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The vendor of this business has many many years experience in this market and has a solid reputation for providing a competitive and reliable cylinder gas service to clients within several market sectors. This company supplies and distributes bottled gas to commercial customers in and around the Greater Manchester area. The business supplies a varied array of clients and has some 220 regular retail customers including public houses, restaurants, bars, nightclubs, balloon shops and florists (helium-only a small percentage). The business provides a quick and speedy response to customers and provides a safe and reliable delivery service. This is because the business model is very straight forward and cost effective.
The business holds a very large stock of gas bottles that are well maintained, regularly tested and regulated. The vendor has continued to invest in new cylinders and vehicles to grow the business (we are advised circa £88,000 last year alone on vehicles and cylinders).
• Approx 3,000 Gas Cylinders varying from 10 Litre to 50 Litre sizes
• New Delivery Vehicle (7.5 Tonne)
• Forklift Truck
We are advised by the vendor that the total value of plant and equipment is circa £200,000. All equipment is included within the sale price
The business has built up a superb reputation in the market it serves for providing good quality gas and a reliable delivery service. This is demonstrated by the fact the business enjoys good levels of customer retention and new referrals on a weekly basis.
This business has a good level of cylinder stock to increase capacity if need be. It has good supply relationships and a large loyal and growing client base. The profit margins available to a new owner are significant. Typical mark up for bottled gas can be very high, making this a very lucrative business. This together with the excellent reputation, low overheads and levels of service sets this business apart. The business is well positioned for future growth as all the necessary foundations are already in place.
The business model is truly scaleable. The business has spare capacity in terms of cylinders. There is no reason why the business could not expand its geographical spread, such is the demand for products. There is also the opportunity to supply complimentary products to the captive market the company serves. This could include janitorial and cleaning products, not to mention bottled wines and beers.The company currently undertakes no marketing activity. Further work in this area could increase exposure and drive up sales.
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.
We are advised that sales for last financial year ending 31 March 2017 were circa £150,000 p.a. Very Impressive Gross Profits margins.EBITDA before the owner’s drawings are expected to be c£45.000.
We are advised the Net Assets of the company (cylinders and vehicles) are circa £200,000. These are included within the asking price. This business represents an ideal investment opportunity with huge scope for further development.
The business is run from leasehold premises. Rent is circa £350 per month. The business could easily be relocated if need be.
To date the business has not felt the need to carry out traditional advertising as it benefits greatly from the most effective forms of marketing available, word of mouth recommendations and referrals. There is an opportunity for a new owner to develop this side with the introduction of a company website, as well as undertaking some marketing and advertising activity.
The vendor is planning his exit strategy.
Monday – Friday: 0900-1700
There is no reason why a new owner could not increase opening hours if so required.
The current owner would be happy to provide full training and support at handover to ensure continuity of trading. This should be relatively stright forward as the business model is simple.
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