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Wed, May 22 2024 09:22:07 AM  |  /

International Ultra High Added-Value British Hosiery/Knitwear Brand and Manufacturer

Business Id:000871     |    Reference: AB249
Price:
£2,000,000.00
Business Description

Business Profile:

Introduction:

This enduring business & brand name was founded in the late 19th Century as a low volume hosiery manufacturer and has had a typically British history, including changing company ownership, international success, brand extensions and popularity among premium, niche customers around the world, the company holds a Royal Warrant and it is now considered part of the UK’s manufacturing heritage.

The business has a remarkably stable trading history with demand challenging supply on an almost constant basis, making the business a perfect platform to introduce new products and new sales channels.

Much has been done by the current owners to consolidate a reliable & sustainable UK small manufacturer & retailer of hosiery and knitwear; it is perfectly positioned for growth

History:

The business was founded approximately 130 years ago as a specialised manufacturer of hosiery and has remained committed to the highest quality of product in cashmere, wool and cotton for its entire history. Descendants of the founder are still be found in the offices of the company, ensuring that the company’s legacy for quality & variety stays relevant within what is a modern, high volume, highly competitive, fashion retail market.

In the long period of trading that the company has enjoyed, it has acquired and retains commercial customers that would be instantly recognisable as high added-value, high street retailers, seen in almost every capital city in the world and individual customers that would be equally recognisable.

In relatively recent times, the decision was made to extend the company’s product portfolio to include knitwear both bespoke and ready-to-wear, bringing the company’s established reputation as a UK manufacturer of the best quality to jumpers, cardigans, shawls etc. and with considerable success.

Operations:

The business is managed on a day to day basis by joint Managing Directors where one manager has responsibility for sales and client account management and the other responsible for day to day operations including factory, people, supply chain and logistics.

There are two operational facets to the business, the first being white label manufacturing for commercial customers that include famous high street, high margin brands and the second being the retailing of the product portfolio under the company’s own brand.

The company owns and operates its factory in Wales as it has done for a great many years, relying upon a trusted and skilled workforce of 57 x working across all disciplines necessary for the efficient running of a busy factory.

Products:

The company manufactures all its products in-house and these include:

  • Socks
  • Jumpers
  • Shawls
  • Ponchos
  • Accessories including hats &scarves

Sales & Marketing:

The company does not advertise but does have an informative website which details the current products, brand history and customer ordering.

The company does engage in social media marketing though in a minor way and has no presence through larger mainstream channels such as Ebay and Amazon. It has its own online store.

The company has a remarkably stable trading history with demand challenging supply on an almost constant basis, making the business a perfect platform to introduce new products and new sales channels. It has established distribution in the USA, Japan, China and Korea.

Commercial sales and customer management for white labelling is managed by one of the joint Managing Directors supported by a Sales Manager, retail sales occur via online enquiry, established customers and a factory shop is located on the premises.

Whilst competing in a market that is intensively competitive the company has carved out and developed a niche with loyal customers. This is not only due to the highly individual nature and heritage of the brand and a focus on providing authentic products along with friendly, knowledgeable and professional customer experience at all times.

Equipment:

The business is equipped with  a full portfolio of tools, equipment and specialist machines necessary for a manufacturer of this sort, along with a significant stock holding of both raw material and made-up products.

A detailed plant list is available.

key Strengths:

  • Brand – Discreetly famous and under-exploited
  • Reputation – Responsible for commercial sales in UK, Japan and USA
  • Exclusivity – Hosiery & knitted apparel of the highest value & margins
  • Equipment – Fully equipped to meet current demand
  • People – Skilled and reliable work-force
  • Holder of a Royal Warrant
  • Established relationships with ultra high added value customers

Critically the brand is responsible for maintaining goodwill, driving referrals, repeat custom and other sales.

Growth and Expansion Opportunities:

The business operates very much within the scope of the vendors’ self-imposed financial limits and could grow rapidly by:

  • Expanding the brand by means of a determined investment in marketing, advertising, sponsorship and typical brand-building techniques
  • Product development
  • Expansion of manufacturing capacity
  • Sourcing product from outside the UK to supplement its UK manufactured production

Employees:

The company employs the following:

2x Managing Directors

42 x Machine Operators, knitters and finishers

2x Engineers

1x Machine Room Manager

1x HR Manager

1x Health & Safety Manager

1x Admin & Finance Manager

6x Designers

1x Sales Manager

Premises:

The business operates from secure office and workshop premises on a discrete, rural location, in a building, of circa 10,000 square feet to include: office area, workshop, mezzanine, storage and kitchen & toilet facilities. There is further circa 4,000 square feet in the building rented to a dance school which could be available for expansion.

