Independent Timber Merchants Including Manufacturing Shop For Sale

Business description

Independent Timber Merchants including Manufacturing Shop with all Machinery

Established in 2003 by the owner, the business is divided into two sections, the timber merchants and the manufacturing workshop.

The merchants supply hardwood, softwoods, plywoods etc to construction company’s, fencing contractors, joinery shops, other timber merchants, DIY retailers and large multiples in the local area at competitive prices.

The manufacturing shop is a subsiduary of the timber merchants providing them with skirting boards, door frames which are primed and laquered which are made to order and then sold on by the timber merchants to their customers.

The business has gained an excellent reputation for its flexibility and competitive prices which have helped in gaining customer loyalty, repeat orders and new business from referalls.

The foundation blocks are all in place for new owners to take the business forward and with a small amount of investment the company can immediately improve its profit margins by simply improving its buying power.

Key Strengths:

This is a well established turnkey business with the advantage of not only a timber merchants dealing with the trade, but a manufacturing shop providing the merchants with finished products, such as door frames and skirting boards, which are sold on to their customers.

The business has a growing base of circa 120 active trade customers with many returning on a regular basis. Their reputation is outstanding with s short but successful history of trading. There is great potential to grow this business simply by investing in a larger stock holding.

Financial Information:

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 turnover is circa £3,088,000 per annum with Net Profits of circa £123,000.

Property information

Property:

Leasehold

Lease terms:

The lease expires in 2011 with an option to extend. Rent is £84,000 per annum with rates of £12,000 per annum.Rent is £60,000 per annum with rates of £….

Location:

There are two premises within the company. The timber merchants is housed within a modern 30,000 square foot warehouse with racking. There are offices with a trade counter and reception. Outside there is ample parking for customers. Part of the warehouse(2,000 square feet) is sub let to a timber treatment company which brings in monthly revenue. The lease expires in 2011 with an option to extend. Rent is £84,000 per annum with rates of £12,000 per annum.

The manufacturing shop is in a circa 15,000 square foot warehouse on one level with the lease running until 2011. Rent is £60,000 per annum with rates of £….

Other information

Support & training:

The owner would be happy to help out with a smooth transition of the business and help in anyway possible. He is prepared to help for a period of time to introduce the new owners to all of the major connections that the company deal with on a regular basis.

Reasons for selling:

This is an independently owned business and the owner is frustrated with level of credit that he can attract, restricting the stock levels and believes that a larger company with better buying power and investment will be able to grow the company to the next level. There is an option to retain the owner as an employee/manager of the business if the new owners require.