Manufacturer Of Registration And License Plates For Vintage For Sale

Business description

Manufacturer of Registration and License Plates for Vintage and Classic Motor Cars and Motor Bikes

This family business, established in 1939, and sustained by the current Owner’s interest and enthusiasm for classic and vintage cars specialises in the manufacture and supply of registration and licence plates for vintage and classic motor cars and motor bikes.

Having stayed with the classic and vintage era whilst virtually all other suppliers of registration and licence plates have switched to modern lettering, this business has little competition in the UK and consequently attracts customers from throughout the country and indeed from all over the world. Awareness of this business is an absolute must for anyone owning a classic or vintage car or motor bike – being able as it is to provide plates with the correct specification, details and dimensions for cars and motor bikes from when the very first regulations were laid down in the 1904 Road Traffic Act right through to the 1970’s.

This business is operated solely by the current Owner in very well-suited shared premises and as a result will need to be re-located. Customers can access the range of product available via this business’s very well designed, informative and easy to navigate website and with a proportion of transactions completed by fax or phone – with no ‘walk in traffic’ the business is easily re-locatable.

The business carries an excellent stock of virtually all of the components that could be in demand at any one time – and has the ability to manufacture anything it doesn’t have using its own tooling. Consequently this business is able to despatch orders within just a few days of them being received using the postal network. As a result of its efficient and professional service – the business is readily available with guidance and advice to ensure the correct plate is ordered, levels of customer satisfaction are very high. With very few if any, competitive outlets available, customer retention and repeat business particularly amongst professional restorers is also high. Not surprisingly therefore this business has established itself as a leading supplier worldwide in its niche market.

Operated on a less than full time basis, this business has performed consistently over the past few years. With turnover for the financial year ending October 2009 set to reach £80,000 with gross margins of approximately 80%, this represents a rare opportunity to acquire a very well established, easy to run business with an extensive, loyal Client base. Operating in a high margin niche sector of the motoring industry with significant growth and expansion opportunities this opportunity should appeal to any current plate manufacturer looking to extend their presence into this sector or a classic and vintage car enthusiast looking to develop a business out of their chosen interest.

Product range:

This business is able to supply all types of vintage plates from 1904 to the 1970’s including hand painted, solid cast aluminium and die pressed lettering with 3 1/12th size characters (pre 1964) and 3 1/8th lettering on polished aluminium for both cars and motor bikes.

The business is also a stockist of ‘Ace’ and Gothic polished metal digits as well as reversed (hand engraved) Mirror - line perspex plates applicable to Rolls Royce, Bentley and Rover models.

Key strengths:

Well established – operating for over 70 years, this business is based upon a wealth of experience and knowledge of vintage and classic cars and motor bikes. Easy to run, the business is built around old fashioned values of customer service and craftsmanship – advice and assistance is always available to guide purchasers to the correct design and specification for their required plate for their vehicle and the business uses only top quality materials consistent with the correct age of the vehicles on which the plates are to be placed.

From this base, this business has established itself as a leading supplier in its niche sector with little or no competition especially in certain areas of the market – this business is the only one able to supply die cast aluminium digits, for example.
With an increasing number of classic and vintage car enthusiasts and the ownership of a classic or vintage car the dream of a huge number of people with large disposable incomes this business has an on-going market with excellent growth potential. And as today’s classics become fewer and further between Owners become less price sensitive, simply being pleased and to some extent amazed that parts are available at all - affording the opportunity for profit margins, suppliers of modern plates could only dream of.

The current Owner’s knowledge of classic and vintage car registration and licence plates, coupled with this business’s almost monopolistic position and its successful track record of customer service over a period of 70 years has enabled this business to establish a large, loyal customer base of enthusiasts and professional restorers. Enthusiasts by their very nature are always keen to discuss their hobbies. Consequently awareness of this business has been built and will continue to be built by word of mouth recommendation – supported by an excellent website which performs very well in all major search engines - reducing the requirement to spend on expensive advertising and marketing. Excellent customer service, product knowledge and the supply of quality products ensure that first time customers return time and time again.

Low overheads ensure this business is extremely profitable with gross margins in excess of 40%. With no real need for retail premises this business is easily re-locatable and could be readily absorbed into an existing operation.

Key opportunities:

There is an outstanding opportunity to build on the existing business levels and customer base of this company. With its excellent reputation, a new Owner contributing fresh ideas, drive, enthusiasm and investment will have every advantage of building on an excellent platform.

The cornerstone to the success of this business has been its ability to service the requirements of the owners and restorers of classic and vintage motor cars and motor bikes. Currently operating on a less than full time basis – and with an estimated 2 – 3 million vehicles pre-dating 1973 still ‘on the road’, there is no doubt that considerable expansion opportunities exist for this business.

A very effective marketing tool in the past has been classic and vintage motor shows and exhibitions. Returning to these shows would enable this business to significantly increase turnover and profitability.

Technology:

The business has invested substantially over the years in plant, equipment and tooling which enables it to meet the demands of its customers with vehicles built in the period in which it operates. All licence and registration plates meet the necessary DVLA requirements.

A full inventory of plant and equipment is available subject to the completion of the usual confidentiality formalities.

Customers:

As one of the very few manufacturers of its kind in the UK this business has built up an enviable, loyal customer base of private individuals and professional restorers of classic and vintage cars. It is estimated that approximately 95% of sales are retail with payment upfront affording excellent cash flow.

Financial Information:

All financial discussions will take place directly between the vendor and all interested parties.

Projected turnover for the financial year ending October 2009 is approximately £80,000 generating gross margins of approximately 80% and a pre-tax net operating profit of approximately £35,000.

The Asking Price of £175,000 is based on a sale of the assets and goodwill in the business with the plant and equipment conservatively valued in the region of £50,000 - £60,000 and stock of approximately £30,000.

Property information

Property:

Leasehold

Location:

The business operates from premises shared with other family business interests. As such the business will need to be re-located.

It is estimated that a unit of approximately 1,000 square feet would be sufficient to house the full range of plant and equipment and stock required to run the business efficiently. With all of the trade done ‘remotely’, with no passing traffic the business can be re-located without any impact on trade whatsoever.

Other information

Competition / Market:

This business trades extensively on the awareness it has built up through over 70 years of successful operation further boosted by its past appearances at trade shows, classic car motor shows and meets. This significant level of awareness has been further reinforced in the past with occasional small display ads in the relevant trade directories and its own marketing materials including a low cost price price list/order form. Aimed at a very large, but tight knit community of enthusiasts which regularly meets to discuss their passion and having been established in the sector for such a long period of time, this business benefits greatly from the most cost effective advertising of all, word of mouth recommendation which drives traffic to this business’s well designed, informative and easy to navigate website which also performs very well in all the major search engines for all appropriate search topics.

Support & training:

The owner is happy to assist in training and handover as required to ensure a smooth transfer of the business to new Owners.

Reasons for selling:

This is a genuine retirement sale.