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BUSINESS REFERENCE : EY034 / RightBiz WEST MIDLANDS - £85,000 - INTERNET BASED TRADING COMPANY SUPPLYING CATERING EQUIPMENT, BAR EQUIPMENT & GIFTS TO THE TRADE AND FOR THE INDEPENDANT | | | | | | Internet Based Trading Company supplying Catering Equipment, Bar Equipment & Gifts to the Trade and for the Independant Home User Confidentially offered for sale Ref No: EY034 Location: West Midlands Asking price: £85,000 plus stock at valuation Current turnover £165,000* per annum Gross Profits £55,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Miscellaneous | | TRADE TYPE: | IT & Internet & Computing | | SALE: | Agent Sale | LEASEHOLD: | £85000 | | | | | | | | | | | BUSINESS DETAILS: | This truly established business was set up back in 1979 and has been under the stewardship of the current owners since 1988. It has been developed steadily in line with the market it serves and has taken full advantage of the benefits that the internet offers. The business has two sides to it: namely the supply and distribution of professional catering equipment to the trade, also via the internet to the 'Cookshop' domestic market, plus the sale of professional barware to the trade and for the home. Because of this the business operates two separate well established websites to serve each sector.
Catering Equipment-The business distributes catering equipment at wholesale level to “Away from Home” outlets including hotels, restaurants, pubs, armed forces, nursing homes, manufacturers and schools etc. Because it is strongly internet based the business is able to serve customers locally, nationally and internationally and has a truly worldwide captive audience and client base. The business offers a traditional range of, in the main, products to meet the everyday requirements of the professional caterer.. The principle products includes crockery, cutlery, personalised menu covers, candle lamps, table linen, pots and pans, small equipment, knives, utensils, disposables and janitorial products etc.
Bar Equipment- This side of the business is totally internet based and is directed at the domestic purchasing of professional barware and gifts to install in a home, games room or lounge. Its scope of products ranges from bottle openers to British high quality craftsman made modern and traditional cocktail bars. Again this side of the business has a truly wordwide client base . As well as the general public, the site generates sales to pubs and clubs nationwide besides advertising agencies and merchandising houses who are purchasing products for promotional work for their clients. The business is able to provide products with branding and logos if so required. The product range is vast and also includes disposable glasses, plates, glasses, bar towels and refrigerators.
The state of the art websites are included within the sale as are the trading names which are all registered. The company has also recently brought out a new brand name for many of the bar products it supplies such as spirit dispensers thus adding further value to the sales.
Technology /Equipment:
Both websites were designed in-house and receive excellent ratings and feedback for their ease of use, security and traceability. The online catalogues are currently uploaded and edited in house whenever necessary. At present most of the photography is also done in-house or downloaded from supplier websites or dvds. Both websites are hosted on a specialist UK based server. The domain names will be handed over as part of the sale. There are many protective alternate domains registered and these will also be made available to a new owner.
The business utilises Pegasus Capital Gold accounting programme to manage stock control, invoicing, credit and cash control, customer & supplier records, period and annual trading accounts.
Customer Service:
A great deal of resource has been put into the development of the websites to ensure customers have a positive experience when they visit them and make a purchase. This is reflected in the high levels of repeat business the company enjoys as well as the many testimonials it receives from satisfied clients complimenting the sites, products and speed of response and delivery.
Key Strengths:
The websites are a key strength of this business. They are both very well established now, having been “live” for some 6 years. They have been designed and developed so that updates and changes can be made quickly and easily with minimum disruption. They also perform very well on the search engines and are easy to use and highly informative.
In addition to this the business has an excellent and diverse supply base already set up, including British Manufacturers and importers of high quality industry standard products; it can cater for most requirements and can very often source enquirers' particular requirements and new products very quickly.
The business is well respected and has high quality customers including respected hotels and restaurants, military establishments, event organisers and small to medium sized businesses. It enjoys good levels of referral business and free unsolicited magazine PR from time to time further fuelling its already impressive reputation.
Growth and Expansion:
The business has huge scope for growth and expansion. With a historical database of over 12,000 customers worldwide this business has a truly global market to serve. New products and further internet expansion would support further growth as would the possibility of a retail operation to support the websites. The business would also benefit from a new injection of energy and some fresh initiatives to ensure continuity and expansion. Local delivered trade can be further developed.
Key Opportunities:
E-Bay represents a significant opportunity as also would setting up an affiliate scheme; there is no reason why a new owner could not develop the company’s presence in these fields. There is also an opportunity to source more product direct from manufacturers rather than via wholesale. This would have a dramatic effect on profit margins. As already mentioned the business has a historical client base of thousands and this target audience could be further developed via a structured marketing campaign.
Employees:
The business is run by the owners on a full time basis. The vendor looks after the day to day operations whilst his wife is the website administrator. In addition to this the business employs an accounts/invoice clerk on 25 hours and a packer/driver working 20 hours per week.
The business also has a network of specialist sub-contractors it can call on when required such as printers, engravers and the like.
Advertising and Marketing:
The main promotion of the business is done via its own web pages. It also utilises local yellow pages and is listed on the Caterer Online Directory. There is huge scope to develop this function further.
Premises:
The business operates from 2 adjacent industrial units on a high profile industrial estate in the town. The premises provide circa 1700 square feet of space in total and comprise trade counter, small offices and storage with good quality racking. The units are connected by a walk through door. One unit houses the bar equipment and the other the catering products and main office. The premises are leased from the local council. There is one year remaining on the current 3 year part repairing lease. Annual rent is £7150 p.a. Rates are £3,600 p.a.
Business Hours:
Office Hours Monday to Friday 0900-1700
Websites 24/7.
Close Down between Christmas and New Year
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 turnover for the last financial year was £165,000. Gross Profits were £55,000. *Previous to that the business was consistently achieving turnover in excess of £200,000. The reason for this drop was down to ill health. Current stock figures are circa £30,000.
Catering equipment side of the business represents 33% of the revenues, bar equipment 67%. Full financial information is available, subject to the confidentiality letter being returned.
Reason for Sale:
Retirement sale. The current owners recognise the potential the business has to offer. They believe the operation would be best served and thrive with a new injection of energy and business acumen.
Support and Training:
The owners will provide full business familiarisation, training and handover and is offering the business as a going concern with further significant growth potential. | | | | | | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | EY034 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
