AB241-Relocatable-£225,000-Manufacturing and Distribution E-commerce

Midlands/Relocatable, United Kingdom (Relocatable)

AB241-Relocatable-£225,000-Manufacturing and Distribution E-commerce

Asking Price:$290,990

Cash Flow:N/A

Gross Revenue:$434,546

EBITDA:N/A

FF&E:N/A

Inventory:N/A

Lease Rate:N/A /SF

Established:1982

AB241-Relocatable-£225,000-Manufacturing and Distribution E-commerce

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Business Description

UK Manufacturing and Distribution Business with E-commerce platforms
2 core revenue generators - babywear & soft play equipment
Ref. AB241
Location : Midlands/Relocatable
OIRO £225,000 (inc.Net Assets)
This reputable and firmly established independent family business has been successfully trading for some 35 years. It has evolved during this time into a multi-faceted UK manufacturing business with 2 distinct modes of operation that exist under the one Limited company. Both divisions operate in the mid to upper end of the market, such is the quality of manufacturing.

Baby Garments account for approximately 70% of current revenues. All garments are manufactured in the UK to a very high standard (historical customers include John Lewis and Mothercare). Range of garments include baby sleepsuits, bibs, bodysuits, cardigans t-shirts, gifts and accessories. The business has its own designs as well as offering customisation.

The company supplies to independent retailers, online retailers and promotional companies with some 30 regular customers. It also sells via its own interactive e-commerce websites, partner websites and via the Amazon and eBay platforms.

Soft Play Equipment & Inflatables makes up the other 30%. This is very much seasonal (January through to July typically). The company manufactures a comprehensive range of high quality bouncy castles and similar inflatable products, not to mention soft play mats and accessories that are all listed on its own e-commerce platform (that includes several websites as well as other leading platforms). All inflatables are manufactured to PIPA standards. The company enjoys healthy levels of repeat business from UK trade customers (typically companies who hire these inflatables out) who value the high quality manufacturing and short leads times this business provides.

Both customer bases are loyal. The business has a strong online presence and successfully sells through its own websites, partner websites and also across online portals Amazon and eBay –feedback levels are very impressive as it operates in the mid to upper end of the markets.

The company experiences very low return rates as a result of the quality of its merchandise, plus the state of the art machinery it has invested in.

This business is totally portable and scaleable. Its customer base, and supply chain for that matter, has grown and strengthened year-on-year. It has relatively low fixed costs and is simple to run. All sales generate impressive gross profit margins (64%), which, together with the fact they manufacture, ensures the business enjoys good levels of profitability.

The business model has been put in place. It is ripe for a new owner to utilise the superb and highly valuable positioning this company has developed, both online and in the market though its relationships with leading suppliers. The opportunity is there to either bolt on to an existing operation or for a new owner to scale up the business to maximise the many opportunities already at its disposal.

Detailed Information

Real Estate:
Leased
Building SF:
N/A
Lease Expiration:
N/A
Employees:
10
Facilities:
The business operates from leasehold premises that comprise of a 2 storey building of circa 7,500 square feet including the factory area, warehousing and offices as well as front yard. Premises are fully alarmed. Current rent is circa £24,000 p.a. We are advised a new lease would be made available as the vendor owns the property.
Competition:
The business is very much geared these days to online sales and marketing. As already mentioned the business’s own and its partners’ websites enjoys good organic rankings and feedback and also enjoys excellent exposure via Amazon and EBay. The company could do a lot more by utilising more SEO and embracing social media.
Growth & Expansion:
The business has been trading for some 35 years and in that time has generated impressive returns for the owner and his family. It has previously achieved significantly higher sales and profitability, but the owner by his own admission has not pushed the business on over recent years, due to impending retirement. There is huge scope to expand both sides of the business, particularly the clothing (the vendor advises it could easily quadruple sales with current infrastructure in place) as the product ranges and manufacturing capabilities are already there, not to mention the online presence that can be built upon. The infrastructure is in place for a new owner wishing to expand the business through new levels of energy and increased business acumen. There are many avenues to develop this. Integration into an existing e-commerce operation would also be straightforward.
Support & Training:
Vendor will provide a comprehensive handover to ensure a seamless transition and continuity of trading, this should be relatively straight forward based on the current business model and the fact he has experienced employees already in place.

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Reeta Verma

Business Listed By:
Andrew Hudson

Turner Butler

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