AMERICAN MOTORHOME SALES & SERVICE TOTALLY UNOPPOSED POSITION WITH GREAT POTENTIAL FOR FURTHER GROWTH & PROFIT

  • Leasehold Price: £245,000
  • Annual Net Profit: £50,000
  • Annual Turnover: circa 250,000
Featured For Sale
Sittingbourne, Kent, England
Seller Ref:PAX0422070847
Featured For Sale

AMERICAN MOTORHOME SALES & SERVICE TOTALLY UNOPPOSED POSITION WITH GREAT POTENTIAL FOR FURTHER GROWTH & PROFIT

Sittingbourne, Kent, England
Seller Ref:PAX0422070847
  • Leasehold Price: £245,000
  • Annual Net Profit: £50,000
  • Annual Turnover: circa 250,000

Overview

Seller Ref: PAX0422070847

Description

If you are looking to acquire a turnkey business that is up and running with huge potential, this is it. The nearest competitor we have is over 150 miles away, and due to our current location, we have customers from all over Europe and the UK.

A vast customer base with constantly returning customers. Our expenditure on advertising is nil; all of the advertising is done for us by our reputation and existing customers recommending us.

Superb reviews on things like Google plus many other feedback websites, drive customers towards us time and time again. We have many varied income streams, including American motorhome servicing, American RV sales, a main Dinitrol rustproofing agent (have been in this field for over 35 years) and again, in this field no one does what we do with the equipment we have.

We are a main LPG reseller, and as such we have an owned installation with over 4000 litres of dispensing equipment (just recertified).

There is the chance if a new owner wishes to increase this vastly, this is due to the fact that where the operation is located is not on mains gas, as such, residents use Calor gas, so you could sell direct to them at great prices and make a good profit.

Customers arrive for LPG from all over Kent, Sussex, and even Surrey, so the opportunity is almost limitless.

Many websites driving business to us, all linking back to the main site again. Current location is not crucial, as such the business could be relocated as the customers would be more than happy to follow us wherever we go.

It may sound a little arrogant, but to be honest, this is a real chance to enter a market that can show a great profit margin moving forward. There would be an opportunity to increase our labour rates as no one comes anywhere near us. The last time we raised rates was in 2012, so you can increase these and still not lose custom.

We have a fully equipped workshops with heavy-duty equipment and many specialist tools, all of this can be made available to the right purchaser. The owners are looking to retire, however, for a consideration, we would be happy to stay on for a while to offer information and assistance if and where required.

If the purchaser has any experience with commercial vehicles or buses/coaches, this will be a breeze to enter into a different marketplace. If you only have car experience, again we can assist to help the buyer through the early transition stages.

The current premises are being offered to us on a new lease with break clauses, so flexibility is ensured if you wish to move onto a bigger or better location for you. The current building is 4,300 square foot on an industrial area along with a large outside storage area.

All the electrics within the building have recently been renewed and all to latest spec. Subject to contract and time constraints, you would be in a position to negotiate with the landlord as to what you wanted from a lease.

The business has shown fair to good profits in recent years, it is only our desire to retire that has stopped the owners investing more time and money into the business.

This possibly shows in the current opening times, this is 1030-1700hrs Mon-Fri, no bank holidays or weekends, if the new owners wanted to extend it, you may well attract other customers, but we are happy as we are, they just come back when you are open!

The company has operated vehicle recovery in the past which was very lucrative, especially with other recovery agents not understanding American motorhomes, as such we would receive calls from the police (due to the proximity of both the M2/A2/M20 & M23/M26/M25.

We have also had many calls from the shipping lines at Dover docks, the possibility to expand is without question open to the new owner. We stopped doing recovery after COVID as our regular driver unfortunately succumbed to COVID.

If a new owner wanted to import American motorhomes, we have a good contact base in the USA together with a link with a good shipper. It can be a very good profit margin, but we have always prided ourselves on offering unbeatable value for money together with exceptional service, hence the reputation.

