The Hardware Stores” Diy Retail Chain 2 Freehold Stores - Brechin And Montrose for Sale
Freehold : £ 995,000
The business operates from 2 prime retail sites in the town. Both sites are freehold with a combined freehold value circa £360,000.
The Montrose property is set over two floors, extending to circa 2000 square feet.
The Brechin property is a detached unit set over two floors, extending to circa 5200 square feet.
Both properties benefit from full CCTV systems, along with computerised EPOS till system.
The Hardware Stores supply goods and services to the trade and DIY customers, selling household, electrical, decorating, gardening products, tools, fixings, fuel, engraving (https://www.ferburnengraving.co.uk) and key cutting.
The business is part of a large buying group, giving it all the benefits of a large multinational, and allowing it to offer a wide range of products at competitive prices to its customers. Currently it offers well in excess of 20,000 product lines from all the market leading companies.
The Hardware Stores has over 250 active trade customers as well as a large loyal retail following from the general public who support local businesses in both towns.
The current owners, a husband and wife team, are selling due to their wish to retire. However there is an excellent team of staff in place that will ensure a smooth and seamless transition of ownership. Staff include managers and assistant managers who run the business on a day to day basis, so much so that the vendors only work part time in the business, and this is through choice.
The business has enjoyed impressive sales and profitability over the years and is being presented as an excellent opportunity for a prospective buyer to capitalise on their hard work and grow the business further. It has a strong asset base (including the two freehold sites) and generates excellent returns.
With combined annual turnover consistently in excess of £900,000 that generates typical EBITDA of circa £200,000 p.a. (pre director drawings) and a net asset position of circa £590,000 this is a very successful and profitable business with a sterling reputation.
The business has its own bespoke database. Sage, EPOS/stock control software so that it can carry out its duties efficiently.
• Strong track record of income and profitability
• Local independent business providing important services
• Over 20,000 different products purchased from over 70 different suppliers
• Excellent range of products and services offered
• Strong levels of marketing activity already in place, with online advertising, website and its own offers newsletter
• Circa 250 active trade accounts plus retail
Customers are always offered helpful and friendly service from the experienced staff, resulting in a high percentage of repeat business. Its excellent locations mean this very successful business features a constantly growing base of satisfied clientele and accounts.
There is constant high demand for its products and accessories, leading to a consistently strong financial performance, making this Company an exceptional investment opportunity.
New housing developments proposed in the Brechin and Montrose areas, expanded potential customer base
• Opportunity to keep up to date with new product launches
• Huge potential for Engraving service using social media and website https://www.ferburnengraving.co.uk/
• Potential for the business to grow by increasing their social media reach
• Deliveries (especially for trade accounts)
• Ongoing development of ‘Fair and Square’ newsletter
• Potential to grow using the local council’s procurement system
• The business’ range of products facilitate the opportunity for developing and introducing new products with little expense as a trial and error products
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.
The business consistently achieves turnover of circa £900,000+ per annum.
Resultant gross profits circa £300,000 per annum.
Typically Adjusted d EBITDA circa £200,000 per annum (pre-director drawings)
Net Assets circa £590,000 (comprising freehold properties circa £360,000 and high quality stock circa £230,000).
Equally impressive figures have been posted over previous years as the business enjoys high levels of repeat business from its loyal customer base, benefitting from the fact it serves both trade and retail clients.
There is huge potential to develop this business further. The vendor is pretty much reactive in their approach to business these days and there is huge scope to maximise additional opportunities that exist within its current customer base and beyond.
Because it is an exempted industry the business has continued to operate during the coronavirus epidemic and has seen its sales increase £144,347 in total compared to corresponding months last year.
Asking Price is for 100% of the Issued Share Capital in the Limited company based on Net Assets being £590,000 at time of sale. Should the net asset figure be different from this the price will be adjusted up/down accordingly on a £ for £ basis
||7 days a week
||The vendors (husband and wife team) both work part time in the business through choice and operate from the Brechin store (circa 12 hours a week each). The business employs some 8 staff in total and this includes a Manager and Assistant Manager at the Montrose site and an Assistant Manager at Brechin. Staff are a real asset of the business and the both sites can and do operate on a day to day basis without the owners input.
The business is relatively simple to run as the owner has invested in the back-office systems. Staffs are fully conversant with the systems (EPOS) so they can multi-task and complete a variety of tasks.