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Asking Price
£600,000
Description
This is a 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 classic ladies stockings also known as fully fashioned ladies nylon hosiery. Our client is the largest of five 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 total control of the production progress. The vendor has also amassed a large range of spares for the machinery, which has created a self sufficient environment; especially as all the staff are 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 Spain, whilst the remaining is supplied to the UK. The majority of customers are internet based retailers supplying into the retro-fashion and fetish markets. 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.
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