Businesses For Sale > Business For Sale in Brechin & Montrose, Scotland, UNITED KINGDOM - UK (UK)

AI043-Brechin & Montrose-Ł800,000-The Hardware Stores” DIY Retail Chain 2 Freehold Stores for sale in Brechin & Montrose, Scotland, UK

Brechin & Montrose, Scotland, UNITED KINGDOM - UK (UK)

Asking Price:	Gross:	Cash Flow:
£ 800,000	£ 900,000	Undisclosed

Business Summary:
Business ProfileThe Hardware Stores supply goods and services to the trade and DIY customers, selling household, electrical, decorating, gardening products, tools, fixings, fuel, engraving (https://www.ferburnengraving.co.uk) and key cutting.The business is part of a large buying group, giving it all the benefits of a large multinational, and allowing it to offer a wide range of products at competitive prices to its customers. Currently it offers well in excess of 20,000 product lines from all the market leading companies.The Hardware Stores has over 250 active trade customers as well as a large loyal retail following from the general public who support local businesses in both towns.The current owners, a husband and wife team, are selling due to their wish to retire. However there is an excellent team of staff in place that will ensure a smooth and seamless transition of ownership. Staff include managers and assistant managers who run the business on a day to day basis, so much so that the vendors only work part time in the business, and this is through choice.The business has enjoyed impressive sales and profitability over the years and is being presented as an excellent opportunity for a prospective buyer to capitalise on their hard work and grow the business further. It has a strong asset base (including the two freehold sites) and generates excellent returns.With combined annual turnover consistently in excess of Ł900,000 that generates typical EBITDA of circa Ł200,000 p.a. (pre director drawings) and a net asset position of circa Ł590,000 this is a very successful and profitable business with a sterling reputation.Equipment:The business has its own bespoke database. Sage, EPOS/stock control software so that it can carry out its duties efficiently.Key strengths:• Strong track record of income and profitability• Local independent business providing important services• Over 20,000 different products purchased from over 70 different suppliers• Excellent range of products and services offered• Strong levels of marketing activity already in place, with online advertising, website and its own offers newsletter• Circa 250 active trade accounts plus retailCustomers are always offered helpful and friendly service from the experienced staff, resulting in a high percentage of repeat business. Its excellent locations mean this very successful business features a constantly growing base of satisfied clientele and accounts.There is constant high demand for its products and accessories, leading to a consistently strong financial performance, making this Company an exceptional investment opportunity.Key Opportunities:New housing developments proposed in the Brechin and Montrose areas, expanded potential customer base• Opportunity to keep up to date with new product launches• Huge potential for Engraving service using social media and website https://www.ferburnengraving.co.uk/• Potential for the business to grow by increasing their social media reach• Deliveries (especially for trade accounts)• Ongoing development of ‘Fair and Square’ newsletter• Potential to grow using the local council’s procurement system• The business’ range of products facilitate the opportunity for developing and introducing new products with little expense as a trial and error productsFinancial performance:The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.The business consistently achieves turnover of circa Ł900,000+ per annum.Resultant gross profits circa Ł300,000 per annum.Typically Adjusted d EBITDA circa Ł200,000 per annum (pre-director drawings)Net Assets circa Ł590,000 (comprising freehold properties circa Ł360,000 and high quality stock circa Ł230,000).Equally impressive figures have been posted over previous years as the business enjoys high levels of repeat business from its loyal customer base, benefitting from the fact it serves both trade and retail clients. There is huge potential to develop this business further. The vendor is pretty much reactive in their approach to business these days and there is huge scope to maximise additional opportunities that exist within its current customer base and beyond.Because it is an exempted industry the business has continued to operate during the coronavirus epidemic and has seen its sales increase Ł144,347 in total compared to corresponding months last year.

Number of Employees: 08FT

Facilities / Terms of Lease: The business operates from 2 prime retail sites in the town. Both sites are freehold with a combined freehold value circa Ł360,000. The Montrose property is set over two floors, extending to circa 2000 square feet. The Brechin property is a detached unit set over two floors, extending to circa 5200 square feet. Both properties benefit from full CCTV systems, along with computerised EPOS till system.

Potential Growth/Expansion: The market for workwear is growing. It is becoming more and more important for companies and their staff to portray the correct corporate image. This market is also supported through legislation in the way of health and safety and this presents ongoing opportunities to the business in the short, medium and long term, such is its wide and varied client base.

Competition: The business does limited self-promotion and marketing, preferring to rely on repeat business and referrals to generate sales. However it does have catalogues/promotional material supplied by its supplies as well as its own newsletter and limited social media presence. There is huge scope to increase its exposure should a new owner so require not least with the introduction of a website.

Owner willing to train: The current owner would be happy to provide full training and support at handover. This should be a relatively simple transistion as the busines has excellent staff and systems in place.

Seller Reference Number: AI043
BusinessMart.com Listing Number: 253215

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For more info contact:

Andrew Hudson
Turner Butler
01895 25 6000

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