this profitable and unique distribution business was first established in 1987 as a full service tanning supply company selling equipment, tanning lotions and accessories for the health club and tanning salon industry. In 1998 the business was incorporated into a limited company, and started to focus solely on tanning lotions and accessories. The business has been importing and distributing established brand name products through-out its history. In 2002 the u.s based manufacture of the products that the company was distributing ran into financial difficulty. As such, the business took the opportunity to acquire the operation and trademarks of the u.s. Based manufacturer. They retained the well-known brand names and retained the same contract manufacturer to continue manufacturing their products. These products have remained a cornerstone of the business since. There is limited competition, with only one other british manufacturer of similar products. With the ownership of trademarked lotion names and formula’s, the business is in a unique position in the market. Over the last 2 decades, the company has established long-term relations with clients across the health and leisure sector. Supplying nationally from their distribution warehouse and offices in the home counties, the business supplies to independent and national health-clubs, spas, hotels, resorts and tanning salons. They have also built on relations and trade with both u.k. And european sub-distributors. Currently supplying to several countries internationally, there is exceptional potential for further growth, including the u.s. And canadian markets. Alongside building the core distribution business to one of the market leaders in the u.k., the company also owns a small independent tanning salon also located in the home counties. The salon is fully staffed, has been recently re-furbished, and has £50,000 of top quality sun-beds on-site. The salon is included in the sale of the business. Equipment: the business has a fully integrated back office system for all customer records, allowing for streamlined ordering, distribution, marketing and accounts. The business operations are currently run from well-fitted offices located on the 1st floor of the 6000 sq ft modern warehouse. The separate tanning salon, has 5 “state of the art” sun-beds, with reception / booking area, and is finished to a very high standard. Customer service: the company has prided itself in exceeding customer expectations from the outset. Order processing and customer service requests are always responded to in a timely manner by the office staff, with the flexible distribution and fast turnaround afforded by holding stock in a large u.k. Based warehouse. The business focuses on producing the highest quality lotions and creams, and maintaining standards via their exclusive products and established contract u.s. Manufacturer. This focus has proven to reap rewards through growth over the years and consistent repeat orders. The company’s philosophy is to supply the very best value in terms of value, quality, reliability, and pre-sales technical advice and after sales service key strengths: the brand name trademarks and long history of the products the company produces and distributes is obviously a great asset to the business. A further key strength of the company is the manufacturing status of the business. Unlike the majority of its competition, who merely act as distributers for mainly u.s. Based manufactures, the business holds a unique position as the only uk based and owned manufacturer of the type of products in its sector. This critically allows the business to be more competitive when setting price point while maintaining profit margin. Growth and expansion opportunities: the business has so far held back from retailing directly to customers, looking to sell via high street retail outlets and other distributors. The direct retail, mail-order and internet retailing operations could all be greatly expanded, with the potential to increase turnover, margin and the bottom line. There has been explosive growth in the tanning sector in easter europe, which this business is primed to capitalise on from a strong and established base. The company already has sub-distribution relations in place in europe, and has established a solid foothold. Also unlike other u.k. And european distributors, the company owns the rights to the manufacture of their own key brands. This puts them in a unique position to produce even more revenue growth from expansion opportunities offered to the marketplace. With the distribution model in-place, and an extensive database of satisfied customers, the business could easily support new complimentary product ranges.
| Ownership: |
no |
| Lease: |
yes |
| Lease terms: |
The rent for the Salon is circa £15,000 per annum, with Business Rates of applicable of around £4,000. The Salon is leasehold, with a 5 year break in April 2011. |
| Location: |
The business is operated from a large, modern warehouse facility in the Luton area, close to major transport links. The warehouse covers approximately 6000 sq ft, with a small reception area downstairs, and toilet facilities. On the purpose built 1st floor, is approximately 500 sq ft of office space, comprising a main office area, with the directors office to one side.
The vendor currently owns the freehold of the premises, and rents the office space back to the business for around £35,000 per annum exclusive of business rates. The operation could be re-located if desired.
The Salon is located in Hemel Hempstead, and occupies approximately 1300 sq ft. There is a small reception desk, customer seating, staff facilities, toilets, and 5 sun-beds
The rent for the Salon is circa £15,000 per annum, with Business Rates of applicable of around £4,000. The Salon is leasehold, with a 5 year break in April 2011. |