The premises benefit from solar panelling and recent energy saving upgrades, and a comprehensive security system with alarm and CCTV cameras protecting people, premises and goods.

The premises are Freehold and wholly owned by the company.

Business Hours:

Monday, Tuesday, Thursday Friday:   06:00 – 22:45

Saturday:         Closed

Sunday:            Closed

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.

Year End 2022 Turnover circa £2,400,000

Year End 2022 Gross Profit circa £758,000

Year End 2022 EBITDA circa £226,000

Stock levels currently circa £870,000

The split in turnover between hosiery and knitwear is circa 60/40% with online retail sales accounting for 15% of total turnover.

White label production is circa 63% of sales and own brand is circa 37%

60% of total sales are for export.

Reason for Sale

This sale is a corporate divestment though the two Managing Directors each own a small shareholding. Of the two Managing Directors, one wishes to retire in a planned foreseeable period while the other wishes to remain in the longer term.

It is felt that the company is at an appropriate point for a new owner with the resources to capitalise on the company’s prospects and develop it to the next level of growth.

Support and Training:

The Managing Directors are happy to provide all that is required for an agreed handover period and to aid the new owner with the growth and development of the company

 

 
Business Information
Turnover:£2,400,000.00 Annually
Is this business relocatable: No
Business Sector: Clothes manufacturing companies
Statistic Information
Total Views:
Impressions:
Total Enquiries:
Last Viewed:
Last Updated:
Last Enquiry Made:
Business Profile
Equipment: The business is equipped with a full portfolio of tools, equipment and specialist machines necessary for a manufacturer of this sort, along with a significant stock holding of both raw material and made-up products. A detailed plant list is available.
Key strengths: • Brand – Discreetly famous and under-exploited • Reputation – Responsible for commercial sales in UK, Japan and USA • Exclusivity – Hosiery & knitted apparel of the highest value & margins • Equipment – Fully equipped to meet current demand • People – Skilled and reliable work-force • Holder of a Royal Warrant • Established relationships with ultra high added value customers Critically the brand is responsible for maintaining goodwill, driving referrals, repeat custom and other sales.
Key Opportunities: na
Financial performance: na
Asking Price: 2000000
Advertising and Marketing: The company does not advertise but does have an informative website which details the current products, brand history and customer ordering. The company does engage in social media marketing though in a minor way and has no presence through larger mainstream channels such as Ebay and Amazon. It has its own online store. The company has a remarkably stable trading history with demand challenging supply on an almost constant basis, making the business a perfect platform to introduce new products and new sales channels. It has established distribution in the USA, Japan, China and Korea. Commercial sales and customer management for white labelling is managed by one of the joint Managing Directors supported by a Sales Manager, retail sales occur via online enquiry, established customers and a factory shop is located on the premises. Whilst competing in a market that is intensively competitive the company has carved out and developed a niche with loyal customers. This is not only due to the highly individual nature and heritage of the brand and a focus on providing authentic products along with friendly, knowledgeable and professional customer experience at all times.
Growth and Expansion: The business operates very much within the scope of the vendors’ self-imposed financial limits and could grow rapidly by: • Expanding the brand by means of a determined investment in marketing, advertising, sponsorship and typical brand-building techniques • Product development • Expansion of manufacturing capacity • Sourcing product from outside the UK to supplement its UK manufactured production
Premises: The business operates from secure office and workshop premises on a discrete, rural location, in a building, of circa 10,000 square feet to include: office area, workshop, mezzanine, storage and kitchen & toilet facilities. There is further circa 4,000 square feet in the building rented to a dance school which could be available for expansion. The premises benefit from solar panelling and recent energy saving upgrades, and a comprehensive security system with alarm and CCTV cameras protecting people, premises and goods. The premises are Freehold and wholly owned by the company.
Business Hours: Monday, Tuesday, Thursday Friday: 06:00 – 22:45 Saturday: Closed Sunday: Closed
Employees: The company employs the following: 2x Managing Directors 42 x Machine Operators, knitters and finishers 2x Engineers 1x Machine Room Manager 1x HR Manager 1x Health & Safety Manager 1x Admin & Finance Manager 6x Designers 1x Sales Manager
Support and Training: The Managing Directors are happy to provide all that is required for an agreed handover period and to aid the new owner with the growth and development of the company

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