Import And Supply Of Leather To The Equestrian Supplies Industry
Price:
Leasehold - £1,250,000
Business Type:
Retail businesses, Service Businesses
HEADLINE SUMMARY
WEST MIDLANDS
IMPORT AND SUPPLY OF LEATHER AND ACCESSORIES MAINLY TO THE EQUESTRIAN SUPPLY INDUSTRY
• Established 40 years
• Turnover £1,757,241 (2011 Draft)
• EBITDA averaging £222,000 per annum over the last 6 years (£275,000 2011)
• Leasehold £1,250,000
• Reference: 1245WS
BUSINESS SUMMARY
This consistently successful company has developed an excellent reputation for the import and resale of leather, servicing the needs of both trade and private customers. The majority of customers operate within the equestrian industry, manufacturing saddles and accessories. In addition, leather is also supplied for the production of fancy goods, and is also used to provide flooring and interior design.
Trading from warehouse and office premises located in an area of mixed residential, retail and commercial use in Walsall, West Midlands, customers are generally drawn from the locality, although a number travel significant distances. The premises are extremely spacious and afford both secure storage for valuable stock and a pleasant working environment for staff.
Our client has enjoyed a successful trading history spanning the last 40 years. During this period, the business has generated very significant and consistent profits. The customer base is extremely well spread and cash flow positive. In financial terms the company is exceptionally strong, with a consistently high EBITDA figure averaging £222,000 per annum over the last 6 years, ensuring excellent ongoing earnings for a new buyer. Overall gross profit margin is currently 21% and the adjusted EBITDA margin 16%. Costs are extremely well contained, with low overheads.
Over the last 10 years in particular the company has both consolidated its position within the market place and developed a number of new customers. Overall, the market for leather is strong and likely to expand with potential customers being drawn from a wide range of industries beyond the existing equestrian niche.
The company would be an ideal purchase for a similarly sized or larger corporate with a good knowledge of the industry and with an acquisitive growth strategy. Such a move would give access to a company with solid financials and a reliable staff complement. The business would also appeal to a rival firm, or alternatively, a company operating within a wider leather goods sector, such as a leather goods manufacturer or equestrian supplies company, seeking additional market penetration or range of services. The trading name is well known and respected within the market place.
SCOPE AND POTENTIAL
Our client trades very successfully within a specialist niche market, with historic links to the West Midlands area where the majority of customers are located. Business development activity has been limited and it would be possible for a buyer to seek additional customers manufacturing saddles and other equestrian accessories within the UK.
A buyer could certainly focus on additional markets using leather within what is an extremely large sector of the UK economy. Business development activity in this area has been limited through choice, but a buyer with knowledge of the wider leather market place could find this purchase ideal. The basic website could also be updated to include a fully functioning purchase facility offering leather items for purchase. Web based marketing has been fairly limited to date and a more aggressive look at search engine optimization could well win additional business.
A buyer could also consider the benefits of vertical integration and a UK based tannery business could easily bolt the business onto an existing set up. Alternatively, a company manufacturing leather goods could also generate cost savings through integration.
FOR FULL DETAILS PLEASE SIGN AND RETURN THE CONFIDENTIALITY AGREEMENT
An Energy Performance Certificate will be made available upon request of further details where one is required for the business premises.
North Yorkshire
£ 750,000
|
|
Business Services that may be of Interest:
|
|
|