HIGHLY PROFITABLE RETAIL & WHOLESALE CRAFT BAKERY (Low rent / High Profit B
Price:
Leasehold - £275,000
Business Type:
Commercial Property, Food Service Businesses, Manufacturing companies, Retail businesses
The Business
A thriving Retail & Wholesale Craft Bakery supplying in the region of 50 wholesale accounts around Chester and the Wirral Peninsula.
The retail shop is in the same premises as the Bakery giving very easy management.
There is a comprehensive Management Team of experienced and reliable staff who are able to manage most aspects of the day to day operations. There are a Bakery Supervisor, Sales Manager, Shop Manager and Admin Manager in place as well as the 2 current owners who both work full time in the business. There is 1 other Baker plus shop staff, cleaner, driver and a general assistant.
The business is managed by the 2 current owners but could be adequately replaced with an experienced Bakery / Operations Manager and an additional baker. The current owners have a genuine reason for sale.
Working Hours
The production / packing operates Sunday to Friday 6am – 5pm
Deliveries operate Monday to Saturday
Shop operates Monday to Friday (7.30 – 3pm)
No night work or unsociable hours
The Premises
The business is ideally situated on the Wirral with excellent road access to Chester, Liverpool, North Wales and the M56.
The Bakery and shop are well established in the local area having been producing products from 1968 from the purpose built premises near the entrance of a busy Industrial Estate.
The premises consists of a retail shop, production area, a packing room & store room, slicing room, despatch area, large office, exterior storage containers, a large secure area for deliveries, staff parking, vans etc and a large customer car park to the front. The total interior area is in the region of 2000 sq ft.
The premises is very well equipped for it’s current level of trade with a replacement value of approximately £72000 for the fixtures, fittings, equipment and vehicles. An inventory will be available at time of viewing.
The business benefits from a secure 66 year lease with 22 yrs unexpired. The ground rent is £5,900pa for the remaining 22 years with no reviews.
The business owns the building which can be used as collateral for borrowing purposes and is valued in the region of £100,000.
The Landlord is open to negotiation to any changes of use, building works or issuing a new 99 year lease if required.
Stock at Valuation.
Sales
The sales are made up as follows;
Retail £2100 pw
Wholesale 7-8,000pw
The current owners have grown the business from approx £4000 pw since acquiring in 2007 to it’s current sales but believe the site can accommodate up to £1million pa.
The wholesale delivery round is made up of 1 full time driver (6 mornings) and a 2 day per week round delivering to customers such as Aldi, Spar, Nisa, Premier Stores, hospitals, schools and Independent retailers and caterers.
There is considerable scope for expansion of this part of the business without further investment in vehicles. The Sales Manager is only working 1 day per week looking for new business as the current owners have decided to limit too much further expansion for the foreseeable future.
There is little competition in the local area and no other local craft baker offers the range of products or service this company offers.
Currently there is only one customer in Liverpool and few in Chester which is a massive opportunity for considerable growth on the doorstep.
Accounts
There are accounts available at the time of viewing.
There is adjusted operating profit IRO £70,000 for year end June 2011 and projections for £85,000 for 2012.
Summary
A fantastic opportunity to buy a business that is currently very profitable but in a position to grow without much further investment. There has been a great deal of work put in place as far as management infrastructure and reinvestment to allow the business to flourish.
Remember there is equity to be released from the building to assist with funding requirements.
The current owners would be available for an agreed hand over period if required and will openly and honestly discuss the business with interested parties.
22 years remaining on a 66 year lease. Ground rent £5,900pa with no further reviews.
Landlord will consider new 99 year lease if required.
North Yorkshire
£ 750,000
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