The business has no debt, all stock and equipment is owned outright, major lifting items have been on a service contract since new, as such they are fault-free. The main 27-ton vehicle column lifts have just had a major service and inspection, and passed 100%

It is being offered as a going concern or we may be happy to negotiate other types of sale.

LEGAL NAME: MERCURY CLASSIC CARS LTD/T/A MERCURY RV
COMPANY NUMBER 3347953
ESTABLISHED: 09/04/1997
PREVIOUSLY KNOWN AS: MERCURY PASSENGER SERVICES LTD
CHANGE OF OPERATION TO AMERICAN MOTORHOMES: CIRCA 2003
VAT REGISTRATION NUMBER: 683 6411 21
CURRENT WEBSITE: http://mercuryarv.co.uk or http://mercuryarv.com
various other websites are owned but revert to the above

POSITIVE ELEMENTS:

IN TERMS OF OUR GEOGRAPHIC LOCATION, WE ARE WELL PLACED TO CATER TO CUSTOMERS IN THE UK, IN ADDITION, DUE TO OUR PROXIMITY TO THE CHANNEL PORTS, THIS AGAIN ALLOWS EASY ACCESS FOR EUROPEAN CUSTOMERS
REPUTATION IS KEY TO THE PERCEPTION OF OBTAINING AND RETAINING CUSTOMERS, AS SUCH WE HAVE ONE OF THE BEST REPUTATIONS IN THIS INDUSTRY, SUCH THINGS AS REVIEWS ON GOOGLE ETC WILL DEMONSTRATE THIS
CUSTOMER RETENTION: WE HAVE RETAINED NEARLY EVERY CUSTOMER WE HAVE EVER DEALT WITH, THEY RETURN TIME AND TIME AGAIN
INDUSTRY KNOWLEDGE: WE HAVE AN EXCELLENT REPUTATION FOR OUR KNOWLEDGE WITHIN OUR SECTOR, SUBJECT TO SALE CONDITIONS, THIS COULD BE RETAINED WITH MYSELF TO ASSIST WITH ANY TRANSITION
CORPORATE CUSTOMERS: WE HAVE AN ENVIABLE REPUTATION WITH LARGE CORPORATE CUSTOMERS SUCH AS INSURANCE COMPANIES, ONE OF WHICH WE HAVE JUST SECURED BEING LV AND HIGHWAY INSURANCE. WE HAVE STATED TO THEM ‘IF GOD MADE IT WE ARE STUCK, BUT IF MAN MADE IT, WE CAN REPAIR IT’ THEY LIKE THIS ATTITUDE, AND TO DATE WE HAVE EXCEEDED THEIR EXPECTATIONS WHICH HAS BROUGHT FURTHER WORK
WE HAVE A LOGICAL AND CARING ATTITUDE TOWARDS CUSTOMERS, WHICH HAS SERVED US WELL, WE COULD FURTHER USE THIS REPUTATION TO ENHANCE THE OPERATION
WHILST WE TURN AWAY A GREAT DEAL OF WORK, DESPITE THIS, CUSTOMERS ALMOST BEG US TO FIND THEM A SLOT. WITH MORE STAFF WE COULD EASILY QUADRUPLE THE THROUGHPUT AND OBVIOUSLY THE PROFITS
WE HAVE A VERY GOOD TURNOVER OF SALES OF LPG GAS, BEING THAT WE ARE ONE OF VERY VERY FEW LPG DEALERS IN THE AREA, SO MUCH SO THAT WE HAVE CUSTOMERS DRIVE FROM SURREY AND SUSSEX FOR US TO FILL THEM WITH LPG. FOR US IT IS A GOOD PROFIT. WE PURCHASE LPG BULK AT .55ppl AND RETAIL IT AT .93ppl, WE RETAIL CIRCA 50,000+LTS PER ANNUM (2022), BUT THIS IS CONSTANTLY INCREASING AS MORE OF THE OUTLETS TAKE ON ELECTRIC CHARGING POINTS INSTEAD OF LPG. OUR NEAREST COMPETITOR FOR LPG IS MORRISON’S SUPERMARKET, THEY RETAIL LPG AT .997 ppl, SO YOU CAN SEE WE ARE EVEN MORE COMPETITIVE! THE DISPENSING EQUIPMENT IS OWNED AND IS SIMPLY ON A CONCRETE BASE, SO COULD BE MOVED IF YOU WISH TO RELOCATE THE BUSINESS
WE NO LONGER TAKE CREDIT CARDS DUE TO THE COSTS, THIS HAS NEVER PROVED TO BE A PROBLEM WITH CUSTOMERS, THEY SIMPLY EITHER PAY CASH OR BACS
WE HAVE A GOOD STOCK OF USABLE PARTS ALONG WITH MANY DESIRABLE CONSTANT-USE PARTS
A DIESEL CAT FORKLIFT WITH LIFTING CRADLE
ALL STOCK IS AVAILABLE, AND ALL OF IT IS GOOD USABLE STOCK, PLUS WE ARE NOT LOOKING FOR A SILLY HIGH VALUATION ON THE STOCK EITHER
A SET OF COLUMN LIFTS CAPABLE OF LIFTING UP TO 28 TON CLEAR OF THE FLOOR TO CIRCA 8 FOOT HIGH. THESE HAVE BEEN OWNED SINCE NEW AND HAVE ALWAYS HAD A CONTRACT MAINTENANCE/SERVICE AGREEMENT ON THEM. THEY HAVE ALSO JUST HAD A FULL INSPECTION AND PASSED WITHOUT ISSUE
MANY SPECIALISED TOOLS ARE AVAILABLE FOR WORKING ON AMERICAN MOTORHOMES
WE ARE A MAIN AGENT FOR DINITROL RUSTPROOFING AND THE ONLY AGENT IN THE UK TO CARRY OUT APPROVED TREATMENTS ON EITHER COMMERCIAL VEHICLES OR AMERICAN MOTORHOMES (https://www.dinitroldirect.com/treatment-provider/mercury-rv) WE HAVE ALSO CARRIED OUT CORROSION PROTECTION FOR JAGUAR LAND ROVER DIRECT, RNLI, MANY LAND ROVER DEALERS, COUNTY COUNCILS, SCANIA, RENAULT, PLUS A MULTITUDE OF PRIVATE CUSTOMERS

