Streamlined Frozen Food Wholesale And Distribution Business | | Undisclosed Relocatable | | Streamlined Frozen Food Wholesale and Distribution Business Ref.AF148 Location Home Counties Asking Price £160,000 | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 57429
ADVERT IMPRESSIONS : 37,048 TIME(S) | | | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Frozen Food | | SALE: | Agent Sale | ASKING PRICE: | £160000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
This company has been operating since 1992, with the present owner and his partner taking over the business and operations in 1996. The vendor bought out his partner in 2002 when he restructured the company. The business has enjoyed some highs, with over £1.4 million in revenue generated in 2000, with the business deriving £500,000 of this amount from the import of prawns from Scandinavia and chicken from Thailand and Brazil. Since then the business has moved with the times, and owner steered the company through difficult times after the partners went their separate ways, and marketplace changed. The business is now well placed for a return to growth under new ownership.
The business supplies goods wholesale to the independent Sandwich Bar marketplace, with around 50 key clients in and around London, which can easily be increased by around 50% in the short term. The company offers all types of produce apart from bakery and beverages, with an emphasis on quality goods at reasonable rates. The key goods include cooked & delicatessen meats, tuna, prawns, chicken, mayonnaise, tinned goods, and other assorted foodstuffs. With twice weekly deliveries, and a flexible and responsive approach to ordering, the customers are confident in having good quality stock on hand every day to handle their changing daily trade requirements.
The business is a streamlined operation, with the vendor handling all orders and day-to-day management from his home office, with both on-site and off-site storage. This means the business is easily re-locatable and primed for handover to new proprietors. Currently the business enjoys a Gross Margin of approximately 17% on average across the board. The vendor believes that with capital re-investment in bulk buying, these margins can easily be increased to circa 22-25%, whilst remaining competitive and potentially winning returning customers to the business.
Equipment:
The business is operated with a computerised back-office system which handles all financial accounts and includes client records. There is a Delivery Van which currently handles all deliveries.
Customer Service:
Whilst competing in the market with some major national food wholesalers, the company has carved out and kept a niche with loyal customers dating back over the years. This is not only due to the competitive pricing, but also the hands on focus in sourcing key quality ingredients and produce, along with the friendly, knowledgeable and professional service at all times.
Key Strengths:
The business has a long stranding history and reputation which in itself is a great asset to the company. All operations are streamlined with a low overhead business model. The client base is diversified enough to represent a stability in future earnings with the revenue spread across them. The client base has proved loyal over the years, again providing confidence in future earnings from which to build.
Growth and Expansion Opportunities:
The vendor believes the primary route to returning the business to the annual revenues of circa £1Million is by way of capital investment to compete on price for general goods, whilst increasing margins. This could be further advanced by a marketing drive to win some of the many new independent customers across the catchment area. The business is in need of a defined sales strategy and focused Sales Representative, which would drive new customers to the company’s offerings.
Premises:
The business is fully re-locatable and currently operated from a home office, with off-site storage facilities.
Business Hours:
Monday – Friday: 9:00 am - 5:00 pm (Office Hours)
8:00 am – 3:00 pm (Deliveries)
Advertising and Marketing:
The business was originally built on a direct sales approach with site visits to gain new customers, over the years, business has been increased from ‘word of mouth’ recommendation and referral. The business would benefit from a defined marketing campaign and website presence, ideally with on-line ordering facilities.
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.
For the current Financial year, the Turnover is circa £350,000, with a Gross Profit circa £61,000 and an Adjusted Net Profit circa £40,000.
Employees:
The business is currently operated by the vendor, who is responsible for all day-today management, operations and business administration, In support are 2 part-time delivery drivers.
Support and Training:
The vendor will provide training for an agreed handover period.
Reason for Sale:
The vendor is now approaching retirement, and is looking to enjoy a different work life balance, whist handing the business over to new owners who can build on his foundations. | | | | | | FOR SALE | | | | | REFERENCE: | AF148 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
