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Natural Stone Supply Company Sourcing/Processing/Distribution For Sale

Aberdeenshire, UK
Asking Price:
Net Profit:
Available on request

This company specialises in supplying the highest quality natural stone products, offering a complete turnkey solution to its customers from sourcing, through to processing, design and final distribution and delivery. The business can source a huge range of stone and stone related products (tiles etc.) whether they are for interiors, masonry, paving or landscapes and has a “can do” attitude when it comes to meeting customer requirements.

This hugely successful family business was established well over 20 years ago and has experienced impressive growth and profitability since inception. The company is now one of the leading suppliers of natural stone products in the UK and has built a very desirable customer base throughout the UK spanning many different market sectors. Customers include building trades and construction companies, civil engineering companies, garden and landscapers, groundwork companies as well as distributors to these markets, not to mention end users and some domestic retail clients.

The business has some 500+ active customers spread throughout the UK, in addition to a much larger database of less regular customers, the majority of whom are commercial entities operating in the sectors already mentioned above.

The expertise within the company allows it to provide stone products for a large range of requirements. The business has invested in infrastructure to process, design and manage each requirement from start to finish meeting specific customer requirements. A professionally designed website allows potential clients to view samples and receive expert advice on suitability of products etc.

This is a very well managed business, with all the systems and processes set up to meet significant demand from its wide ranging customer base. With turnover in excess of circa £1 Million for the current year and gross profit margins above 50% (based on management accounts for the first 6 months of 2019) this is a highly profitable business model. As such it should appeal to any existing natural stone company looking to acquire a leading competitor, a company serving complementary markets or any buyer looking for a very healthy return on investment through acquisition.

Customer Service:
Central to the company success is its total commitment to quality of product and service, which is focused to a great extent on surpassing customer expectations at every stage of the process. Delivering above and beyond clients’ expectations since 2006 has required a huge amount of hard work and dedication by the family behind the operation, this has paid off in terms of ongoing repeat business and a large amount of custom gained through word of mouth.

As part of its commitment to customer service the business utilises CRM and back office systems to ensure they manage the process effectively.

A name clients can trust is of the utmost importance in an industry where the business is relied upon to provide a bespoke service. The business’s employees are experts within their field and approach each project as a unique challenge.Attention to detail and a personal service have been consistent factors in putting the minds of customers at ease.

Key Opportunities:
There is considerable potential for new owners to take advantage of the excellent supplier relationships the company enjoys and with the superior products it is able to offer clients. The main forward focus of the business is to increase the range and type of both exterior and interior products to complement the existing product range.

Increasing the number of projects undertaken through a greater focus on sales and marketing could also result in dramatically increased revenue. The vendors, by their own admission, are more reactive these days rather than proactive, as the business benefits from having built a very loyal customer base. It could greatly benefit from utilising external sales agents to further promote sales should a new owner so wish.

Key Strengths:
Excellent industry relationships have been a key factor in the ongoing success of the company. Suppliers have been a consistent source of high quality materials that have bolstered the company’s reputation as the purveyor of a high-end service in all aspects of the operation. The standard of materials available has resulted in a considerable amount of business supplying those within the trade. This side of the business generates a large amount of repeat custom and has provided added security by increasing the remit of the company’s operations.

Other strengths of the business include:

• Large stock yard
• Extensive range
• Product knowledge
• Prompt despatch
• UK-wide coverage

Where this business differentiates itself from the competition and what is the cornerstone to its success is its excellent trade relationships and technical knowledge, coupled with a diverse range of products and customer types. The business has tried and trusted supply lines. This enables the business to be very competitive and to offer excellent value for money, whilst still maintaining healthy margins. With lower unit costs, the business is able to maintain large stocks resulting in a fast turnaround and high levels of customer service. As a result the business enjoys an excellent reputation for competitive prices, customer service and as a result benefits from a constant stream of word of mouth recommendations.

This business operates from very well suited premises with a well-equipped workshop, ideally located, close to major roads network. The premises are readily accessible on a main trunk road to customers wishing to visit the premises to view the samples etc.

A major asset of the business is its very well designed and informative website which performs very well in all the major search engines for all appropriate searches. Further work here could continue to feed the business.

Financial Information:
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.

Note: This is a goodwill and asset sale.

Turnover for current year circa £1,100,000 per annum
Gross Profits circa £560,000
Adjusted EBITDA (pre director drawings) circa £420,000 p.a.
Net Asset value circa £410,000 (inc. stock circa £380,000, Fixed Assets circa 30,000)

Property Information

Premises Details:

The business currently operates from ideal premises– circa 3450 sq. feet interior space with 2 acres hard standing yard area. The business could be relocated if required but has an established clientele in the region as well as UK wide. The vendor would also be happy to sell the premises should a new owner so require or set up a lease agreement, subject to negotiation. Freehold value circa £150,000.

Please note the premises are Not included in the current asking price.

Business Operation

Competition / Market:

The business undertakes a variety of marketing activities and promotion including:

Direct Mail
Leaflet dropping

It also has a suite of comprehensive brochures which are of great use to its customers.

The large database of account clients has been built up largely by word of mouth as a result of the business’s excellent reputation. Although continued growth is achievable by following this model of expansion, there is a definite opportunity to rapidly increase turnover and profits by investing in a more aggressive marketing strategy. This would serve to maximise the returns from the acquisition of an established, trusted brand name.

Reasons for selling:

The current owners have achieved what they set out to with the business and have decided to pursue other business opportunities.

Trading hours:

Monday – Friday 07.00 am - 17.00 pm

Years established:

Other Information

Support & training:

The current owners will provide all necessary training and handover ensuring a smooth transfer of the business to the new owners.

This business can be relocated.

Contact Information

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