Mercury RV
www.dinitroldirect.com

OUR NEAREST COMPETITOR IS EITHER IN BIRMINGHAM OR OXFORD AREA
A CONSTANT REQUEST FROM CUSTOMERS IN THE UK AND EUROPE FOR SUPPLYING THEM WITH RV’s
WITH A TOTAL LACK OF DEBT, MANY ACCOUNTS WITH MAJOR SUPPLIERS, BUT NONE REQUIRING PAYMENT
ALL ASSETS ARE OWNED OUTRIGHT WITH NO LIENS, ALL CERTIFICATIONS UP TO DATE
DUE TO THE NATURE OF THE OPERATION, THE BUSINESS COULD BE MOVED TO ALMOST ANY OTHER LOCATION, BUT OBVIOUSLY, MOVING TOO FAR AWAY WOULD NEGATE SOME OF THE FOREGOING BENEFITS
A GOOD SELECTION OF SPECIALIST CONTRACTORS FOR AREAS THAT WE DO NOT WISH TO RETAIN STAFF TO WORK IN, AS SUCH THIS ALLOWS OTHERS TO CARRY OUT WORK ON OUR BEHALF AT A PROFIT TO THE COMPANY
THE AMOUNT THE COMPANY SPENDS ON ADVERTISING IS NIL, WE HAVE NEVER NEEDED TO ADVERTISE, AS SUCH ALL CUSTOMERS COME TO US IN THE MAIN BY WORD OF MOUTH. IF A NEW OWNER WISHES TO ADVERTISE, PERHAPS THEY COULD INCREASE THE TURNOVER SIGNIFICANTLY
OUR CURRENT HOURLY RATE FOR LABOUR IS £62 PER HOUR PLUS VAT, THIS HAS NOT RISEN SINCE 2015, AS SUCH THERE IS PLENTY OF SCOPE TO INCREASE THIS IF DESIRED
WE USED TO OPERATE MOTORHOME RECOVERY, HOWEVER, WE STOPPED THIS AFTER THE COVID EPIDEMIC DUE TO THE DRIVER WE USED BECOMING ILL. WE STILL TO THIS DAY GET INQUIRIES FOR THIS FROM ALL OVER THE UK AND EUROPE
WE HAVE LIMITED HOURS AND DAYS OF OPERATION, WE ARE OPEN MON-FRI BETWEEN 1030-1700, THIS COULD OBVIOUSLY BE EXTENDED/REVISED AS ANY NEW OWNER WISHES, WE DO NOT OPEN AT WEEKENDS OR BANK HOLIDAYS
THE CURRENT UNIT RENTAL IS CHEAP, BUT AS STATED, IT HAS ITS DRAWBACKS. PRESENTLY WE PAY £10,200 PA PLUS £1,200 RATES PAYABLE.
THE UNIT RENTAL IS ON AN ‘IMPLIED LEASE’, AS SUCH THE IMPLIED LEASE CAN BE WHATEVER YOU WANT IT TO BE WITHIN REASON, HENCE THE REASON WHY I AM NOT KEEN TO ENTER INTO A FORMAL LEASE WITH THE LANDLORD BASED ON HIS PREVIOUS PERFORMANCE
GOOD CREDIT HISTORY
WE ARE CONSTANTLY BEING APPROACHED BY OWNERS OF EUROPEAN MOTORHOMES AS WELL AS HORSEBOXES TO DO WORK ON THEIR VEHICLES, AS SUCH A NEW OWNER COULD TAKE THIS ON IF THEY WISHED

NEGATIVE ELEMENTS:

