• ALSO SELLING COMPLEMENTARY PRODUCTS AND GIFTS
• LONG ESTABLISHED WEB PRESENCE AND HIGH RANKING
• RUN BY HUSBAND AND WIFE TEAM WITH 2-4 PART TIME STAFF
• ENVIABLE TRADING RECORD OF HIGH PROFITS
• OFFERED WITH LEASE OR SUITABLE FOR RELOCATION
The business currently trades from a conveniently located industrial unit on a busy trading estate in the South Hams.
On offer is an ecommerce business with a long established online presence specialising in the sale of waistcoats, the majority of which are made to order.
The business is recognised for providing quality products and excellent customer service. The majority of the waistcoats and neckwear are manufactured to order, on-site, however they also sell complementary products such as shirts, neckwear, engraved gifts and other men’s and wedding accessories. Men’s suits have also been added to the offer during 2016.
The business is run by a husband and wife team who both work in the business; one overseeing all aspects of admin and sales and the other all aspects of order fulfilment. They are supported by 2-4 part time staff. The business currently has a 5 Star rating on the Trustpilot review site and usually rank between no 2 and 4 of 170 menswear suppliers. The Trustpilot score is currently 9.8.
This is a small but exceptionally profitable e-commerce based vertically integrated manufacturer and retailer with plenty of opportunity for growth. The current owners have deliberately managed the business to limit the volume of sales (by increasing retail prices and not actively seeking growth) and have lowered their staff levels, thereby limiting manufacturing capacity, out of lifestyle choice. An increase in sales and capacity, either by a new owner, or by integration into an existing manufacturing company, could increase the turnover considerably and reap even larger rewards.
The vendors ask politely that all enquiries are routed through Adams & Co please and on no account should a direct approach be made to the business.
CUSTOMERS AND SALES:
The company has a large mailing list of previous customers:
• 88% of sales are from within the UK
• 5% to USA and Canada
• 4% within the EU and the balance to the rest of world.
The waistcoat ranges include wedding waistcoats, fun prints, Christmas waistcoats, country style/traditional and evening waistcoats, attracting considerable repeat business and customer loyalty. At any given time around 30% of orders are from past customers.
Management statistics for the years 2015/6 show around 56% of sales are waistcoat sales, 14% neckwear, 6% shirts, 12% engraved goods, and 3% from wholesale customers and supplies to hotels and restaurants (an area with a huge potential for sales growth). The rest of sales are on various other accessories. All sales are generated through the website.
The business has a large growth potential. In particular, by taking advantage of the frequent opportunities that arise for the supply of quality waistcoats to the restaurant/hotel trade. Currently sales are wholly online and generated organically through search engines. Competitive pricing, the addition of Google Adwords, utilising social media, expansion of the shirt, accessory and gift ranges and also by utilising the large database of previous buyers to generate sales through newsletters, would undoubtedly generate increased sales. A new department has been launched during 2016, adding a large range of men’s suits to the website. This stock (including all stock photographs) is being supplied on a dropship basis by a reliable British company.
The website programming, development, hosting and management is carried out by a talented third party that has had a vested interest in the success of this search engine friendly website since its inception (due to the remuneration structure). The support and technical knowledge offered has been ongoing since the creation of the website which has been developed and adapted to ensure integration with transaction service providers, changing user devices and which is modified behind the scenes to adapt to new security protocols and HTML changes, implementing all the latest requirements for successful online trading. Because of the unique service that is offered, future business owners need not be technologically experienced and the on-line shop can be customised and changed to adapt to changing business requirements.
Product photography, online administration regarding customer orders and day to day updating of the site is carried out ‘in house’. Uploading of new products to the site is straightforward and practical, due to the design of the site and is currently carried out, as required, by an outside service provider.
MACHINERY AND INVENTORY:
The extensive inventory includes:
• A desktop PC with comprehensive spreadsheets detailing all stock and sales records and detailed sales analysis
• An Epson Business printer and external hard drive
• Two laptops (one with software and dongle for engraving program) and a further printer
• 3 x Brother industrial flatbed sewing machines with auto back tack, thread trim and knee lift
• A Brother industrial Buttonhole machine with auto thread trim and hole cutter
• 2 x industrial button sewing machines
• An industrial zig zag machine (enabling appliqué) An industrial felling/blind stitch machine
• Professional standard manual button covering equipment
• Waistcoat and neckwear patterns and all cutting /size records relating to past orders for the many repeat customers
• A computer linked automatic engraving machine with all clamps and equipment (including the facility to engrave cylindrical items)
• Stock photography equipment including; mannequin, 2 x floodlights on tripods
• Panasonic Lumix camera with all accessories including tripod and a hard drive containing original and edited stock photographs
• All other ancillary equipment, fixtures and fittings relating to the business.
