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BUSINESS REFERENCE : CQ41 / RightBiz CQ41-RE-LOCATABLE-£2,500,000-LEADING BRAND OF HAIRCARE PRODUCTS WITH LISTINGS WITH ALL OF THE MAJOR RETAILERS | | | | | | Leading brand of haircare products with listings with all of the major retailers Ref no: CQ41 Confidentially offered for sale Location: Re-locatable Asking price £2,500,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Beauty Salons | | SALE: | Agent Sale | FREEHOLD: | £2500000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established by the current Owner in 1989, following a career in own label retail development with one of the world’s leading hair cosmetics and fragrances companies, this business has rapidly grown to become one of the leading independents in the haircare sector having developed its own unique brand of hair care and styling products.
Launched less than five years ago and aimed specifically at the 18 – 25 target age group this range of products has been developed in conjunction with some of the top stylists in the UK, using some of the best research and development resources. The formulations which have been tried and testd in this business’s own in-house salon for many months prior to launch have been built upon a very sound salon heritage and consequently this product range is considered to include some of the best haircare products on the market. The product range covers all aspects of haircare including shampoos and conditioning, de-toxing and cleansing, de-tangling, straightening, styling and frizz control products. Upbeat, fresh, exciting and enjoyable to use – the brand has a decidedly fashionable, young, edgy image.
This premium brand is currently listed with all of the major national retailers including Tesco, Asda, Waitrose, Superdrug Moss Pharmacy, Unichem Alliance Wholesale and John Lewis, numerous independent regional chains throughout the UK, the Channel Islands and the Republic of Ireland as well as hundreds of independent retail outlets nationwide. Morrisons supermarket chain are also expected to list the range in the near future. Selling at an higher than average price point and affording retailer margins at 50%, this brand is selling in large volumes. Customer loyalty is very high with this business constantly receiving strong testimonials from satisfied customers.
This is a very profitable business. Turnover has grown significantly for every one of the last five years since the launch of this brand. With turnover for the year ending December 2005 in excess of £650,000 with gross margins of approximately £240,000, this represents a signficant opportunity to acquire a leading haircare brand with ready made listings in all relevant major retail outlets.
Key strengths:
In just five years this brand has enjoyed significant growth and can now boast listings in all of the relevant major retailers, selling volume product at an higher than average price point.
With its considerable haircare sector expertise, this business recognizes the importance of branding in this sector. It has invested heavily in brand identity, able to compete on an equal footing with all of the major brands in the UK market. The branding and packaging achieve excellent standout on shelf and contribute significantly to the high levels of consumer awareness this brand achieves. These together with the brand personality are very appealing, particularly to the core target audience of 18 – 25 year olds. The branding is such that this business appears to be far larger that it really is. The business owns the registered trademarks in the UK not only for this brand but a great many others as well.
This brand is considered very innovative, often having been the first into the market with a particular product or brand extension. As a result, it has been able to take risks in the marketplace that perhaps other more mainstream brands have been unable to do. This has contributed in no little way to the excellent reputation and strong relationships this business has managed to forge with its retail trade partners.
This is a low overhead, high margin business. Apart from the Owner of the business, there are only two other full-time employees. By keeping a close eye on salon trends concept development is driven in-house with the actual formulations outsourced to a team of highly skilled development chemists. This business also works closely with a number of outstanding contract fillers, freeing up key resources to concentrate on the in-house testing of products, branding, packaging, marketing and developing and maintaining the all important retail relationships.
Key opportunities:
With the retail branded market currently experiencing significant growth there is an outstanding opportunity to build on the existing products and customer base of this company. With a strong demand for the products combined with a capacity to increase turnover, a new owner contributing fresh ideas and investment in resources will have every advantage of building on an excellent platform. Many of the trade relationships are relatively new and the impact of some of the new listings have yet to be fully reflected in the financial performance of the business. There is excellent scope to build upon these relationships further to increase volume sales as well as also developing the product range, adding to, and replacing products to meet the ever changing needs of the customer base.
Premises:
This business currently occupies very well suited premises including office accommodation and the in-house salon. The premises belong to the Owner of the business and the business will therefore require re-locating.
Advertising and Marketing:
As is mostly required of any brand achieving listings with the major retailers this business has invested significantly in advertising in support of the trade, mainly concentrating on colour display ads in relevant glossy magazines. The brand is also supported with strong and effective PR campaigns concentrated in the relevant trade magazines.
A high proportion of the brand awareness is due to strong word of mouth recommendation, much of it generated by the edgy, fashionable image of the brand. Perhaps its most effective form of advertising, however, is its branding and packaging achieving excellent standout on shelf.
The business also has a very well designed and informative web presence in keeping with the brand identity, and which performs well in all of the major search engines for all appropriate search terms.
Employees:
The Managing Director/Owner is responsible for the day-to-day management of the business supported by a PA and a Hairdresser employed in the salon. The business also calls upon a creative team, a Key Accounts Sales Manager, Regional Sales Agent and an Accountant, all of whom are self-employed.
Financial Information:
The business is being offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Sales revenue has grown consistently over the past five years reflecting the impact this brand has achieved and in the financial year ending December was in excess of £650,000 achieving Gross profits of approximately £240,000.
Full financial information is available on request and subject to the completion of the necessary Confidentiality Agreement.
Reason for sale:
The current Owner wishes to realise the returns on the investment that has been made in developing the brand so successfully to date.
Training and Handover:
The Owner will provide full business familiarisation, training and handover to ensure a smooth transfer of the business, even to the extent of being available in a Consultancy role, post sale, subject to negotiation. | | | | | BUSINESS STATUS: | FOR SALE | | | | | SELLER: | TURNER BUTLER | | CONTACT: | 01895 25 6000 | | REFERENCE: | CQ41 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