WE DO NOT OWN THE PROPERTY OR LAND
OUR CURRENT LANDLORD IS A FARMER, AS SUCH HE SEEMS TO HAVE NO IDEA ABOUT THE BUSINESS WORLD. HE IS NOW KEEN TO GET US TO SIGN A 3-YEAR LEASE OR SIMILAR WITH THEM, WE ARE NOT GOING TO DO THIS AS WE HAVE BEEN AT THE SAME LOCATION (AFTER A COMPULSORY PURCHASE ON OUR PREVIOUS LOCATION) SINCE CIRCA 2007. WE TRIED BACK IN LATE 2011 TO OBTAIN A LEASE, HE SEEMED KEEN, JUST UNABLE TO MAKE ANY FORM OF DECISION.
WITH THIS LANDLORD WE HAD STATED THAT WE WANTED AT OUR EXPENSE TO REFURBISH THE TOILET BLOCK TO A HIGH STANDARD, LEVEL THE ROADS AND PARKING AREAS, CLAD THE OUTSIDE OF THE UNIT, LANDSCAPE THE GARDEN AREAS ETC ETC, ALL AT NO COST TO HIM, HE JUST COULD NOT MAKE A DECISION. SO WHILE HE HAS NOW PUT HIS DAUGHTER IN CHARGE OF THE ESTATE SIDE OF THE FARM, SHE IS SEEMINGLY MORE INTERESTED IN RUNNING IT IN A PROFESSIONAL MANNER
I AM OF AN AGE WHERE I WOULD LIKE TO STEP BACK MORE FROM THE BUSINESS, I AM NOT THE SORT TO WANT TO SIT IN AN ARMCHAIR AND DIE, SO WOULD BE WILLING TO ASSIST ANY NEW BUYER WITH INFORMATION AND ASSISTANCE WHERE THEY MAY FEEL THEY NEED IT, THIS CAN BE REFLECTED IN THE CONSIDERATION FOR THE BUSINESS AND ALSO HAS POSITIVE HMRC IMPLICATIONS
I AM ALL TOO AWARE THAT ANY BUSINESS HAS A STRONG RELIANCE ON THE PEOPLE WHO OPERATE IT, IT IS FOR THIS REASON THAT I HAVE A VESTED INTEREST TO ASSIST. A PREVIOUS BUSINESS I SOLD TO ARRIVA PLC THEY WANTED TO ACQUIRE ON THE BASIS THAT THEY WANTED TO RETAIN THE COMPANY NAME (IT HAD A FAR SUPERIOR REPUTATION THAN THEIR OWN IDENTITY) AND USE THE LOGO’S ETC PLUS MY SERVICES, THIS WAS DRAWN INTO THE AGREEMENT TO TRANSFER THE BUSINESS TO THEM, AS SUCH NO REASONABLE TERMS WOULD BE REJECTED
THE NEXT AREA OF NEGATIVE WOULD BE STAFFING. WE HAVE A LIMITED NUMBER OF STAFF, ALL ARE OF A SENIOR AGE, AND WHILST THIS BRINGS A WEALTH OF EXPERIENCE, IT HAS THE DISADVANTAGE OF DEATH!!
THE BUILDING WE USE AS A WORKSHOP HAS ITS LIMITATIONS, ONE OF WHICH BEING THE LANDLORD WHO IS RELUCTANT TO EITHER SPEND ANY MONEY, OR ALLOW US TO DO ALTERATIONS, AS SUCH WE ARE FORCED TO USE WHAT WE HAVE
