business has within the Marina in which it is based to generate organic growth at its current location – and even extend its market penetration further by rolling out to other locations around the UK. Similarly as a RYA Training School, this business could further promote its training offering, generating higher levels of repeat business and enabling it to work its boats even harder.
Although the business is very successful in converting Corporate business opportunities that arise there is certainly scope to increase this side of the business. It could also seek to increase activity in the popular Racing Chartering sector and revisit Overseas chartering for which it was an Agent until a few years ago, having decided to reduce its presence in this sector due to concerns that the quality and service offered to its Clients weren’t matching its very own high standards.
Premises and location:
This business is prominently situated, central to its Marina. Adjacent to the Harbour Masters Office its offices are close to a pub/restaurant and on a major walkway though the site ensuring high levels of awareness and good footfall.
The Marina itself, within easy sailing distance of the Solent, the resorts along the South Coast, the Isle of Wight, France and even the Channel Islands is just a few miles from the junction of a major motorway with connections to all parts of England. It is close to one of the fastest growing regional airports in the UK and a BR station with express connections to London.
The premises, approximately 200 square feet in all plus kitchen and toilet facilities are ideal for displaying boat details and are secured on a six year lease with three year rent reviews. The next one is scheduled in 2010. The business also sub lets various containers and sheds around the Marina for the storage of cleaning materials, equipment etc.
In all the business currently has 26 berths on the Marina, leased annually but carried over from year to year. Excluding berthing fees, Rent and Rates are £14,200 per annum with additional rentals for storage totaling approximately £2,250 per quarter.
Marketing and advertising:
Established since 1993 and situated in a prime location for its primary target audience this business has a modest but highly effective marketing programme. Its offices afford prominent display of boat details at the Marina and the business benefits from high levels of top of mind awareness from boat owners and charterers alike. The marketing programme includes year round advertising in the four main yachting magazines, relevant directories and a strong presence at the London Boat Show, where it has a very good site.
The business also has a very well designed, easy to navigate website that performs very well in all of the major search engines for all appropriate search topics.
With a database of over 4,500 personalised mailings are sent out at key times of year.
Employees:
The joint Directors/Owners are responsible for the day-to-day operation of the business. The business also employs a full time Yacht Servicing Supervisor with a freelance Corporate Sales Manager working on a commission only basis. With increased seasonal demands during the summer months the business will often recruit an additional Yacht Servicing Supervisor employed for the season and will have between 8 and 10 employees cleaning, also working on a seasonal basis – the vast majority of which will return year after year.
Financial information:
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Turnover for the financial year ending October 2007 was just under £1m generating gross margins of 65% and profits before tax including interest of £77,119 excluding Directors’ remunerations. The forecast for the financial year ending October 2008 is a projected turnover in excess of £1 million with a further increase in profits. The Asking Price of £425,000 is based on a sale of the shares in the business on a cash free, debt free basis.
Reason for sale:
This is a genuine retirement sale.
Support and Training:
The current Owner is happy to assist with all necessary hand over and the training to ensure a smooth transfer of the business to new Owners | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | AM090 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
