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INDEPENDENT VEHICLE HIRE IN MID-HANTS TOWN

0 Sq Ft
£295,000
  • Ref: HW1544
  • Type: Motors
  • Availability: For Sale
  • County: Hampshire
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Property Features

  • REVENUE £319,921 YEAR END 30/09/21
  • GROSS PROFITS £205,397 (64%)
  • REVENUES INCREASED BY 40% DURING LOCKDOWN
  • AUCTION HOUSE FLEET VALUATION c.£250,000 INCLUDED IN ASKING PRICE

Property Summary

·      INDEPENDENT VEHICLE HIRE IN MID-HANTS TOWN

·      REVENUE £319,921 YEAR END 30/09/21

·      GROSS PROFITS £205,397 (64%)

·      REVENUES INCREASED BY 40% DURING LOCKDOWN

·      AUCTION HOUSE FLEET VALUATION c.£250,000

·      FLEET COMPRISES 26 VANS AND 1 CAR

·      OPERATING PROFITABLY SINCE 1997

LOCATION:

Trading from secure commercial premises on a Business Park in a busy Hampshire market town close to the M3 and the Hampshire/Berkshire border.

 BUSINESS:

This independent van and car hire business has been successfully trading since 1997 competing effectively with the National car and van hire companies that also operate in the town. Very competitive on price, this business offers a cost-effective service to customers looking for either a short-term or long-term hire. The current owner acquired the business in 2017 and has implemented numerous improvements including installing Prohire, an online fleet management and booking system, replacing a cumbersome manual paper system. 80% of annual revenue is generated from the general public with the balance from the commercial sector. There are only 4 regular account customers ensuring strong cash flow and low-risk financial management.

BUSINESS PREMISES:

(all sizes are approximate & should be considered 'nominal'.)

The vendor moved the business to its current high-security yard and adjacent modern office premises in 2020. The spacious modern office offers 3 work stations and a Customer Reception Desk.

Note: Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.

TENURE:                            

The premises are secured on an annual 12 months rolling Licence with a two-month notice period. Rent for the office accommodation is £835.83 per month (£10,030 per year plus VAT) which includes all utilities. 39 car spaces are currently rented at a cost of £2,300 per month (£27,600 per year plus VAT) with more spaces available if required.

TRADE:

Accounts inspected by Adams & Co show the following

YEAR                             SALES                        GROSS PROFIT

(year end 30 Sept)

2021                              319,921                         205,397 (64%)                  

2020                              206,773                         129,032 (62%)

2019                              227,345                         154,927 (68%)

2018                              266,859                         151,302 (57%)

Management accounts for the trading period 1 October 2021 to 31 January 2022 show turnover of £91,663 with improved gross profit margin of £66,757 (73%).

Please note that if a business is VAT registered, all figures exclude VAT.

HOURS: 

Monday to Friday              0800 to 1700                     

Saturday                             0800 to 0900 by appt only

Sunday                               Closed

STAFF:

The vendor works full time managing the business and is responsible for all accounting processes on Sage Accounting software. He is supported by one employee who has 7 years' previous experience with a van hire company. He works part-time 06:00 to 09:00 Mon to Sat cleaning and valeting the vehicles pre-hire and full valet service on return. 

VEHICLE STOCK:              

The vendor informs us that the value of the vehicle fleet independently valued by one of the UK's leading vehicle auction houses was £253,350 as at July 2021. The van fleet comprises

11 Lutons

6 LWB Hi Top

8 SWB

1 Citroen Berlingo

1 Vauxhall Corsa 1.2 passenger car

LEGAL FEES:

Vendors and Buyers each to meet their own legal costs.

COMMENTS:

The vendor wishes to return to his previous employment in a non-competing business creating an exciting opportunity for a new hands-on owner to build on the solid foundations put in place over his 4 years ownership. The vendor is prepared to provide a handover with the terms and conditions attached subject to negotiation. Financial information will be made available to seriously interested purchasers after they have formally viewed the business.