THE OUTWARD APPEARANCE OF THE OPERATION WHEN A CUSTOMER ARRIVES IS NOT GREAT, AGAIN DUE TO THE LANDLORD, HOWEVER WE SOON TURN THIS AROUND WITH THE WORK WE PERFORM AND THE WAY IN WHICH IT IS CARRIED OUT
WE DO NOT CARRY OUT MoT’s, HOWEVER, WE DO RECOMMEND CUSTOMERS TAKE THE RV TO A LARGE FACILITY WHERE I HAVE KNOWN THE OWNERS FOR OVER 40 YEARS. WE RESPECT THEM AND THEY US, AS SUCH OUR CUSTOMER GETS A PURELY FACTUAL OUTCOME AND THEN WE ONLY NEED TO DO THE WORK THAT IS REQUIRED. THE FACILITY WE USE DOES NOT CARRY OUT ANY REMEDIAL WORK. THE CUSTOMERS LOVE THIS AS AN ATTITUDE AS IT CLEARLY DEMONSTRATES WE ARE ONLY DOING WORK THAT IS REQUIRED.

WHO WOULD THIS BUSINESS SUIT?

SOMEONE WHO HAS MOTOR TRADE EXPERIENCE EITHER IN MOTOR CARS/LIGHT VANS OR WITH COMMERCIAL VEHICLES. MY BACKGROUND WAS WITHIN THE PUBLIC TRANSPORT SECTOR, MORE SO BUSES, AS SUCH IT WAS A FAIRLY LOGICAL TRANSITION TO AMERICAN MOTORHOMES AS THEY ARE SIMILAR IN MANY RESPECTS TO COACHES
STAFF DO NOT HAVE TO BE EXPERIENCED IN AMERICAN MOTORHOMES, WITH THE RIGHT PEOPLE THEY CAN QUICKLY TAKE ON BOARD ANY DIFFERENCES, AGAIN I COULD FOR THE RIGHT CONSIDERATIONS ASSIST IN THE DAY-TO-DAY OPERATIONS
AS IT IS NOT A HIGH-PRESSURE ENVIRONMENT, IT WOULD BE IDEAL FOR SOMEONE WHO WISHES TO OPERATE A BUSINESS WITHOUT ALL THE IMPLICATIONS OF A MOTOR FRANCHISE OPERATION OR COMMERCIAL VEHICLE/BUS WORKSHOP. IN THE MAIN I HAVE OF LATE OPERATED IT AS A ‘LIFESTYLE OPERATION’ WITHOUT PRESSURES OR CONSTRAINTS
IT WOULD ALL DEPEND ON WHAT A PROSPECTIVE BUYER WISHES, IF YOU WANT A RELAXED ENVIRONMENT IN WHICH TO WORK, OR SOMEONE WHO HAS OR IS CONSIDERING EARLY RETIREMENT FROM SOMETHING MORE HIGH-PRESSURE, THE ALTERNATIVE IS TO MAKE THE BUSINESS WHAT IT COULD EASILY HAVE BEEN, MORE PROACTIVE AND HIGHER VOLUMES, THE MARKET IS THERE, IT IS UP TO SOMEONE TO TAKE IT AS FAR AS THEY WISH
IT NEEDS SOMEONE TO FRONT THE OPERATION OF A PERSONABLE NATURE AND WITH INTEGRITY FOR WHAT THEY DO AND WHAT WE HAVE DONE, IN AN IDEAL WORLD, SOMEONE WITH DRIVE AND AMBITION TO PROGRESS THE BUSINESS FORWARD

