Successful Clothing Alterations Business Including Freehold Franchising Potential For Sale - Hampshire, United Kingdom

Asking price: £300,000

Sales revenue: £250,000

Net profit: £41,000

Business description: This well-organised, thriving clothing alterations business is for sale together with the freehold of the high street property from which it operates. There is believed to be a significant franchising opportunity which the purchaser may be able to exploit and which could transform the business scale and value. The business began in 1983 as a part-time enterprise for its owner, designing and making clothes. In 1999 the business, which by now also included clothing alterations and curtains, became her full time occupation. In 2004 the business relocated to its present premises. Alterations have become the most important service offered, accounting for over 90% of sales. The remainder are accounted for by dress-making and curtains. Most sales are made to individuals but there is a growing trade element comprising a number of local clothing stores including some major chains. The majority of the work is paid for upfront. The property for sale comprises the freehold of the complete shell and ground floor. There is a flat on the 1st floor which is owned on a 99 year peppercorn lease. The modern interior comprises a Customer Reception area, curtained fitting rooms and a workshop which is estimated to extend to 69 sq m. The workforce comprises 8 full time staff plus a Manager. In addition there are 4 part-timers, including the owner’s husband who looks after administration 1 -2 days per week. Over the 2 years ended July 2009 annual sales were around £250,000 generating an average Adjusted Operating Profit of c £41,000. The July 2009 balance sheet showed net assets of c £44,000 including some goodwill. The recession has had little impact on trading. The Guide Price for 100% of the shares of this business is £175,000. The balance sheet will be debt free and positive excluding goodwill as at Completion. The Property will be sold at Fair Market Value as professionally assessed and is thought to be between £100,000 and £125,000. This business should appeal not only to potential owner-operators who have some knowledge of clothing alterations but also to business people, more generally, who wish to exploit the franchise opportunity. The business location is a very attractive feature.

Property : Freehold