The Hardware Stores” DIY Retail Chain 2 Freehold Stores – Brechin and Montrose
Ref. AI043
Location : Brechin & Montrose, Scotland
Asking Price : £995,000 Inc. Net Assets
Turner Butler has been appointed to invite offers of purchase for this established and highly reputable chain of independent hardware stores trading as The Hardware Stores.

Business Profile
The Hardware Stores supply goods and services to the trade and DIY customers, selling household, electrical, decorating, gardening products, tools, fixings, fuel, engraving (https://www.ferburnengraving.co.uk) and key cutting.

The business is part of a large buying group, giving it all the benefits of a large multinational, and allowing it to offer a wide range of products at competitive prices to its customers. Currently it offers well in excess of 20,000 product lines from all the market leading companies.

The Hardware Stores has over 250 active trade customers as well as a large loyal retail following from the general public who support local businesses in both towns.

The current owners, a husband and wife team, are selling due to their wish to retire. However there is an excellent team of staff in place that will ensure a smooth and seamless transition of ownership. Staff include managers and assistant managers who run the business on a day to day basis, so much so that the vendors only work part time in the business, and this is through choice.

The business has enjoyed impressive sales and profitability over the years and is being presented as an excellent opportunity for a prospective buyer to capitalise on their hard work and grow the business further. It has a strong asset base (including the two freehold sites) and generates excellent returns.

With combined annual turnover consistently in excess of £900,000 that generates typical EBITDA of circa £200,000 p.a. (pre director drawings) and a net asset position of circa £590,000 this is a very successful and profitable business with a sterling reputation.

Equipment:
The business has its own bespoke database. Sage, EPOS/stock control software so that it can carry out its duties efficiently.

Key strengths:
• Strong track record of income and profitability
• Local independent business providing important services
• Over 20,000 different products purchased from over 70 different suppliers
• Excellent range of products and services offered
• Strong levels of marketing activity already in place, with online advertising, website and its own offers newsletter
• Circa 250 active trade accounts plus retail

Customers are always offered helpful and friendly service from the experienced staff, resulting in a high percentage of repeat business. Its excellent locations mean this very successful business features a constantly growing base of satisfied clientele and accounts.
There is constant high demand for its products and accessories, leading to a consistently strong financial performance, making this Company an exceptional investment opportunity.

Key Opportunities:
New housing developments proposed in the Brechin and Montrose areas, expanded potential customer base
• Opportunity to keep up to date with new product launches
• Huge potential for Engraving service using social media and website https://www.ferburnengraving.co.uk/
• Potential for the business to grow by increasing their social media reach
• Deliveries (especially for trade accounts)
• Ongoing development of ‘Fair and Square’ newsletter
• Potential to grow using the local council’s procurement system
• The business’ range of products facilitate the opportunity for developing and introducing new products with little expense as a trial and error products