HOW MUCH IS THE BUSINESS WORTH?

ANY BUSINESS IS OBVIOUSLY ONLY WORTH WHAT SOMEONE IS WILLING TO PAY TO ACQUIRE THE GOODWILL OF SAID BUSINESS. AS I SEE IT, THIS BUSINESS HAS ESTABLISHED ITSELF IN AN ENVIABLE POSITION WITHIN A RESTRICTED MARKETPLACE. TO HAVE A BUSINESS WITH AN ALMOST TOTAL LACK OF COMPETITION IS VALUABLE, BUT IT IS ONLY VALUABLE IF YOU CAN MOVE IT FORWARD AND SHOW A PROFITABLE OPERATION. THE WAY THE BUSINESS HAS OPERATED OVER THE LAST FEW YEARS HAS NOT DONE THIS, HOWEVER, I HAVE BEEN SENSIBLE ENOUGH TO NOT DESTROY IT FOR SOMEONE ELSE TO BE ABLE TO TAKE IT FORWARD. I AM LOOKING FOR A SENSIBLE VALUATION BASED ON WHAT IT HAS AND THE POSSIBLE POTENTIAL IT HAS. THE TURNOVER HAS BEEN RESTRICTED OF LATE DUE TO MANY FACTORS, ANY POTENTIAL BUYER WILL KNOW THAT ACCOUNTS DO NOT REALLY REFLECT THE TRUE STATE OF THE BUSINESS NOR THE PROFITABILITY, IT THINK IT IS SUFFICE TO SAY IT HAS COMFORTABLY SUPPORTED MYSELF AND FAMILY/LIFESTYLE FOR MANY YEARS, VISION, DRIVE AND AMBITION IS WHAT IS NEEDED NOW.

Leasehold Terms:
The current premises has been occupied for over 19 years on an implied lease, as such can be what you want it to be. A new lease is now being offered on a 3 or longer year basis with a 6 month break clause if both parties agree.
Trading Hours:
Mon-Fri 1030-1700hrs.
Number of Employees:
3
Support and Training:
Whilst this is a sale based on my desire to retire, we are happy to stay on to guide the new owners into how everything works. If the new owners have experience with the motor trade, this should not be a daunting task with our help and guidance. All our customers are helpful and not like most motor trade customers. The business operates as an extremely low pressure environment, the chosen business hours show that. We can guide any new owner into how to relax running a business. I hate stress, and this is a great business to become relaxed in if you wish. The chance to move the business forward will be the new owners opportunity to show what you can do with just a little more effort!
Location Details:
The business is located on an industrial area with no restrictions. Located between Sittingbourne & Faversham just off the main A2 in the village of Conyer ME9 9HH
Is this business relocatable:
Yes
Is this business home based:
No
Is accommodation included:
No
Is this In administrative/receivership:
No
Is stock included:
Stock at valuation
Website address:
http://mercuryarv.co.uk

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