London Business Caterers Company For Sale

Business description

ESTABLISHED: For 16 years

LOCATION: Central London

TRADING AREA: Mainly Westminster.

CLIENT BASE: Industry associations, academic conferences commercial businesses and Government departments. Preferred supplier status at a number of conference facilities

EMPLOYEES: Full-time active director, 6 full-time employees plus freelance staff. All staff counter terrorism cleared (CTC)

THE OPPORTUNITY: Monday to Friday operation that has seen steady and managed growth under the current owner, which still has potential to develop sales within the existing customer base as well as increasing the marketing function to attract new clients. Online ordering from a wide range of menus and packages for customers to choose from, including breakfast buffets, seminar lunches, working lunches, finger buffets, hot and cold fork buffets, canapé receptions and sit-down dinner parties. 99% of orders are received via the website/online.

SALES HISTORY:

Revenue- £530,000
EBIT - £267,000
Gross Profit Margin - 53.3%
Gross Profit - £72,000*

*After Director’s costs of c.£25k.


PROPERTY: Ownership controlled by our client in a separate company. Available leasehold. Freehold available by separate negotiations.

UP TO 70% FINANCE AVAILABLE (subject to status).

REASON FOR SALE: Retirement.

Property information

Property:

Leasehold

Leasehold rent:

£27,000 per annum

Business Operation

Expansion potential:

The Managing Director has indicated that the recession has not had a dramatic effect on trade, particularly with government spending remaining similar. Additionally, the Company employees a large number of contract labourers, who are only paid for the time that they work. This makes the Company relatively recession proof.
In recent months the Company has undertaken larger events, providing up to 1600 covers in one day. Expanding the service range will increase the potential market and therefore in turn the potential turnover. The Company has a significant client base to whom they will be able to market larger events in future.
March is typically the Company’s best month with government budgets to be used up by April, but March 2009 was the best performing month in 16 years, with sales worth £72,866. The Company also completed the largest event in its history in March 2009 with 1400 covers, which was then bettered in May when the Company catered for 1600 covers in one day. November 2010 sales of £73,000 were achieved
An increase in large events catering also represents a significant area of potential growth. In addition to these events increasing the type of service offered and therefore making income more secure, due to their size, they are also particularly lucrative.

Competition / Market:

There are many other caterers that provide a similar quality of food, but customers come back due to the high quality of service provided by this catering company. While there is nothing to prevent customers moving between suppliers, the price and quality offered by our client's business is enough to retain customers event-after-event, year-after-year. Two of the major unique selling points, however, are a 5 star ‘scores on the doors’ rating from the Food Standards Agency and Counter Terrorism Clearance security cleared staff.

Reasons for selling:

Retirement

Trading hours:

Mainly Monday to Friday operation.

Other information

Financing available:

Up to 70% Finance available (subject to status)

Relocatable:

This business can be relocated.