A retirement sale of a long-established, substantial, kitchen and bathroom design business, in an excellent location in the Thames Valley and with a most impressive showroom. This business has been in the same location since its establishment more than 20 years ago. The founder was a kitchen showroom designer by profession and this is evident from both the location and the way the showroom has been fitted out.
In the beginning the business was selling kitchens-only from a single unit. Bathrooms were added in 1999. The showroom premises extend to c 230 sq m, with 8 kitchens and 6 bathroom displays, a general office and storage space.
The trading area is the central part of the Thames Valley which, according to Wikipedia, is one of the wealthiest and fastest growing areas in the EU.
Kitchens account for around 70% of total sales. Installation is arranged by the Company but carried out by a roster of sub-contract installers working full time on the Company’s projects.
There are 3 FT employees plus the founder and his wife who also work Full Time in the business.
Sales in the current year are expected to reach c £1.2M generating an Adjusted EBITDA of c £160k. Sales peaked at c £2M in 2005 before the financial crash and recession.
The Thames Valley area is likely to produce sales growth in its own right but there are also opportunities to exploit Social Media and to invest more behind the website. The showroom is a perfect environment for cookery displays which have proved popular and effective in the past.
The Guide Price for 100% of the shares is £495,000 and the Balance Sheet will be debt free on Completion. The vendors will provide full handover support on terms to be agreed for up to 6 months. We have agreement in principle from a funder for a loan of up to £250k against the purchase of this business.