Swan Corporate is pleased to take to market a manufacturer and direct-to-consumer online retailer of high-quality, custom-made kitchen furniture based in the Midlands.

In its last full financial year, the company turned over £560,000 and made a profit of £170,000 after the previous year’s corporation tax had been paid. The company’s trade was not adversely affected by the COVID-19 pandemic rising by 37% in that year.

Our client has successfully avoided the trap that many initially artisanal businesses do when they scale – lose their passion for quality. They have retained this and through intelligent sourcing and cash flow management, they have maintained quality levels while building out a business whose profit margins are way in excess of the typical margins most businesses enjoy.

A new owner will benefit from a website with annual traffic of nearly 60,000 visitors. Divide visitors by revenue and each visit is worth £12.20 to the company. But there’s significant room left yet to improve website performance and conversion rates. To arrange a meeting with the owner, please get in touch with us.

Range of products

Our client offers a range of farmhouse- and country-style kitchen furniture made on-premises to their own designs and sold over the internet directly to clients.

Their current range is of the highest quality, made to order and consists of:

• Tables (dark oak and natural finish, 24 styles) – farmhouse tables, round tables, hall tables and coffee tables
• Seating (24 styles with accompanying cushions, rugs and throws) – hairs, benches and stools
• General kitchen furniture – dressers (finished in either graphic or railings) and kitchen islands
• Cushions and sheepskin throws – custom-made cushions and 4 styles of throw

All items are made from reclaimed wood.

Trading premises

The company operates from 2,400ft2 commercial premises with 800ft2 office space, a 400ft2 furniture production area and the remainder as a showroom. There is also a storage area and wheelchair-friendly toilets. The roof has solar panels fitted onto it.

The remaining lease is 4.5 years with rent at £2,050pm. No business rates are payable. There are enough parking spaces for 5 cars and a lorry can turn and park on the grounds of our client’s premises.

Financials

The new owner will benefit from an average monthly cash flow of £56,020 including VAT arriving in the company’s bank account every week in the last FY.

The company has grown from a T/O of £75,000 in 2018 FY to £560,000 in its 2021 FY through careful management of cash flow and without having to resort to bank loans or overdrafts. Its ability to generate cash will provide funds to a new owner to expand.

Net pre-tax profit margin 38% in last financial year thanks to tight cost-control and cash flow management.

Sales and marketing

The website attracts 4,600 visitors a month and is responsible for all of the company’s sales. Traffic is up from 2,600 in May 21. With further investment in marketing the website and its operations, traffic volumes could increase with the average value per visitor soaring.

The average order value across the business is £1,600. Average order values made by clients over the telephone are 2% greater than internet orders.

There is substantial room for improvement on the site’s SEO and conversion levels.

Find out more

To find out more about our client, please fill in the contact form below.