| | | BUSINESS FOR SALE ADVERT DETAILS | | | ADVERT VIEWED : 11,805 TIME(S)
BUSINESS REFERENCE : GK121 / RightBiz GK121-NORTH EAST SCOTLAND-£280,000-HOME IMPROVEMENT COMPANY | | | | | | Home Improvement Company Supplying and Fitting Windows, Entrance & Patio Doors, Conservatories and Driveways Confidentially offered for sale Ref No: GK121 Location: Central Scotland Asking Price £280,000 | | | BUSINESS LOCATION: | Undisclosed Central Scotland UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Other | | SALE: | Agent Sale | LEASEHOLD: | £280,000 | | | | | | | | | | | BUSINESS DETAILS: | Business Profile
Business Profile
We are delighted to offer for sale this thriving and highly regarded installer of Windows,
Entrance & Patio Doors, Conservatories and Driveways, based in the North-East Scotland.
The business has built up an enviable reputation throughout the region for a quality product, a quality job at a sensible price. Currently annual turnover is targeted to exceed £2,400,000 in 2008. There remains infinite scope to develop turnover further. This is a unique opportunity to purchase a thriving and successful company.
The business is a company run under management, which don't compromise on quality or service, proud to provide and fit to the highest standard - windows, doors and conservatories.
Creating high quality home improvements, professionally installed by reliable and skilled craftsmen, double glazing that enhances the character (and value) of homes, offering a 10 year insurance backed warranty on all installations.
The company is firmly established in the ever growing driveway construction sector, designing and installing superior monoblock driveways made to last.
These new driveways enhance and add value to homes from the moment they are installed.
Its ongoing success is based on engendering a high level of trust by delivering to its customers a high quality, value for money product when the customer wants it.
In a sector where generally margins are tightening demand for the companies products and services in both the direct to consumer and commercial markets remains strong . The company has also picked up additional business as a result of the demise of some of its competitors. A combination of these factors means that performance for the current financial year is expected to be up 20% on the highly profitable previous year with the indication that this is sustainable for the foreseeable future.
This performance has been achieved against a backdrop of minimal marketing activity with substantially all work now coming from referral hence further performance improvement may be obtained by implementing a simple marketing campaign as well as further widening its geographical sphere of operation. Manufacturing capacity exists to support further expansion.
The business is being offered for sale because of impending retirement and offers are invited for the share capital of the business which fully reflect the quality of the opportunity and its future potential.
Major product sales are in the following lines (with percentage of annual turnover):
· Windows, Doors & Roofline - 75%
· Conservatories – 20%
· Driveways – 5%
From the outset the company has strived to provide high quality products, competitive priced, backed up with superior levels of service. By doing this the business has built up an enviable reputation in the consumer market it serves. This company ethos is understood by all staff and is one of the reasons why the business continues to be at the forefront of the market.
Product quality is guaranteed as everything is custom ordered and highly durable to withstand the elements without discolouring or deterioration. Designed to last and look good, the window and door systems offer built-in safety, security and insulation features which make them both functional and attractive.
All major component manufacturing is outsourced with the final assembly taking place at the company’s premises. Exemplary relations exist with key suppliers who have helped to ensure that production is never compromised and that customers are never let down. This commitment to supplier relationships has underpinned this business’s abilities in product quality and success.
This business owner has created an established and proven formula for business success, whilst still enjoing the personal freedom and profitability associated with running a business under management
Customer Service
The highest levels of personal service are at the core of the business’s ethos. After sales service is particularly strong which results in much referral business being won.
Key Strengths
The company is very well positioned in the market and this is backed up by its strong financial record. It has excellent resources at its disposal including highly qualified and experienced staff, in-house design and an excellent reputation backed up by a database of some 2,000 satisfied customers. A commitment to the highest levels of service underpins the everyday activities of the company. It is this generation of goodwill for the business name as well as the organisational structure that reduces the need for constant input from the vendor. This has resulted in customer relations founded on a history of trading satisfaction and not contingent upon the continuing presence of the current owner himself. This excellent position is further enhanced by a sound second tier management team including a general manager currently reporting to the owner.
The company has already earned an outstanding reputation for its value for money, honesty, service, reliability, efficient job completions, excellent quality work, and ability to deliver multiple products, cost control and highly skilled, experienced installers. All of which is driven by the strong culture of innovation and commitment to customers.
Growth and Expansion
With a strong sales conversion ratio, additional offices will generate more sales. Current accelerated growth is largely as a result of a new branch opening; therefore a new owner should look to open more offices as a sound expansion strategy.
Additional product lines can also be brought on stream including garage room conversions, burglar alarms, CCTV and potentially kitchens. The new driveways product line can also be exploited further.
Employees
The company utilises a mixture of both PAYE and self employed staff as is normal within the industry. Circa ten people are employed. Unusually a large team of circa forty staff operate within a telecanvassing team, all of whom are self employed. This team provides leads for the two sales managers and eight sales executives.
The install team is particularly strong with a manager, surveyor and five, two man installation teams.
Advertising and Marketing
Advertising and marketing sit at the heart of this sales driven business. In addition to advertising in Yellow Pages™ and Thomson Local™ other regular activities are undertaken. These include billboards at the local Scottish Premier League football ground and in the city centre. Radio advertising is another important source of lead generation.
A professionally designed, maintained and hosted website has done much to drive sales growth outside of the local area.
Premises
The company operates from excellent offices and sub assembly facilities of circa 5,000 square feet. The lease expires at the end of 2011 with a break option at the end of 2008. Rent reviews occur at the same times. Current passing rent is £9,000 per annum. Business rates are circa £4,000 per annum.
A serviced sales office has recently been opened in another major Scottish city. Total costs for this unit are circa £10,000 per annum.
Financial Information
The business is being offered for sale on an ongoing 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 low levels of borrowing. High gross margins are enjoyed and the business is growing quickly. Current turnover forecast to 31st December 2007 is circa £1,900,000.
Reason for Sale
The current owner is relocating abroad and is therefore looking to dispose of his interest in the company.
Support and Training
A full period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership.
| | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | GK121 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
