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BUSINESS REFERENCE : CP018 / RightBiz CP018-NORTH EAST ENGLAND-£ 395,000-MANUFACTURER OF INDULGENT BRANDS AROMATHERAPY, ESSENTIAL & FRAGRANCE OILS, HERBAL PRODUCTS ETC | | | | | | Manufacturer of Indulgent Brands Aromatherapy, Essential & Fragrance Oils, Herbal Products etc Ref.CP018 Location North East England Asking Price £ 395,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Manufacturing | | TRADE TYPE: | Other | | SALE: | Agent Sale | LEASEHOLD: | £395000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
This is an exceptional opportunity to purchase an ethical British manufacturer and worldwide exporter of natural health and indulgence products with recognisable brands.
Originally a “one man band” having traded since 1976 when the distinctive and original logo, still in use today, was designed and used on product labels, the company remains today owned and managed as a family business based on ethical values.
The company produces a vast range of ethical health and pampering brands, plus many more natural products. All of the products are manufactured on the companies own green field site.
Amongst the database of regular customers, the company have produced products for some of the worlds largest retailers and have manufactured exclusive promotional products for two of the worlds largest corperations and for one of the worlds finest hotels in Dubai.
The business is profitable and easy to run with low overheads and works to simple business principles of providing a friendly, competitive and quality service to its customers, but with a comitment to produce from natural ingredients with ethical values.
Customer Service:
Customer service is paramount to the success of this business. This is a family run business with family values. They offer a vast range of products and aim to produce within 48 hours of receiving the order. Customers are always commenting on the excellence of the service provided and the genuine flexibility of the company helps them to achieve their delivery goals. With production of goods on the premises, the company are flexible enough to manufacture to order.
All of the products are delivered in the attractive company packaging which has been carefully designed, to add further value to what is already a superb natural product.
Key Strengths:
There is an ever increasing consensus of opinion that we are becoming more aware of the negative aspects of modern life, and the effects they are having on our planet. Modern research shows us how earlier civilisations lived in total harmony with their surroundings and it is known that certain plants could cure illness and promote well being. This is one company who is committed to promoting natural remedies and natural products that help combat everyday stresses with natures own resources.
There is a vast range of products on offer to their customers, and their retailers can work with margins of around 100% for the majority of these lines. The company has an excellent supply chain that is highly recommended by the owners as to their own ethical and green values.
The company has direct relationships with stores throughout the UK who specialise in selling natural health and pampering products. These include independent gift stores, wholesalers, mail order companies and e.commerce traders. There is a regular export business to the Far East and Europe, and this could easily be expanded. One customer in Japan has purchased 3-4 times annually for the past 16 years.
The business has been developed in such a way so it can cater for the most demanding of clients. The infrastructure is in place with both its staff and manufacturing capacity to go forward to a higher level .of both production and supply
The reputation is such that the business enjoys very high levels of repeat business. The customer base is a mixture that is split between the UK market and the export market, circa 50% UK and circa 50% export. There is excellent scope for growth for the company, and there is spare capacity within the factory
The business is well run, with a small, but excellent team of workers, who pride themselves on the high standards they have set. All new orders are paid for up front, with existing customers paying on the receipt of their order. This helps the company produce an excellent cash flow situation.
The family owners have invested heavily in the finest ethical materials, with botanicals from India and essential oils from USA, France, UK, Egypt and Indonesia.. This always keeps the business one step ahead of their competition and continues to provide their clients with an excellent quality product.
Growth and Expansion:
The company has spare capacity in the factory, and there remains scope for an increase in production to bring in further turnover and profits.
The owners have maintained the business at a level that is comfortably manageable to them based on the current infrastructure, but believe the business, with the right new owners, can very quickly increase its turnover. There is an opportunity to employ either a sales team or sales agents to drive the business forward. There are also gaps in the market to supply larger retail chains in the UK, together with Export opportunities.
The company has an active web-site, but there is no major marketing or advertising budget. They obtain the majority their business from their regular customers and by word of mouth recommendation. A small amount of investment in a sales drive would immediately reap rewards with the high quality product and service which is provided.
Key Opportunities:
This is an outstanding opportunity to build on the existing products, services and customer base of this business. With a strong and growing demand for this type of product, combined with a capacity to increase turnover, a new owner contributing fresh ideas and energy, will have every advantage of building on this excellent, existing platform. The plant has spare capacity and there is room for the company to increase their production output to meet increased demand.
Premises:
The business runs from a 10,000 sq.ft industrial unit in the North East. There is a large production area on the ground floor which has racking for storage purposes together with canteen and toilet block. There are offices, on the mezzanine floor above, with a secondary area which is used for storage and sewing production. The mezzanine floor measures circa 5,000 sq.ft making approx. 15,000 sq.ft. total floor space. There is a yard outside the building with ample parking. Within the building there are two offices which are currently rented out at £120 per week. This income can be on going if desired
The lease on the premises is negotiable with the owners and there is also the possibility to purchase the freehold if required. The property has been recently valued at £340,000. Rent is circa £20,000 p.a with rates of £7,100 p.a. Outside there is room for expansion of the workshop/building with circa 1.8 acres of building land within the perimeter fencing.
The premises are fully secured with the yard fenced off. And roller shutter doors on the outside of the building.
Financial profile:
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 turnover is circa £203,000 per annum with Gross Profits of circa £110,000. Net assets, which include all production equipment and stock are circa £50,000.
Employees:
The business is run by a husband and wife team who look after all the daily buying, pricing, administration and financial matters. There are two other full time workers and one part time worker who handle all the manufacture and distribution of the goods and orders. The owners spend approx. fourteen weeks per annum overseas.
Support and Training:
Both the owners would be happy to help out with a smooth transition of the business and help in anyway possible.
Reason for Sale:
Unfortunately because of illness the owner needs to retire. Both the owner and his wife are keen to see someone with ethical and green beliefs take over their business. They believe that with new ideas and energy put into the business it can grow quickly and reach new and exciting heights. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | CP018 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
