Business To Buy

Very Profitable Independent Bakery Currently Specialising in Unique High Volume Sponge Product

North West, ---Europe
Very Profitable Independent Bakery
Currently Specialising in Unique High Volume Sponge Product
Ref. ED012
Location : North West
Asking Price : Ł1,650,000
This long established specialist bakery has been successfully trading for more than 15 years and is now regarded as one of the finest suppliers of sponge products within the UK. Using only the finest quality ingredients available matched with high quality mixing and production techniques this bakery ensures that their products meet the exacting standards of their large blue chip customers consistently year in, year out. Because of this the business has built a formidable presence in its particular sector and cemented very strong relationships with its clients by becoming a key supply partner to them.
Operating from modern freehold premises (circa 11,000 square feet) the business is able to manufacture its products efficiently and profitably. The unit currently has one semi-automated production line in place, together with mixing and storage areas, however there is huge scope to add additional lines within the current site, should a new owner so require.
The business has chosen to concentrate on a specialist area of the market. It has a select number of large customers who value its expertise and manufacturing capability and it works very closely with them to ensure demand is met.
This knowledge enables the business to operate very efficiently with low overheads. The vendor has set up the infrastructure so that the production facility only operates for 2.5 days/week and this is sufficient to meet current demand!
In what can be a highly competitive industry, this business has positioned itself as a niche supplier and because of this has experienced consistent sales and has performed very impressively throughout its existence, even during the recent recession. They have never compromised their standards and have always maintained their reputation for quality, reliability and honesty.

Financials

Price: $2,042,534
Gross Income: $1,210,665
Cash Flow: $0
FFE: $0
Inventory: $0
Real Estate Value: $0

About the Business

Office Reference ID: #ED012
Year Established: 2001
Financing:
Training: The vendor 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 excellen
Facilities: The production facility is freehold and ideally situated on a very well-known business park with excellent access and close proximity to the motorways. We are advised freehold value is circa Ł700,000. Rates are circa Ł24,000 p.a. The building is modern and in an excellent state of repair. Total internal floor space circa 11,000 square feet comprising production area, stores, dispatch, locker rooms, canteen etc. with upstairs offices. Outside there is a large yard with excellent access for large volume delivery/collections. The site is very secure with alarms and perimeter fencing, gated access. NOTE- The vendor would consider leasing the property should a new owner so require subject to negotiation
Competition: The business has never undertaken any marketing initiatives. It has relied on superior product supply, knowledge and customer retention to generate sales for the last 15 years or so. There is great scope for the new owners to further develop the business and the brand and expand its product lines, sales activity, customer base and delivery area. The business could certainly benefit from an online presence.
Growth: The business has many opportunities to grow. The vendor has moulded the current business to serve a specialist part of the market though choice and to suit his family lifestyle. The business is totally reactive to its current customers and does no proactive marketing through choice. There are many new opportunities that could increase revenues and profitability still further. These include: • New marketing and sales initiatives to enter new markets and develop complimentary product ranges. At present the business does not even have a website. • Investment in a further travelling/tunnel oven which would again open up new markets/customers. This is an area the business is regularly asked about. • Manufacture of Swiss rolls, cakes bars and mini rolls. The existing plant can make these items and has made them in the past but the vendor has chosen not to pursue this range over recent time due to lifestyle factors. The business has the spare capacity to accommodate such initiatives within the current site. As already mentioned current sales are achieved through 2.5 days production time.
Business Listed By
Name: Andrew Hudson
Company: Turner Butler
Phone: 01895 25 6000

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