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Manufacturing

Clothing & Clothing Accessories

Advent Business Sales are delighted to offer to the market this extremely well established business, which has been trading for the last 15 years. The current vendor has now decided to sell due to retirement intentions. The limited company is involved in the manufacturing of old fashioned ladies stockings or also known as fully fashioned ladies nylon hosiery. Our client is one of four world wide manufacturers, which produce a product from a by gone age brought up to date with modern yarns. The fully fashioned product is knitted to the shape of the leg. This is a specialised niche product. The business owns machinery that dates back to the 1950 s. These machines are no longer available, which provides our client with an enormous trading advantage. Our client has purchased a dye house, which specialises in small batches. This vertical integration enables our client to be in control of the production progress. The vendor has also massed a large range of spares for the machinery, which has created a self sufficient environment; especially as all the staff is fully skilled. The product is an extremely well recognised brand, which is a quality-specialised product for the sophisticated lady, which will never be seen on department store shelves. The stockings are of a very high quality of a very fine gauge with a labour intensive process. 60% of sales are exported predominately to America, Germany, Holland and the Canary Islands, whilst the remaining is supplied to the UK. The majority of customers are internet based retailers supplying into the fetish market. The customers typically mark up by 200% to 300%. All clients pay the vendor by pro forma or cash on delivery and a few within 30 days. Sales historically have witnessed stable increases of 5% per annum, which is also projected for the next financial year. The vendor has also factored in an 11% increase in price over the next 12 months which will push net profits even higher. Due to retirement plans, the owner has not exploited several lucrative areas. Firstly, a new owner could develop Internet sales direct to the public. This would substantially increase net profits if only 30% of sales were at the higher margin retail level. The business owns 3 knitting machines. By choice they only run 2. This excess capacity could be filled with more marketing. Another area is the manufacturing of medical hosiery. This market is serviced by 6 to 8 suppliers who vary from small to large companies (some of whom have sales in excess of 30 million per annum). The vendor has informed us that he has been offered a 250,000 contract for medical hosiery. Our client also owns 8 RHZ knitting machines, which produce a genuine vintage article with a reinforced head and toe. There is huge potential to service this market via the acquisition of new machines. The business is also able to produce fancy prints if needed. There is vast potential to supply associated products such as suspenders, bra s and corsets. Our client can manufacture some of the lines on existing machinery. Our client has the largest range of the other three manufacturers, and probably the largest sales and profits. This presents an excellent opportunity to acquire the competitors and to have a world wide monopoly. Our client has ample capacity and has a reputation for never failing to deliver. Hence the customer base is naturally increasing as more and more customers turn to the owner due to his reliability and quality. The business is run in a management capacity by the husband and wife team with a further 10 staff at the factory with another two at the dye house. Stock at cost is in the region of 6,000. All stock is pre-sold. The manufacturing operates on a 24 hour basis with the dye house 6am - 4.30pm. The vendor is willing to conduct an in depth hand over subject to negotiation. The dye house has additional capacity and also conducts a lot of sample sets for large hosiery companies. They have recently been approached to dye socks. This is exceptional opportunity to acquire a niche business with virtually no competition and with additional spare capacity. An aggressive new owner could substantially increase net profits either by developing direct retail via the internet or by acquiring competitors. REF:8939NG FINANCIAL INFORMATION We have been advised by the vendor of the following: Annual sales: 400,000 Gross Profit: 20% Accounts will be made available to interested parties after a viewing has taken place. Please let us know if you require finance for the purchase of a business. TENURE: Leasehold Original lease: TBC Remaining lease: TBC Review every: TBC Rent: We are advised that the annual business rates are currently: TBC VIEWING Please DO NOT approach the business or its employees without a prior appointment. All appointments are to be made via our office.

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