Asking Price: £1.6m plus SAV
Location: South East
Turnover: c£3.035m
GP: c£1.4m
Two-year Average Profit: £417,000
SAV: c£290,000
Introduction:
The opportunity exists to acquire, by way of a share purchase, all of the issued capital in this online plumbing supply merchant (“the business”).
The business sells a variety of construction plastics, including plastic pipes, fittings, and parts, to clients ranging from private individuals who are interested in building their own homes or doing their own renovations to large building contractors who incorporate these plastics into their projects. Since its establishment a little over a decade ago, the business has built, on the one hand, a robust, highly reliable supply chain that includes some of the UK’s leading manufacturers of construction plastics and, on the other hand, a substantial base of satisfied, loyal customers. These strong operations allowed the business to open a tremendously successful website and online store in 2009 that has taken off, expanding the business’s reach across the nation and helping it achieve over £3 million in turnover in the fiscal year ending February 2023.
The Business:
The business is a “household” name in the construction sector in the Southeast and throughout the country. Behind the aforementioned website is a long-standing physical location of 3,000 sq. ft. that includes a busy trade counter. The business was founded in 2009 by the current owners. It has become one of the top sellers of construction plastics in the region and the country and is now perfectly positioned for further expansion, including the option to move into the traditional builder’s merchant space.
Reasons for Sale:
The vendors have taken the business as far as they can and are seeking new challenges, although they are prepared to continue to work for the buyer if required.
Key Considerations:
Top-tier seller of construction plastics.
Excellent reputation and trading history.
Well-known brand associated with high-quality products and services.
Relied upon by large contractors, including blue chips.
A top-ranked e-commerce website.
Outstanding SEO that drives considerable traffic to the site.
Strong relationships with leading UK manufacturers.
Streamlined operations with a deep and trusted supply chain.
Large, well-fitted, and well-kept premises near a bustling port.
Substantial, growing revenues and healthy profit margins.
Numerous expansion opportunities exist, including adding/converting to a builder’s merchant model.
Summary Results:
y/e £ 000s
2023
2022
Turnover
3,035
3,967
Gross Profit
1,415
1,631
Net Profit 370 465
Net Assets
The Stock is worth c£290,000. The business is being sold with no cash and no debt. The final sale price will be adjusted £ for £ for any increase in the final NAV over and above the £290,000 stock value. The investments on the balance sheet will be removed at or prior to completion.
