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Highly Profitable, Easy Operation, Asset-Backed Business, Yorkshire For Sale

Pickering, North Yorkshire, UK
Asking Price:
£1,700,000 Furniture / Fixtures included
Turnover:
£400,000
Net Profit:
£217,000

Beech Farm is a complex of eight holiday cottages and market-leading family-friendly facilities (indoor heated pool, purpose-built playroom, petting animals, playground) in a popular tourist location in North Yorkshire.

Financially, the business averages £217k EBITDA from a net turnover of £400k. The sale price includes the business operations and the £1.75m assets on the balance sheet (primarily the buildings). The business currently carries debt of circa £610k which can be migrated to purchaser if required (if purchaser takes on this debt, this amount would come off the asking price). If further funding is required, there is the possibility for a proportion of the sale price to be deferred. Future revenue looks exceptionally positive with forward bookings stronger than ever.

The business is a recipient of multiple awards (including seven consecutive TripAdvisor Travellers' Choice Awards), and has a desirable track record of high occupancy, repeat business and sustained profitability. The current vendors incorporated a limited company which bought the property in 2017. Since then, the site has undergone significant refurbishment and investment. All cottages have been fully renovated, the facilities all modernised while still retaining the traditional character, and a purpose-built playroom (suitable for other uses) constructed. The company's national reputation continues on an upwards trajectory and Beech Farm is now firmly established as one of the country's leading self catering businesses for families.

Beech Farm is currently owner-operated (approx 20-40 hours per week in total depending on time of year). An additional member of staff can manage the majority of day-to-day operations and there are a number of casual cleaning staff who look after the changeovers. New owners could easily step back and run on a more hands-off basis, or reduce costs by taking on more work themselves.

Priced very realistically for a quick sale.

Property Information

Property:

Freehold

Living Accommodation:

Eight cottages, ranging from five bedrooms to one bedroom. 23 bedrooms in total sleeping up to 45 guests (plus infants). All but the two smallest cottages have full residential rights and could be used as owners'/managers' accommodation. Possibility for individual cottages to be separated from the business for other purposes.

Location:

Prime tourist location. Situated in a small rural village (pub within walking distance), just two miles outside the popular market town of Pickering. Conveniently located for coast, attractive towns and cities (eg York, Whitby), national parks and areas of outstanding natural beauty, country houses, children's activities.

Premises Details:

Converted from a farm, a complex of eight holiday cottages and anciliary buildings (indoor swimming pool, purpose-built playroom, reception office, utility, laundry, store rooms etc). Decorated, furnished and maintained to an exceptional standard, the business is genuinely turnkey.

Business Operation

Expansion Potential:

Possible to grow revenue through events, group-targeted holidays (eg yoga breaks), and more marketing in quieter months. There is another holiday cottage business next door (owned by different people) which could be bought and incorporated into this business, achieving higher occupancy and rental rates because of using the superior facilities.

Competition / Market:

Whilst North Yorkshire is a hugely popular tourist destination, Beech Farm sits apart from the competition with its family-centred facilities. The only comparable complexes nationally are over 200 miles away. A high proportion of guests are currently repeat visitors or personal recommendations. This results in an exceptionally low cost per customer acquisition. 99% of bookings are direct through the website and therefore booking/commission costs are minimal. Beech Farm has established a core niche market of families with young children (often multi-generational) within the self catering sector meaning it is more resilient to seasonal and economic fluctuations.

Reasons for selling:

New challenge sought

Trading hours:

Currently open year-round with some dates closed off for periods in off season

Employees:
3 (plus casual staff)
Years established:
8

Other Information

Support & training:

Full handover with vendors negotiable depending on purchaser's requirements

Financing available:

Current owners have a £600,000 commercial mortgage on the property which could be migrated across to the purchasers if required.

Furniture / Fixtures value:
£30,000 - included in the asking price
Website:
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Home based:
This business can be run from home