Very Well Established UK Heritage Sailing Charter Company

Very Well Established UK Heritage Sailing Charter Company

More than 30 years continuous trading as a large boat charter company for private hire, trips and special events

Confidentially offered for sale

Ref No: CN061

Location: Essex

Asking price: £210,000 net assets

Asking price includes:

2024 Turnover:                      circa £420,000

2024 Adjusted EBITDA:           circa £68,000 (before Director’s drawings)

2024 Gross Profit:                  circa £287,000

2024 Net Assets:                     circa £129,000

Vessels available by separate negotiation, recent valuations 2x £450,000 each, 1x £220,000

35 years consistent trading

Fully equipped and modern equipment

Excellent repeat customer base

3x Refurbished and historically significant sailing vessels

Knowledgeable, experienced and motivated team

Comprehensive and detailed website

A popular sailing experience for thousands of happy customers

The Business:

This business is very well known among visitors, holiday makers, weekenders and events organisers around the UK as a popular sailing experience, made extra special by virtue of the historic nature of the vessels in use and their stories. They bring to life a bygone age of commercial maritime trade, once vital to local economies along the East coast of England, and they now enjoy new lives as refurbished, comfortable and reliable pleasure vessels for visitors.

The company was established in 1987 by the vendors as a means of preserving important vessels that would otherwise have become another vanished part of British heritage and re-purposed as pleasure craft, carrying passengers rather than coal, grain or straw. When they were built, few would have thought they would still be working well into the 21st century.

Since its founding the company has proven to be a successful and profitable business and this is expected to continue.

Revenue is generated from selling large sailing boat cruises, food and drink to the three types of customer outlined in a following section and from rental income on the yard.

The good cash flow results from receiving most of the charter fees and food income before the cruise.

In December and January the company generates a high volume of voucher and advanced booking sales.

Six staff are on the payroll, four crew members and two office staff. Hostesses and catering staff are employed on zero hours contracts for the season.

The Business is prudently managed, with many thousands of happy customers and provides services that include:

Regular visitor trips: These are a mix of daily cruises that can include end of day sunset trips, coffee, breakfast and other special interests

Private Hire: This is available and popular for special events including weddings, corporate events or social gatherings.

Multi day stays: Multiple stops and longer cruises for those who wish to enjoy the heritage cruise for a little longer.

Customers:

Customers are divided into three main types:

Public Cruises - 55% of turnover

Chosen by the public from a varied programme of cruises from various locations, ranging from £32 to £130 per head. These are sold mainly through the website or from the offices on the Quay (with a passing public numbering in their many thousands).

Extra cruises are simple to add on at short notice.

Private Hire – 14% of turnover

Customers wishing to celebrate a special birthday or anniversary or a wedding reception find the barge a memorable venue for a number of reasons. On average they spend £3000 per function including food and drink. Mostly hire at weekends.

Corporate Customers – 8% of turnover (16% pre-Covid)

They vary from clubs and organisations looking for a sociable day out, to companies rewarding staff or entertaining clients. Mostly hire mid-week. Companies tend to spend well on food and drink.

Employees:

Office:

1.Managing Director (Part time).

Over the winter the Managing Director concentrates on planning (all areas), strategy, new collaborations and products.

From April to October, most of the time is spent on overseeing smooth running of operations and processing income.

Acts as bookkeeper (through choice) including payroll, VAT, accounts, HMRC, pensions etc.

Operations and Licensing:

1x Manager for all dealings with the MCA (Marine & Coastguard Agency).

Office Staff:

1x Part-time (20 hours)- would take more hours if offered.

Day to day processing of enquiries, bookings, admin, keeping staff and barge diaries up to date; is able to help with transition and train any new office staff.

Vessels:

3x MCA Qualified Skippers.

4x relief skippers that live locally.

Mates and Maintenance Team:

1x vessel Manager, qualified BML skipper and has served a shipwrights apprenticeship

1x Mate responsible for preparing for charter and basic maintenance of the machinery and equipment.

Extra labour is employed as and when needed. There is a pool of extra enthusiastic crew that can be called upon.

Seasonal Hostesses:

Seasonal hostesses with flexible hours and an understanding that they are available for every charter. Run front of house and the bar and help with the catering team.

Key Strengths:

The business has many strengths including:-

·         Enviable reputation.

·         Customer base.

·         Exceptional customer feedback.

·         Repeat business levels and referrals.

·         Significant investment in infrastructure.

·         Highly skilled and loyal team.

·         Adaptable and fast reacting to customer needs.

·         Established visitor and vacation location.

Growth and Expansion:

The business has enjoyed increasing trade and this is expected to continue in light of its growing and loyal customer base.

The company engages in local advertising and social media promotional campaigns and is well positioned to take maximum advantage of expected growth as it occurs as it has the necessary infrastructure in place including a comprehensive and attractive website that includes enquires, ticketing and reservations facilities.

The business has the ability to easily maintain its current turnover but with new owners it is believed that within a few years trading could reach well in excess of this and with commensurate margins.

Reason for sale:

The business is for sale due to the current owners’ retirement.

Financials:

2024 Turnover:                      circa £420,000

2024 Adjusted EBITDA:           circa £68,000 (before Director’s drawings)

2024 Gross Profit:                  circa £287,000

2024 Net Assets:                     circa £129,000

Vessels available by separate negotiation, recent valuations 2x £450,000 each, 1x £220,000

On the basis that the Business is being sold on a zero cash-zero debt basis, full and up to date management accounts are available upon request.

Asking Price:

The asking price of £210,000 plus net assets is for 100% of all the issued capital of the company. There will be a £ for £ adjustment to the final sale price to reflect any upward/downward movement away from the target net asset price.