having had a presence in this historic market town since the 1920’s, this business, formerly a franchise dealership for one of the major manutfacturers, has been under the stewardship of the current owners for the past thirteen years. With a team of fully trained staff, this business is one of the leading outlets in its area for mot’s, service, repair and maintenance as well as the sale of used cars. Bodywork is also managed on behalf of customers, out-sourced through a local body shop with which this business has had a longstanding relationship. Not surprisingly, as a former franchise dealership, a large proportion of turnover comes from working on the vehicles of the particular manufacturer with which this business previously had such excellent ties and this is perhaps no more so than in relation to its used car sales. However this business can and does work on all marques, makes and models. As would be expected of a former main franchise dealer, this is a very impressive set up, comprising a very well presented showroom with space for the display of approximately 12 cars, office space, workshop areas accomodating 6 bays including the mot station, a service reception area together with a separate valetting bay – all surrounded by parking for both customers’ cars and the display of further used vehicles. The on-site facilities ensure that a quality job is completed each and every time with all repair and maintenance work undertaken with the greatest care and attention. Employees have been carefully recruited and trained to ensure that their product knowledge and technical proficiency is extensive and current. All staff understand the importance of customer satisfaction and the impact it can have on the future success of the business. Consequently all strive to ensure customer expectations are managed effectively, enquiries are dealt with efficiently and work on vehicles is completed on time. As a small country town garage – nothing is too much trouble – the business even offers a ‘pick up and drop off’ service as well as customer courtesy cars. This company can boast an extensive client base with many customers having been loyal to the business throughout its many years of operation. Whilst a few customers are from the trade – particularly for mot’s, the vast majority are private motorists attracted by the excellent service, high quality workmanship, reliability and above all honesty and integrity displayed by the business. The business is very competitive with other local service and repair outlets – and the main franchise dealerships in particular, choosing also to differentiate itself by the quality of its service. This is a very well managed and profitable garage. With turnover for the financial year ending september 2008 of £1.96m generating gross profits of approximately £565,000 and a pre-tax net operating profit of almost £62,000 after directors’ remunerations of £90,000, this is an excellent opportunity for an existing operator to extend their presence in the kent garage services’ marketplace or for a new entrant to establish a firm foothold in the sector by acquiring a very impressive, former main franchise dealership. Key strengths: having had a presence in this town for almost ninety years, this ‘country town garage’ is a very well established business that has built an excellent reputation for high levels of service, honesty and integrity within the local area. The business enjoys several income streams – from mot’s, service and repair as well as used car sales. It is particularly highly regarded for working with the vehicles of the manufacturer for which it was previously a main franchise dealership. No one could fail to be impressed by the business and the excellent facilities on site. This garage is ideally located in a highly affluent area of kent in a prominent position in this very prosperous and commercially active town and within a few minutes walk of a train station with a regular service into central london – perfect for those dropping their car off on the way to work. As well as being close to one of kent’s major motorways, the business enjoys high levels of passing traffic maintaining top of mind awareness amongst motorists. This business has a very highly skilled, dedicated and loyal team of fully trained technicians many of whom have been working with the business for a number of years. The business has an excellent loyal customer base of mainly private motorists, drawn from the numerous towns and villages within a 15 mile radius of its location and attracted by the technical skills and expertise available at rates a fraction of those of the nearby main dealers, but above all the high levels of traditional customer service offered by the business. Key opportunities: there is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's services, a new owner contributing fresh ideas, particularly in the areas of advertising and marketing, will have every advantage of building on an excellent platform. With owners having been involved in the motor trade for a number of years, an injection of new blood, perhaps introducing new ways of working and better utilization of technician’s hours will generate efficiencies within the business and increase productivity. Certainly capacity exists within the business to increase turnover, particularly in relation to servicing, where only 80% of ramp capacity is used – greater utilization of which would have a significant impact on profitability. Further growth may also be available by extending the opening hours of the used car sales operation into sunday – often a major shopping day for those looking to purchase previously owned vehicles. And with a management structure which includes three highly paid directors – not all of whom are fully occupied within the business, there is ample room to cut staff costs.
| Ownership: |
no |
| Lease: |
yes |
| Lease terms: |
The current lease is due to expire in March 2011. Rent is £47,000 per annum with Rates of £12,000 per annum. |
| Location: |
The business is prominently located in an attractive, affluent, historic town in the heart of the Kent countryside. Positioned on a major thoroughfare, the business benefits from high levels of passing traffic. Close to one of Kent’s busiest motorways, there are many towns and villages within just a few miles providing a healthy customer flow and passing trade.
The large, impressive, well maintained, rented premises have been furbished to a good standard. The premises include a Main Workshop with four 2 post ramps, a separate Workshop with a 4 post ramp, a MOT bay with its own ramp, a Service Reception area and a Car Valeting bay. There is also a very well presented showroom to display approximately 12 cars, forecourt space for the display of a further 6 cars and an area to the rear of the premises for the display of a further 12 vehicles for sale. In addition there are 12 parking spaces for customers’ cars.
The current lease is due to expire in March 2011. Rent is £47,000 per annum with Rates of £12,000 per annum. With one of the Owners of the business as the Landlord, negotiating a new and longer lease is considered a formality. |