The vendors traded in menswear hire/retail for a number of years and the business was incorporated in March 1998. The web shop opened June 2003 and the business has traded exclusively online since 2005. Ownership has remained unchanged.
Please note that if a business is VAT registered, all figures exclude VAT.
Sales of £224.641 were reported for the year ended 31 March 2016, generating a gross profit of £144,105 (64%).
This delivered an abridged net profit (before directors’ remuneration, finance charges, professional fees, depreciation and taxation) of £104,388 for the year.
The business has an enviable record of exceptional trading profits over a number of years.
More detailed financial information will be made available to interested purchasers upon completion of a confidentiality agreement and following a brief discussion with Adams & Co regarding financial position and ability to proceed.
REASON FOR SALE:
The current owners of the business have reached the ‘empty nest’ time in their lives with regard to family and financial commitments and now feel ready to enter a new chapter in their lives.
The business is run by a husband and wife team who both work in the business; one managing all aspects of admin and sales and the other all aspects of order fulfilment. The business currently employs two seamstresses who each work on a part time basis as well as 1-2 seasonal /temporary part time staff.
The online shop trades 365 days per year, 24 hours a day. The advertised office opening hours are 9am – 5-30pm. Mon-Fri, with the current owners taking advantage of remote working to take time away from the business during quieter times and for holidays. The dispatch/workroom facility currently closes for 5 weeks per year for owner and staff holidays whilst the website continues to take orders.
(all sizes are approximate & should be considered 'nominal'.)
The business occupies a light industrial unit of standard construction under a pitched, steel frame roof. The property, c1085 square feet (plus 650 square feet on mezzanine levels), has been sub-divided internally and staircases installed to accommodate the following facilities:
Open Plan Central Hall/Store (11.3m max x 5.9m narrowing to 3.1m):
Full height to pitched, steel frame roof with corrugated light panels. UPVc twin panel entrance door to front elevation with glazed panel over and matching UPVc panels to the side. Exposed block walls. Suspended fluorescent lighting. Carpeted.
To the front of the property doors on the left give access to:
Front Office (2.6m x 2.6m):
Wooden entrance door to front elevation. Wooden window to front elevation with internal security grille. Fluorescent lighting. Carpeted.
WC (2.6m x 1.0m):
Fluorescent lighting. Vinyl floor covering. Wall mounted ceramic wash basin. Low flush WC. Fitted double wall cupboard.
Kitchen/Staff Room (3.2m x 2.6m):
Fluorescent lighting. Carpeted. Stainless steel sink unit with single drainer to side, electric water heater over, fitted double cupboard under and shallow fitted cupboard over housing meters and fuse boxes. Separate wall mounted ceramic wash basin with tiled splash back. Roll edged work surface with narrow fitted cupboard under and space for refrigerator. Open shelving unit over. Space for table and chairs.
At the rear of the Central Hall a UPVc door opens to:
Cutting Room/Office/Store (5.9m x 5.8m):
Fluorescent lighting. Vinyl floor covering. UPVc window to front elevation overlooking central hall. Under stairs storage recess. Wooden racking for rolls of materials, cravats, bows, cummerbunds and other stock items. Large cutting table. Secure door to rear elevation for use in emergencies.
From the central hall staircases rise towards the front and the rear of the premises to first floor accommodation as follows:
First Floor – Rear
Machinist’s Work Room (6.0m max x 5.8m):
Sloping steel framed roof with corrugated light panels. Suspended fluorescent lighting. 5 x window panels overlooking the central hall. Carpeted.
First Floor – Front
Engraving Room and Store (6.6m max x 2.6m):
Wooden double entrance doors. Served by Toshiba heater on landing. Fluorescent lighting. Carpeted. Sloping steel framed roof. Window overlooking central hall. High level roll edged work surface accommodating engraving machine with laptop. Wooden staging to two walls for storage of stock of gifts. To far end a step up gives access to:
Further Work Room/Storage Area (3.2m x 2.3m):
Fluorescent lighting. Carpeted. Sloping roof. Window overlooking central hall and glass panel overlooking engraving room. Eaves storage space to one side.
Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.
There is ample parking for staff and visitors immediately outside and opposite the business premises.
The vendors own the long leasehold interest in the premises which are currently let to the trading company at an annual rental of £8,500 pa. A new lease is available to the purchaser. Terms to be negotiated.
ENERGY PERFORMANCE RATING:
0450-0636-8809-2805-1002 Rating 130. Band F
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