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Sun, Sep 27 2020 01:37:23 AM  |  /

The Hardware Stores” DIY Retail Chain 2 Freehold Stores - Brechin and Montrose

Business Id:000400     |    Reference: AI043
Freehold Price:
£800,000.00
Business Description

The Hardware Stores” DIY Retail Chain 2 Freehold Stores - Brechin and Montrose
Ref. AI043
Location : Brechin & Montrose, Scotland
Asking Price : £800,000 Inc. Net Assets
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.

Financial Information

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. 

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.

 
Business Information
Turnover:£900,000.00 Annually
Property Status:   Freehold
Is this business relocatable: No
Business Sector: DIY and Hardware Stores
Statistic Information
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Business Profile
Equipment: The business has its own bespoke database. Sage, EPOS/stock control software so that it can carry out its duties efficiently.
Key strengths: • 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.
Key Opportunities: 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
Financial performance: na
Asking Price: Asking Price: 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 £ b
Advertising and Marketing: The business does limited self-promotion and marketing, preferring to rely on repeat business and referrals to generate sales. However it does have catalogues/promotional material supplied by its supplies as well as its own newsletter and limited social media presence. There is huge scope to increase its exposure should a new owner so require not least with the introduction of a website.
Growth and Expansion: The market for workwear is growing. It is becoming more and more important for companies and their staff to portray the correct corporate image. This market is also supported through legislation in the way of health and safety and this presents ongoing opportunities to the business in the short, medium and long term, such is its wide and varied client base.
Premises: na
Business Hours: 7 days a week
Employees: 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 Mon
Support and Training: The current owner would be happy to provide full training and support at handover. This should be a relatively simple transistion as the busines has excellent staff and systems in place.

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