Southern Home Counties International Language School For Sale

Business description

International language school working in the areas of general English, executive communications, academic English and military English language training
including significant freehold premises

Established over twenty years ago, this business is one of the UK’s market-leading, independently owned English language schools. Working in the areas of General English, Executive Communications and language training, Academic English and Military English, this business occupies excellent freehold premises which have been specifically adapted and designed for their purpose totaling 25,000 square feet in the heart of one of the most popular academic centres in the South.

This business is involved with an unusually wide range of language training types, nationalities and adult age groups. As well as being British Council accredited, this business is also a member of the International Association of Language Centres (IALC) – an elite and exclusive club of all the very best language training schools throughout the world. The business is also a member of EnglishUK, the national Association for the accredited ELT sector as well as BusinessEnglishUK, the association of specialist centres operating in the business and executive training field – a field in which this school is internationally recognized as being one of the market leaders. The school is also one of the few private testing centres for the International English Language Testing System (IELTS) Examination - this is the language qualification required by universities for all foreign students and by the British Medical Council (BMC) and the British Nursing Council (BNC) as the required language test for employment in the fields in the UK.

This is a very popular language school, increasingly so with students from the Far and Middle East and Latin America. Student numbers vary from around 230 General English and Executive English students in the quietest part of the year and up to 330 in the peak summer months. In the Executive and Business sector it is estimated that over 500 senior managers and civil servants from around 300 international companies and Governments will have come to this establishment for communications training during a typical financial year. Offering specialist training for international negotiations, meetings, professional presentations, congresses, cross-cultural communication and management and with a deserved reputation within the defence, aerospace, petroleum, telecommunications, engineering, banking, financial services and the automotive and related industrial sectors this business can name some of the largest international businesses including Siemens AG, Misubishi, Grupo Santander, Credit Suisse, Alcatel, Nomura and Renault to name just a few amongst its very loyal and prestigious Client base. Naturally, these specialist courses which are run on a 1-1 or very small group basis are also very high value courses.

This is a very successful business with a superb reputation in the marketplace, a good trading record and excellent growth and expansion prospects. With projected turnover for the 2008/9 financial year of approximately £2.6m generating a pre-tax net operating profit in the region of £400 to £430K and an asset base that includes a freehold property valued at between £1.8m and £2.2m, this represents an excellent acquisition opportunity for anyone looking to establish a foothold in this very buoyant and lucrative industry or for an existing operator to increase their penetration within the market sector.


Key strengths:

This business has been developed in to a major brand within its sector. It benefits from high levels of awareness and enjoys the respect and admiration of its peers in the industry. Within its markets, it has built an international reputation for excellence at all levels. In all areas of service provision and in several areas of language training (for example, military English language training and the Middle East) this business is widely acknowledged as a market leader.

This business can demonstrate the very highest credentials. Its accreditations are of the very highest calibre – accredited by the British Council, a member of the International Association of Language Centres (IALC) and a member of EnglishUK and BusinessEnglishUK. The business is also an International English Language Testing System (IELTS) Examination Testing Centre – a key attraction for all international students since this is used by British and Overseas universities as the criterion for entry to Higher Education as well as by the British Medical Council (BMC) and the British Nursing Council (BNC) as the required language test for employment in the field in the UK.

This business has also been inspected and appointed as a Licensed Sponsor with an “A” Rating for the very important new UKBA Tier 4 Student Visa requirements.

The business has also consistently received excellent reports from its British Council Inspections (the equivalent of OFSTED) with the latest report stating: ‘This large private language school offers courses in general and professional English for adults and for closed groups of adults. Points of excellence were noted in aspects of management, academic resources, academic management and welfare’. Not surprisingly the business can boast very healthy student numbers and longstanding relationships with a number of blue chip worldwide businesses in the Business and Executive sector.

Part of the management strategy for expansion has been to establish strong commercial and educational links with Higher Education institutions, particularly with its nearest university. As a result of this, the business benefits from a truly exceptional position of having direct acceptance onto degree programmes from a number of universities (i.e. without re-taking the IELTS Examination) for students completing its University Pre-Sessional courses, which generates direct business for the school but also significant additional business for both the academic preparation programmes and the pre-sessional courses - a key marketing point in the Middle and Far East, especially Thailand, Vietnam, China and Taiwan which are key markets for long-term students outside the peak Summer months. A further result of this partnership is participation (usually free of charge or for a nominal contribution) to education exhibitions and student recruitment fairs. Additionally, the school receives significant commission-free business from direct referrals from its local partner institution, having effectively the same status as a University Language Centre. Considerable extra business is also generated from relatives and friends of students at this partner university, and the business also runs a growing number of joint courses and programmes, including combined programmes offered to universities and companies abroad. The school is currently negotiating to take over a major part of the language provision for undergraduate and foundation-year students.

The business is clearly involved with a very wide range of training types and nationalities; this also means that its customer base and business activity are much less seasonal than most schools involved in English language training. The business is extremely busy every month of the year.

This business has an excellent complement of teaching staff. Being involved in a wide range of language training types, nationalities and adult age groups means this business is less vulnerable to international economic and political problems but perhaps more importantly makes it easier to keep a year-round quality teaching staff in place. Proof of this is that, in spite of the international recession, in the first 3 months of 2009, student numbers for this business are 50% up on the same period last year!

Some senior teachers with a marketing/business background working on a part teaching, part marketing/sales basis form a ve

Property information

Property:

Freehold

Location:

Ideally positioned in the heart of the local University campus, this business occupies approximately 18,000 square feet of a 25,000 square feet building across ground floor plus 8 floors including 46 classrooms, a language laboratory with 20 workstations, a computer room with 15 broadband-equipped student and teacher access computers, General student lounge, General student cafeteria and Executive Student lounge.

The building is very well equipped - wi-fi enabled throughout with an admin network of 18 computers, very well-equipped and furnished classrooms (including TV’s, videos, OHP’s, cassette players etc), 3 digital projectors and 14 laptops for teaching purposes.

The front ground floor of the building representing approximately 1,500 square feet is rented to a leading High Street café generating £16,500 in rents per year. In addition the roof is rented to three satellite companies generating a further £17,000 per annum in total.

The freehold of the building was acquired by the Owners of the business in 1997. In late 2007 and then in early 2008, 2 separate offers were received for the building each for around £2.85 million. An independent valuation by local specialists in late 2007 put the value of the building at between £2.75m and £3.25m. Reflecting recent market conditions, specialists value the building informally at between £1.8 and £2.2m although a new formal valuation will be conducted in the very near future.

In the future, should there be a requirement for converting all or part of the building into residential use, it has been confirmed that obtaining the necessary planning permission for this residential conversion would not be a problem.

Rates are around £53,000.00 per annum.

Other information

Competition / Market:

This business has built excellent relationships with its agency network with approximately 60% of its student number generated via this network with the remainder generated direct. Its accreditations and links with major organizations such as the British Council are no less important marketing tools giving students the confidence in the capabilities of the business to deliver results. Its location also provides high levels of ‘walk-in’business. The business also has a very well designed and informative web-site which is easy to navigate and performs very well in all of the major search engines for all appropriate search topics. By far the most cost effective form of marketing this business enjoys however is word of mouth recommendation, testimony to the esteem with which this business is held within its sector.

Support & training:

The Vendors will be available as appropriate after the sale to ensure a smooth transfer of the business to new Owners and would be available for an extended period (up to two years), subject to negotiation.

Reasons for selling:

Having worked in the business for over twenty years the current Owners feel the time is right to pass the business on to new Owners to build on the excellent foundations already laid and to realize the true value of their major assets, the business and the freehold.