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BUSINESS REFERENCE : GP082 / RightBiz ROAD TRANSPORT AND WAREHOUSING BUSINESS | | | | | | Road Transport and Warehousing Business incorporating cold storage area and specialist haulage Confidentially offered for sale Ref No: GP082 Location: Tees Valley, Cleveland Asking price: £695,000 Freehold Included | | | BUSINESS LOCATION: | Undisclosed Cleveland UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Removals & Storage | | SALE: | Agent Sale | LEASEHOLD: | £695000 | | | | | | | | | | | BUSINESS DETAILS: | This business was founded by the current owner in 1976. Originally it was formed as a shipping and forwarding agent, but now specialises in Storage and Transportation of goods for two main contracts. This includes the Cold Storage of product and transportation for their major client, which for legal reasons cannot be named at this point.
The company prides themselves on giving their customers a “ second to none” service which is available on a 24/7 basis.
The coldstore holds 400 pallets and is used by one specific client, who, awarded the company a rolling 6 monthly contract. The owner suggests that there could be an option to negotiate a 2 year contract with this major concern.
The current business schedule of the company means that they are strictly UK based for their haulage side, and at present only deal with the commercial side of the industry. They are in a niche business which enables them the flexibility to handle small but profitable accounts. As you can imagine the company has an outstanding reputation for flexible service and punctual delivery.
Whilst the business is successful and profitable there is scope for expansion. New business has not been sought over the past 5 years, as the owner has been happy running the business with his existing clients. New energy into the company could open up many new opportunities.
Equipment:
The warehouse is circa 7,800 sq.ft. incorporating a 400 pallet cold storage area. The rest of the warehouse is racked out for storage of other items, such as, office furniture, filing cabinets etc.
There is a fork lift truck, 3 x pallet trucks, a carpet boom and pallet racking.
A basic computer system for inventory and wages is included in the office area, together with furniture, desks, chairs etc.
Customer Service:
As the business deals primarily with two major clients, service is a priority and the company prides themselves on this aspect of the business.
Key Strengths:
The key strength of the company is their flexibility and being able to do the right thing at the right time. Having their own vehicles and drivers emphasises the commitment to “second to none” service. The owner has instilled to the workforce the ability to apply themselves to whatever task is put before them. This has been instrumental in the success of the business.
Whilst price is not the single most important factor in this sector of the industry, the company have always given good value to their clients with a competitive pricing policy.
Growth and Expansion:
The owner has reached the stage where he has taken the company to a level and now new energy, ideas and expansion are needed in the business. There are many areas where the business would benefit and that could increase turnover significantly.
Possibilities include: Domestic removals, Commercial Pallet distribution, Expansion of cold store activities, Sub contracting and simply by tendering for new business.
At present the company do not have a web-site or undertake any advertising, there is also no budget for marketing the business.
There is idle space in the warehouse which could be used for storage to bring in immediate revenue.
Key Opportunities:
The opportunities are endless for someone to drive this business forward.
Generally, this business ticks over making a nice profit with low overheads. It is well run and focussed on giving good service to its clients. However it is potentially a business which could utilise its facilities, excellent reputation and contacts to increase its turnover dramatically within a short space of time by being active in trying to secure new business. The warehouse it not used to its full capacity and could quickly prove to be a more valuable asset.
To gain new business a marketing campaign should be introduced, including the creation of a company web-site. Generally being more pro-active in the promotion of the company and its services would reap immediate benefits.
Security:
There is a full alarm system for fire, burglary and security with Redcare Alarm.
Advertising and Marketing:
There is no marketing or advertising carried out at present.
Premises:
The premises are freehold and are offered in the price of the business.
The warehouse is circa 7,800 sq. ft which includes the cold storage for 400 pallets.
Adjoining the warehouse is a general office and a separate small managers office, which are included in the price of the business.
Rates are £6,882 p/a
Business Hours:
8.00 am – 5.00pm
Financial Information:
The business is being offered for sale including the freehold of the property, all fixtures and fittings as an ongoing basis. All financial discussions will take place directly between the vendor under the auspices of Turner Butler.
The business is financially stable with low overheads, positive cash flow and is perfectly poised to make significant growth with the right new owner.
Current turnover is circa £262,000 per annum with a Net Profit of circa £55,000. The current projection for this financial year is similar in both turnover and profit.
Reason for Sale:
The owner is now nearing retirement age and does not feel he has the energy or drive to take the business forward to its next level.
Support and Training:
The current owner will be happy to help with the smooth transfer of the business for an agreed time. | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | GP082 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
