LADIES HAIR & BEAUTY SALON IN SOUTHAMPTON (East)

0 Sq Ft
£29,950
  • Ref: HW1535
  • Type: BEAUTY, Hairdressers
  • Availability: For Sale
  • County: Hampshire
  • Make Enquiry

Property Features

  • OPERATING FROM SAME LOCATION 40+ YEARS
  • DENSELY POPULATED SUBURB - SOUTHAMPTON EAST
  • VENDOR WORKS PART-TIME ONLY
  • 9-YEAR LEASE; RENT ONLY £100 PER WEEK
  • 6 DRESSING STATIONS; 3 BACKWASH
  • DEDICATED BEAUTY TREATMENT ROOM
  • ANNUAL REVENUE £76,854; GROSS PROFIT £68.768 (89%)

Property Summary

ESTABLISHED LADIES HAIR & BEAUTY SALON
OPERATING FROM SAME LOCATION 40+ YEARS
DENSELY POPULATED SUBURB - SOUTHAMPTON EAST
9-YEAR LEASE; RENT ONLY £100 PER WEEK
6 DRESSING STATIONS; 3 BACKWASH
DEDICATED BEAUTY TREATMENT ROOM
ANNUAL REVENUE £76,854 @ 89% GROSS PROFIT

LOCATION:

The business premises are located at one end of a busy community parade of shops and close to ASDA. Access is via its own ground floor entrance making the salon completely independent of the business below. The parade of community businesses includes a Co-Op supermarket, a bakery, fish and chip shop and a chemist which generate significant passing trade. This popular residential suburb is located on the eastern outskirts of Southampton close to the M27.

BUSINESS:
Established over 40 years ago, this popular ladies' hair and beauty salon offers 6 dressing stations and three backwash stations with a separate beauty therapy room. It is secured on a renewable 9 year lease with a manageable rent of only £100 per week (£5,000 per year). Sales currently average just over £1,500 per week including revenue from the Beauty Therapy room which is offered to independent therapists to rent on a daily or weekly basis. A steady flow of passing trade is drawn by the salon's prominent, highly-visual corner position adjacent to the busy community Post Office and convenience store at one end of the parade.

BUSINESS PREMISES:
(all sizes are approximate & should be considered 'nominal'.)
Located in a busy parade of shops in a popular residential suburb to the east of Southampton. Ideally positioned, it enjoys its own independent ground floor side entrance which opens to a flight of stairs up to the first floor salon. The premises are divided into a Hair Colour Selection station; staff rest room and kitchenette with microwave oven, a washing machine and tumble drier; Customer Reception area; Customer WC facilities; Main Salon offers 180 sq ft/17sq m measuring 14ft x 13ft (4.3m x 3.9m). In addition is the Beauty Treatment Room measuring 12'2" x 5'5"/3.7m x 1.7m (67 sq ft/6 sq m). The salon is illuminated by spot light arrays.
Note:
Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.

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

There is no private accommodation included with this opportunity

TENURE:
This is a leasehold opportunity with a 10 year lease in place which expires in 2021. The lease is a protected lease within the terms of the Landlord & Tenant Act 1954 and therefore renewal rights apply. The current rent payable is £5,000 per year. There are 5 yearly rent reviews with the next review due in 2021.
Please be aware that the landlord will require references to support your application as a tenant and satisfactory bank and trade references will be requested. In addition, the landlord may ask for a rent deposit equal to 3 or 6 months dependent upon quality of references and status of the buyer.

RATES:
The rateable value of the business premises is £3,950 and therefore no rates are payable in 2019/20.
NOTE:
This information has been obtained either from the current rate demand for the property, by telephone from the local authority or by reference to the VOA website. The amount payable is the standard rate for the Rateable Value shown. In some circumstances this may vary, and therefore it is recommended that potential buyers make their own enquiries through the local authority to check the applicable rateable value and whether the rates payable will be the figure quoted above.

SERVICES:
We understand from the vendor that mains electricity and drainage are connected to the property.

TRADE:
Accounts inspected by Adams & Co for the year ended 05/04/19 show turnover of £73,908 with healthy gross profits of £66,485 (90%). This compares favourably with the previous year's figures of £76,854 & Gross profits of £68,768 (89%). After deducting operating costs the owner takes adjusted net profits of £14,400 for the year.
Please note that if a business is VAT registered, all figures exclude VAT.


HOURS:
Monday 09:00 to 14:30
Tuesday to Thursday 09:00 to 17:00
Friday 10:00 to 19:00
Saturday 09:00 to 16:00
Sunday Closed


STAFF:
According to the latest accounts, the wage bill is £34,963 per year. The owner does not work there full time which suggests there is scope for a full time new owner to reduce the number of staff and overheads and increase the net profits. There are currently 2 full time and 3 part time employees.

STOCK:
The vendor informs us that the value of the stock varies throughout the year but is currently around £3,000.

LEGAL FEES:
Vendors and Buyers each to meet their own legal costs, but if a lease is to be assigned from the vendor to the buyer they will also be expected to share the landlord's legal costs on a 50/50 basis. If a buyer wishes to negotiate a 'new' lease, they will be responsible for all the landlord's legal costs.

LOCAL AUTHORITY:
Southampton City Council

COMMENTS:
The vendor is spending increasing amounts of time away from the salon due to child care issues forcing a reluctant sale. This has created an exciting opportunity for a full time, hands-on new owner to build on the solid foundations laid down in the past.
Financial information will be made available to seriously interested purchasers after they have formally viewed the business.

INTERNET:
Potential buyers wishing to find out more about the surrounding areas are invited to 'search' under 'SOUTHAMPTON', where numerous sites are available for perusal, or specifically go to 'upmystreet.com' and use the post code 'SO30'.

VIEWING

If you wish to discuss this business opportunity in greater detail, or arrange an appointment, please call Nick on (023) 8025 3910

PLEASE DO NOT MAKE CONTACT DIRECTLY WITH THE BUSINESS