Electrical Distributor Supplying Wholesalers Trade & Retail Marketplace | | Blackpool Lancashire | | Electrical Distributor - Supplying Wholesalers, Trade & Retail Marketplace Ref.AD028 Location Fylde Coast,Blackpool Asking Price £225,000 | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 59622
ADVERT IMPRESSIONS : 7,166 TIME(S) | | | | BUSINESS SECTOR: | Wholesale / Distribution | | TRADE TYPE: | Distribution / Distributor | | SALE: | Agent Sale | LEASEHOLD: | £225000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
This substantial and stable business was founded by the current vendors some 25 years ago and during this time it has established itself as a key supplier to the electrical marketplace in the region, enjoying good growth year on year. The business has developed a good range of in-demand products and enjoys some regional exclusivity with key suppliers for items such as lighting and electrical sockets and fittings.
The company currently has 3 ways to serve the market. It started life as a traditional electrical distributor supplying electrical wholesalers in the region with products. This is still a core part of the business but the company has also developed two separate trade/retail sites which complement this perfectly. Together these two areas generate some 66% of current revenues. This side of the business has a broad range of regular clients including tradesmen, contractors, commercial businesses( hotels, restaurants, shops etc) both locally and regionally as well as the general public.
The remaining 33% of revenues currently come via e-commerce. The business developed an interactive website some 8 years ago and supplies a whole host of retail customers both within the UK and abroad. The website is very impressive and secure and the business also enjoys “Top Rated Seller” status on E-Bay such is its commitment to quality and service.
Equipment:
The business utilises an off the shelf computer system designed for this type of business that enables the business to run efficiently. It has also invested within its internet presence and this is illustrated by the impressive ratings and revenues generated via this route. Each retail site is suitably equipped to carry out its duties. All fixtures and fittings are included within the sale price.
Customer Service:
The business manages a diverse range of customers ranging from large commercial customers through to the Great British public and has the systems, stocks, processes and people in place to ensure that both productivity and customers’ orders are satisfied. The most important aspects of retaining customer confidence is quality, availability and speed of supply, which combined are responsible for the businesses excellent reputation.
The business stocks a good range of popular quality stock items which ensures customer satisfaction. This can be illustrated by the fact it enjoys 100% positive feedback as a Top Rated Seller on E-Bay as well as having a loyal and long-standing trade customer base.
Key Strengths:
• Company infrastructure –very well established with strong supply chain
• Multiple revenues streams
• Positive cash flow
• Locations
• Reputation
• Customer base
• Workforce
• Profitability
Growth and Expansion:
The current market for this business is growing and is forecast in the near and longer term for significant growth. Technology is always changing and this business is well positioned to take maximum advantage of this growth and new opportunities as they occur.
There remains considerable scope for an increase in operations, turnover and profit simply by putting in place a long term sales and marketing strategy.
Key Opportunities:
There are many opportunities to develop this business further. By their own admission the vendors recognise the business should be more proactive in terms of sales and marketing activity. There is scope to develop the B2B sales much further both in terms of existing customers and targeting new business. Further development of the already impressive website would also increase sales as would the provision of further complimentary services.
Premises:
The business operates from two well suited retail premises ideally situated with good accessibility on busy routes.
Site 1 is freehold. Freehold valuation is circa £225,000. The freehold is currently NOT included within the sales price but the vendor would be happy to sell it if a new owner so required, subject to negotiation . The retail unit is ideally located on a parade of shops on a main route in a built up area. The site comprises ground floor shop, kitchen and toilets with additional storage unit to the rear (total circa 1150 square feet). There is also a self contained 2 bedroom flat above with separate entrance providing rental income. Rates are circa £1270 p.a.
Site 2 is leasehold/rented. Again ideally situated in a popular parade of shops with ground floor shop, toilets and kitchenette. Circa 500 square feet. Rates are circa £1170 p.a. Rent is currently £34/week. It is understood a new lease would be made available to a new owner if so required.
There is ample parking for customers in and around both parades.
Business Hours:
Monday – Friday: 0830-1730
Saturday: 0900- 1300
Security:
Both sites are secure.
Advertising and Marketing:
The business has undertaken very little in the form of traditional marketing over the years preferring to rely on referrals, repeat business and word of mouth recommendations to generate revenues. In saying that it does utilise some sponsored links on the internet to help promote its website and also sends out a newsletter and various flyers with all internet orders.
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 vendors have invested heavily in the business in terms of infrastructure, time and staff. The business is very well established and generates good levels of profitability and represents a sound investment opportunity to a new owner with a strong customer base and plenty of expansion opportunities. Current turnover is circa £320,000 p.a. Gross Profits circa £150,000 p.a. Adjusted Net Profits circa £56,000 p.a. Typical stock levels are circa £50,000 and this is included in the asking price.
There is also the opportunity to buy site 1 which is also owned by the vendor and would represent a good long term investment . The freehold value of this site is circa £225,000 and includes a self contained 2 bedroom flat. (Please note the freehold is NOT included in the current asking price.).
Employees:
This is a family run business. The two owners work within the business. One is Managing Director and works on a full time basis, the other director operates on a part-time basis (Administration) . The business also employs a manager, an assistant manager and a logistics operative all on a full time basis.
Support and Training:
Full support and training will be provided to the successful purchaser. The vendors would also be prepared to stay on for a extended period, subject to negotiation, if so required.
Reason for Sale:
The vendors are now looking to retire and spend more time travelling. | | | | | | FOR SALE | | | | | REFERENCE: | AD028 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
