Manufacturer And Installer Of Bespoke Bedroom Furniture For Sale

Business description

Operated by the current Owners for approximately seven years, this is one of the leading manufacturers of bespoke bedrooms in the south east of England. Based in a very well suited production facility in Surrey, this business makes traditional and contemporary fitted bedroom furniture gaining the most effective use of space in a bedroom to exactly match customer requirements. As well as bedroom furniture, a small proportion of turnover arises from the building of bespoke kitchens for kitchen retailers and other trade operators as well as one off furniture items for other parts of the home.

This business adopts a totally flexible approach to projects. It plans, designs, manufactures and installs a bespoke fitted bedroom that looks stylish and is made to work for any size of bedroom accommodating the awkward shapes, difficult corners or features in any room, such as sloping ceilings – which cannot be achieved using standard off-the-shelf wardrobes and other furniture items.

Working right across Surrey, south London, the Sussex coast and into Kent – but mainly within a thirty minute drive of its manufacturing base, this business offers only the very best in craftsmanship and specification, specialising only in the full cabinet method of construction. All drawers are built of a strong construction with long lasting smooth runners and colour matched bases with drawer boxes fitted with soft closing mechanisms. Customers can choose from a huge range of colours and finishes – all handcrafted from this business’s highly skilled and experienced joiners and cabinet-makers in its own factory. The quality of installation is no less impressive – fitted by the craftsmen that make the furniture ensuring the highest quality of service possible. Average order value is approximately £3,000 – with some projects as high as £12,000.

Without expensive showrooms and with the end product manufactured in its own factory and installed by in-house staff, although produced to a very high standard, the products of this business are very competitive when compared with what is available generally in the marketplace and in particular anything of equivalent quality. As a result the business enjoys a steady stream of orders – from new customers and existing customers returning to fit an additional room.

With turnover of approximately £180,000 for the financial year ending March 2009, generating gross margins of £108,000 this represents an excellent opportunity to acquire a leading manufacturer of bespoke bedroom furniture. As such it should appeal to a bedroom retailer looking to control their supply chain, an existing manufacturer looking for additional capacity or geographical expansion or a new entrant to the industry seeking to establish a firm foothold in the sector.

Key strengths:

This is a very well established business renowned for its high quality of craftsmanship and customer service. It offers a bespoke service – manufacturing products that fit rather than an ‘off the shelf’ solution which may not maximise the space available.

It has developed a very streamlined production process – planned, to create a logical workflow through its premises with all aspects of production as systemised as possible. The business has all the necessary plant and equipment normally associated with a business operating in this sector - having invested heavily in its production capacity over the past seven years.

The business offers a free survey, design, planning and estimating service and prides itself on building relationships with Clients involving them at every stage of the project to ensure high levels of customer satisfaction – even to the extent of sending a bunch of flowers to each and every client at the end of every project.

Working from well suited yet low overhead premises and with control of all aspects of a project – from design, planning, manufacture and installation, the business offers a quality product that maximises the space available and meets the customer’s exact lifestyle requirements – all at a very competitive price.

Key opportunities:

With an enviable reputation and renowned for always meeting if not exceeding Client expectations there is an outstanding opportunity to build on the existing products and customer base of this company. With strong demand, combined with a capacity to increase turnover, a new owner contributing fresh ideas, motivation and enthusiasm will have every advantage of building on an excellent platform.

Having established a product which is of a higher quality yet is extremely competitive with any comparable bespoke offering in the current marketplace – the current Owners are currently working on the possibility of introducing a product range which matches the quality offered by its mainstream competitors but at a lower price. Likely to appeal to a younger target audience, this would enable the business to capture a wider share of the marketplace and offer the possibility of moving their current range into a price bracket commensurate with the quality of product and service offered.

Whilst this would undoubtedly have a significant impact on turnover and profitability - with its two current Owners working in the business no more than a day a week each it could be argued that the introduction of dedicated full time management would have an even greater effect on the business performance

Financial information:

All financial discussions will take place directly between the vendors and all interested parties under the auspices of Turner Butler.

Turnover and margins have been reasonably consistent for a number of years.

For the financial year ending March 2009 turnover was almost £180,000, generating gross profits of £108,000.

The Asking Price of £110,000 is for a sale of the shares in the Limited company based on an adjusted Balance Sheet value of £70,000.

Property information

Property:

Leasehold

Lease terms:

Rent is approximately £6,000 per annum to include Electricity and Water with Rates of £6,000 per annum.

Location:

The business operates from very well suited, production unit – a converted farm building of mainly brick construction. Situated on a former smallholding, housing several other businesses, there is ample parking and access for collections and deliveries. The site offers easy access to the M25 and M23 motorways.

Secured on a ‘Licence to occupy’ arrangement the premises are approximately 243 sq metres in all including an on-site showroom, offices and workshop.

Rent is approximately £6,000 per annum to include Electricity and Water with Rates of £6,000 per annum.

Other information

Competition / Market:

Well established and enjoying high levels of awareness and repeat business from previous customers the business invests carefully in marketing and advertising. The business has a very attractive Corporate brochure and features in all of the relevant editions of the local Yellow Pages. The business also has a very well designed and informative website which performs very well in all the major search engines for all appropriate search terms, however by far the most effective form of marketing for this business is the excellent referrals it receives from existing customers delighted with the quality of product and high levels of customer service they have received.

Support & training:

The current Owners will provide full business familiarisation, training and handover to ensure a smooth transfer of the business to new Owners.

Reasons for selling:

The Owners wish to concentrate on other business interests and now wish to pass this business on to new Owners to build on then excellent foundations already laid.