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Fri, Jan 27 2023 03:57:53 AM  |  /

Very Profitable Independent Bakery 2x Busy High Street Locations

Business Id:000805     |    Reference: AF187
Price:
£190,000.00
Business Description

Business Profile

This long established specialist bakery has been successfully trading for more than 19 years and is now regarded as a local favourite among its established and ever growing number of customers. Using fine quality ingredients and reliable production methods, the business maintains quality of product and profitability consistently year in, year out; its reputation is well earned.

Operating from 2x high street premises the business is able to manufacture its products efficiently and profitably. The units currently have up to date preparation facilities, together with mixing and storage areas, and there is scope to add additional product lines within the current sites, should a new owner wish.

In what is a highly competitive retail environment, this business has positioned itself competitively within its niche and because of this has experienced consistent sales and has performed very impressively throughout its existence, even during the recent covid period. They have never compromised their standards and have always maintained their reputation for quality, reliability and honesty.

The bakery is managed by the two baker/vendors and supported by experienced bakers & shopfront staff who are committed to providing their customers with a friendly and efficient service and the finest quality products.

The business has all of the necessary requirements, standards and accreditations in place with efficient procedures for quality control, hygiene, ingredient testing, production, and retail sale.

The bakery produces a wide range of bread, pastries and celebration cakes for all occasions as well as retailing coffee & tea.

Equipment:

The bakery is fully equipped to carry out its duties as you would expect from such a key supplier. Full production plant details can be made available to interested parties and this includes mixing machines, fully racked out and palletised dry store areas, clean areas, and IT equipped office area.

Customer Service:

The customer service ethos of this bakery is to supply the finest quality products on-time and on a consistent basis in order to satisfy and fulfil their customer expectations.

The company approach to customer service is evident by its levels of customer retention and repeat business, year on year.

Key Strengths:

  • Locations
  • Loyal customers
  • Limited competition
  • Facilities
  • Low overheads
  • Scalable

Opportunities/Growth and Expansion:

there are many new opportunities that could increase revenues and profitability still further including the development of specialist online retail and delivery.

The greatest opportunity however is to maintain the winning formula that aleready exists within the business.

Advertising and Marketing:

The business has never undertaken any marketing initiatives. It has relied on customer retention to generate sales. The business could certainly benefit from an online presence.

Employees:

The vendors operate as bakers and co-Managing Directors and the business also employs the following members of staff:

3x Bakers

9x Shop staff

All staff are knowledgeable and can multi-task if need be. Staff have very good relationships with the customers.

Premises:

The premises are leasehold and ideally situated on a very busy and popular high street.

Annual rent for shop 1 is circa £13,000.  Rates are circa £5,000 p.a. The building is one of a parade of traditional properties with covered pavement and in an excellent state of repair.

Annual rent for shop 2 is £8,500.

Each premises comprises a production area, stores, dispatch, locker rooms, canteen etc. with small offices.

To the side there is a delivery & storage area with excellent access.

Business Hours:

Currently Monday to Friday 06:30 – 15:00 and Saturday 07:30 – 14:30.

There is no reason why a new owner could not extend production/business hours.

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.

2021 Turnover circa £550,000 p.a.

Gross Profits circa £383,000 p.a.

Adjusted EBITDA (pre director drawings) circa £144,000 p.a.

Net Assets circa £93,000

Reason for Sale:

The business is offered to market due to pending retirement and ill health. It is ideally placed for continued success moving forward.

Support and Training:

The vendors will provide a comprehensive hand over program to facilitate a smooth transfer and continued success of the business. This should be a relatively simple process as the business has excellent management, good internal procedures and a structured workforce in place.

Asking Price:

Offers in the region of £190,000 plus net assets are invited for 100% of all the issued capital of the company. There will be a £ for £ adjustment to the final sale price to reflect any upward/downward movement away from the target net asset price.

 
Business Information
Turnover:£550,000.00 Annually
Is this business relocatable: No
Business Sector: Cake Shops, Patisseries, Tea Rooms, Bakeries
Statistic Information
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Business Profile
Equipment: The bakery is fully equipped to carry out its duties as you would expect from such a key supplier. Full production plant details can be made available to interested parties and this includes mixing machines, fully racked out and palletised dry store areas, clean areas, and IT equipped office area.
Key strengths: na
Key Opportunities: na
Financial performance: 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. 2021 Turnover circa £550,000 p.a. Gross Profits circa £383,000 p.a. Adjusted EBITDA (pre director drawings) circa £144,000 p.a. Net Assets circa £93,000
Asking Price: 190000
Advertising and Marketing: na
Growth and Expansion: na
Premises: The premises are leasehold and ideally situated on a very busy and popular high street. Annual rent for shop 1 is circa £13,000. Rates are circa £5,000 p.a. The building is one of a parade of traditional properties with covered pavement and in an excellent state of repair. Annual rent for shop 2 is £8,500.
Business Hours: Currently Monday to Friday 06:30 – 15:00 and Saturday 07:30 – 14:30. There is no reason why a new owner could not extend production/business hours.
Employees: The vendors operate as bakers and co-Managing Directors and the business also employs the following members of staff: 3x Bakers 9x Shop staff All staff are knowledgeable and can multi-task if need be. Staff have very good relationships with the custome
Support and Training: The vendors will provide a comprehensive hand over program to facilitate a smooth transfer and continued success of the business. This should be a relatively simple process as the business has excellent management, good internal procedures and a structured workforce in place.

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