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BUSINESS REFERENCE : AH044 / RightBiz MANUFACTURERS AND WHOLESALERS OF SILVERWARE SPECIALIZING IN ANTIQUE REPRODUCTION PHOTOGRAPH FRAMES | | | | | | Manufacturers and wholesalers of silverware specializing in antique reproduction photograph frames Ref: AH044 Confidentially offered for sale Location: Re-locatable Asking price: £300,000 Asking price includes: Turnover for the financial year ending March 2006 of almost £80,000 Gross margins of approximately 30% Assets conservatively valued at approximately £150,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Home Accessories & Furniture Shops | | SALE: | Agent Sale | LEASEHOLD: | £300000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established for over thirty years, this business has become a leading manufacturer and wholesaler of silverware to the antique trade. Able to supply just about anything wholesale – from bottle stoppers and bookmarks to napkin rings, candlesticks and candlesnuffers right through to clocks, coasters and salt and pepper mills, this business is perhaps best known for the high quality manufacture and supply of antique reproduction photograph frames.
Specialising in traditional English designs, this business has literally hundreds of tools used for embossing – with its portfolio added to on a regular basis – many of which have copyright in existence. Attention to detail, true craftsmanship and a passion for perfection ensures that every piece manufactured by this business is second to none. All frames are hand made in a workshop of no more than 800 square feet using tried and tested, ‘low tech’ processes. The facias are die-cut and embossed on-site before being sent to the Birminghm Assay office for hallmarking. Once returned the pieces are married with a back – either wooden or velvet, outsourced, even though the business has the capability to manufacture its own, polished and finished, ready for sale to the retail trade.
This business has a very strong customer base – regularly supplying up to 300 accounts – mainly from within the antique trade – with some goods exported to Europe, the US, Australia and New Zealand. Locally sales are made on a personal basis with the Owner of the business calling on customers in the South and South West of the UK. Wholesale items are sourced via approximately half a dozen main suppliers with which this business has had a relationship for over twenty years.
This is a very simple, straightforward business. Despite the high level of craftsmanship involved, this business is easily transferable, and is currently operated on an almost part time basis by the current Owner – fitting in production as and when. With annual turnover of between £80,000 and £100,000 per annum with gross margins of approximately 50%, and tooling conservatively estimated to be worth thousands of pounds, this is an excellent acquisition opportunity for an organization already established with the trade to increase their customer base or alternatively for a new entrant to acquire a niche business with significant growth and expansion potential.
Key strengths:
This business is operating in a very niche sector – a market that is insufficiently large to attract the attention of mass producers or the voracious appetite of the rapidly growing Far Eastern and Asian economies. As a consequence this business has little or no real competition. It has been successfully operating for over thirty years and can rightly boast an extensive, loyal customer base.
Within its small workshop this business has everything required to operate. It has a wide range of designs – for many of which it holds the copyright and all the jigs and tooling not only to manufacture the fascias but the backs too. Its plant and machinery, which includes several very heavy presses are all low tech, reliable and very light on maintenance requirements. Despite the excellent quality of product and an appearance of high quality craftsmanship the skill transfer requirement is relatively low.
Key opportunities:
Very well established, there is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's products, combined with a capacity to increase turnover, a new owner contributing fresh ideas, will have every advantage of building on an excellent platform. Run very conservatively throughout the many years of its operation, there are several areas where investment would assist expansion.
In recent years this business has also been operated on an almost part-time basis to suit the lifestyle of the current Owner. Personally servicing the South Central and South West of England there is ample scope to extend sales of this business’s products throughout the UK either by employing additional sales personnel on a commission only basis or by appointing agents on a regional basis. In the past, the business has employed additional staff and an Agent for the North and the Midlands achieving turnover of almost £ 250,000. There is additional scope to extend into France, Spain and Eire – export markets, all of which are relatively local and known to have a distinct liking for silver products.
Antique reproduction photo frames also lend themselves very well to the possibilities of e-commerce. A well designed, easy to navigate website would significantly transform the turnover and profitability of this business.
There is also significant scope to extend the range of designs of this business. Currently concentrating on traditional English designs there is ample scope to generate new designs for specific interests or events – featuring golf or fishing for example, or wedding, christenings, anniversaries etc.
Marketing and advertising:
Very well established and with a high profile amongst its key target audience – the antique trade and jewelers, this business has invested little in marketing and advertising in recent years, relying on its personal sales calls to drive the business forward. What advertising it has undertaken in the past has been limited to occasional features in the trade publication, The Antique Trades Gazette. The business does have a 4 page full colour flyer featuring selected designs and specifications from within its range.
The business would certainly benefit from the development of a website which would enable the business to service a wider geographical area and potentially penetrate the domestic market. By far its most cost effective form of marketing however is the strong word of mouth recommendation this business enjoys, testimony to the outstanding reputation this business and its products have in the marketplace.
Employees:
The Managing Director/Owner is responsible for the entire operation of the business, working approximately 40 hours per week – split between manufacture and sales activity.
Premises:
The business is currently operating from small premises consisting of a Press Room, Spray Room and a Workshop/Assembly Room. Approximately 800 square feet in all, these are located adjacent to the Owner’s home and as such will need to be re-located.
Plant and equipment:
This company has all the plant and equipment normally associated with a business operating in this area including three embossing presses up to 25 tonne, a swingarm press up to 18 tonne and a small head press up to 100 tonne.
In all, the business has approximately thirty five steel dies, a further fifty or so resin dies and numerous cutters.
The total value of the assets is estimated to be in the region of £150,000 | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | AH044 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
