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Frozen Food Wholesale And Distribution Business For Sale

Location  United Kingdom
Asking Price Range  < $250K
Gross Revenues  $420420
Net Profit / Cash Flow  $0
Cash Flow Type  Sellers Discretionary Cash
Seller Finance  Not Disclosed
Year Established  2000
Number of Employees  1 - 3
Relocatable  Yes
Number of Employees  1 - 3
Real Estate  Leased
Training  The vendor will provide training for an agreed handover period.
Reason for Sale  The vendor is now approaching retirement
Description  Frozen Food Wholesaler, Supply & Distribution Business Ref.AF148 Location Home Counties Asking price: œ30,000 (negotiable) The business supplies wholesale goods mainly to the independent sandwich bar market with around thirty customers nearly all of whom have twice weekly deliveries. Customers are located in Reading, Wallingford, Botley, Oxford, Aylesbury, Watford, Acton, Hammersmith, Shepherd's Bush, Marlow, Maidenhead, Abingdon. Nearly all customers pay cash on delivery, one customer pays weekly and two have a 28 day account. In 2008 the company had sales of œ882k and gross profits of œ149k. The economic downturn caused a number of customers to go out of business and sales have been further reduced by the reduction in footfall in the high street. The combination of these major factors has reduced sales in the intervening years to its current level of circa œ240k per annum with gross profits currently running at 20%. The company has been under capitalised for some time. This was caused by debts incurred by a previous business partner. The effect of this is that the business has not always been able to take advantage of lower cost prices offered for bulk purchases. I estimate this has reduced profits by about 5-10%. Also, being able to offer lower cost products to customers almost certainly leads to selling other products. For example a number of customers (and ex-customers) will only buy a certain brand of back bacon. Offering this product (which can only be bought on a pallet basis costing approx œ2000) would increase profits to current customers by œ100 per week and by offering it to ex-customers could increase this figure to œ200-œ300 per week (œ10,000-œ15,000 per annum). Similarly, I estimate that investment in chicken (cœ2100 per pallet) would increase gross profits by œ200 per week (œ10,000 per annum).
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