Freehold Trade Manufacturers Of Mattresses & Divans For Sale

Business description

SUMMARY OF BUSINESS
The company was founded 40 years ago by the current director and is a small family run business. The business is well known and a highly successful bed and mattress manufacturer. They were probably the first electric bed manufacturer in the UK 30 years ago.
The business is operated from freehold premises of approximately 46,000 sq ft, set in 1.5 acres of grounds.

CUSTOMERS & MARKET
Client base: Mobility shops, specialist shop, bed retailers (independent and chains) and occasional direct retail, caring for middle to top end of market.

MARKETING STRATGEY
Reputation for high quality and an efficient delivery service with 400 regular clients. The director has never actively pursued customers. He does not compete on price.
THE OPPORTUNITY
• Opportunity to acquire a business with a good gross margin and EBITDA margin
• Scope for expanding client base, for example by employing agents or sales representatives and covering more geographical areas
• Scope for export sales, for example; divan storage bed is proving popular in Spain
• Scope for retail sales via the web and direct marketing companies
• A loyal and conscientious staff base and with established expertise and excellent technical capabilities
• Scope to increase production within existing infrastructure – employing 3 additional staff in the mattress department could triple production to supply furniture stores and shops

COMPANY OVERVIEW
The company is a limited incorporated company with two directors and one shareholder. After many years of trading an established repeat customer base of 400 has emerged.
MARKET TRENDS
The business was witnessing a natural sales increase of approximately 4 – 5% from 05 to 07. The credit crunch resulted in a revenue drop of 3.8% in 08 and 1.58% in 09. The owners reacted by employing a sales agent, which has slowed the decline and should show a growth for year ended April 2010. The agent only covers 4 counties.

The ageing population, as well as popularity of our client’s electric beds, as well as demand from Europe for the well priced lift up storage divan (together with its strong client base) suggest the company will return to normal growth levels.

A survey conducted 15 years ago indicated an approximate weekly industry manufacturing of 120,000 units. As the population has grown so has the number of units.
PRODUCT & SERVICES
The beds and mattresses are aimed at the mid to upper market. Our client manufactures on average between 280 to 400 units per week. Mattresses average selling prices vary from £40 to £600 whilst beds average selling prices vary from £60 to £1,000.

An efficient 7 to 14 day turnaround and in house delivery ensures quality and just in time capabilities.

Every bed is individually made to ensure a superior quality. Bespoke beds, one off’s and even round beds are proving popular.

Our client has the capability to mass produce, which could bolt onto the existing operation
CUSTOMERS
Analysis of customer spend from August 08 to July 09 reveal 400 clients varying in revenue from £419,000 to £25. The largest customer accounts for 16.8% of sales and is all derived from the sale of electric beds.
The top 20 customers account for 50% of sales revenue.

SALES & MARKETING
The business employs 1 full time sales manager and 1 agent, who covers 4 counties.

Property information

Premises details:

The company operates from substantial industrial premises approximately 46,000 sq ft with offices, warehousing, manufacturing and storage.
The premises are owned by our clients.

Other information

Expansion potential:

SCOPE FOR DEVELOPMENT

There is scope to increase turnover through further sales agents or sales representatives covering larger population centres such as Manchester and Birmingham.

Also calling upon furniture shops as only a few are supplied to at present.

Recent orders from Spain indicate that export is an area for development.

Trading hours:

Day Offices Factory Delivery Staff
Mon – Thurs 8am – 4.30pm 8am – 4.30pm
Fri 8am – 3.45pm 8am – 3.45pm
Sat 8am – 12 noon 8am – 12 noon

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