Manufacturing businesses for sale in Newmarket

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C. McFarquhar (Apr 2017)
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Leasehold Price: £275,000 Price Reduced Sale Agreed Annual Turnover: £2,077,720 Annual Gross Profit: £764,514
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Business Description
Profit & Loss 30th June 2017
Annual Turnover £2,077,720
Gross Profit £1,400,000 Before Wages
Accounts Available After Viewing
Part Of Proceeds Go To Children's Hope Foundation
35 Sales Territories With 5 Team Leaders
Closed Weekends - Short Trading Hours
45 Vans Available
5* Food Hygiene Rating
Handover Period Offered
Blacks Brokers are pleased to bring to the market this manufacturer and distributor of flapjacks, muffins, cookies and brownies and re-bagged confectionery. The products are offered for sale through honesty boxes located in places of work through England and Wales. Differentiation is ensured by the method of product merchandising, unique in its sector. As is usual in this sector, part of the sales proceeds are donated to charity, which is The Children’s Hope Foundation. The business operates on a national basis and has its headquarters and manufacturing operation just outside Newmarket in Suffolk. It has 4 regional distribution points located in Nottingham, Pontypool, Wellington and Stoke-on-Trent.


The proposed sale is for 100% of the issued shares of HLJ Foods Ltd, which trades as Appealing Snax. The company manufactures its own flapjacks, muffins, brownies and cookies to their own recipe. The recipes used are held in very high regard and ultimately add to the value of the business. The end product is confectionery that is distinctive and notable for its taste, texture and appearance, with point of sale displays in locations that are inaccessible to conventional distribution businesses. In addition the company re-bags and re-brands loose sweets and confectionery to add to its portfolio of products. From production in Newmarket, the bakery and confectionery is then distributed nationwide through five regional distribution warehouses. These are based in Stoke-on-Trent, Nottingham, Pontypool and Wellington as well as the central operation in Newmarket. Point of sale displays (honesty boxes) operate at thousands of locations within the distribution area and are displayed in places as diverse as offices, shops, warehouses, schools and hospitals. Sales are conducted on an honesty basis with purchasers paying a fixed amount per product into an honesty box. The incentive for end users is that not only is the confectionery of a very high standard, but a proportion of turnover goes to charity. The charity chosen is the Children’s Hope Foundation. Additionally the company hosting the honesty box provides an attractive benefit to its staff. Stock is topped up on a regular basis by an operator employed by the company from stock sent from the central location in Newmarket. The business is currently looking to expand its operation and has identified Huddersfield and Newcastle upon Tyne as potential new regional bases.


The business currently operates with a central hub just outside Newmarket in Suffolk. There are distribution centres in Stoke-on-Trent, Pontypool, Nottingham and Wellington. The central hub of Newmarket was chosen by the current owners simply because of its proximity to where they live. Logistically there is no reason why the operation could not be moved anywhere with good transport links in the country. This therefore makes it an ideal acquisition for relocation or for somebody looking for an addition to their portfolio product line or indeed an entry into the confectionery and bakery markets.


The principal directors and our vendors, are now looking to retire. Our clients are willing to stay on with the business for a period of time to ensure a smooth handover and offer continuity to the client base and staff.


The business currently operates from two adjoining commercial units on an industrial estate on the outskirts of Newmarket. The lease is a seven year fully repairing and insuring lease which commenced in 2016. The annual rent is £31,500 per annum. The lease has a three year rent review. The distribution operation in the four regional locations have occupation agreements and leases. The combined rent is £27,000 per annum.


The Newmarket operation is 2 commercial units on a commercial estate and are of single-storey construction. Predominantly they provide a storage and manufacturing area, however there is a small office, w.c., facilities for making hot drinks and heating meals and a staff rest area. The four regional warehouses are all commercial units intended for product storage and restocking points.


The business currently operates with 48 staff, 5 of whom act as regional Team Leaders and are responsible for managing the warehouses. The bulk of the staff are responsible for collection and delivery of product to the display sites. The remaining staff are involved in production and administration.


Un-audited accounts for the year ending 2017 are expected to show a turnover of approximately £2 million. Gross profit before wages is approximately £1.4 million whilst earnings before interest, taxation, depreciation, amortisation and directors’ emolument, is approximately £200,000. The business operates with 45 vans which are available by negotiation. Manufacturing equipment is included and the principal items are listed below


This is a well-established and highly regarded confectionery and manufacturing business that has elected to take an ethical stance within the market. The recipes used for its products result in confectionery that is of the highest order and therefore has an appeal that is not reliant on the fact that buyers are also contributing towards charity. The fact that there is a charitable donation made allows presentation of the product in locations that are not accessible for conventional commercial enterprise. This proposition will be of great interest to similar businesses looking for instant expansion or indeed with food manufacturers looking for an addition to their portfolio of product range. Fixtures:
Computer regulated cutting machine

Flapjack mix tray depositor

Cookie mix depositor

Multi-head muffin batter depositor

Mixers x 2

Double melting tank

Single rack oven

Double rack oven

Joni Steam Kettle


Vertical fill bagging machine

Multi-head weighing machine with conveyor

Metal detector

Check weigher
Trading Hours:
Mon To Fri - 7am - 3pm

Tenure: Leasehold

Location Details: Newmarket

Leasehold Term: Rent: £605 Per Week

Downloadable Documents

Listed by: Blacks Business Brokers Limited

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