Property Descriptions

Well Established & Profitable E-Cigarette/Vaporizer Business Asking Price: £2,500,000 Location: East of England 7 rented Premises Turnover: circa £2.9m p.a. Gross Profit: circa £1.195m p.a. Adjusted EBITDA: circa £475,000 p.a. Net Assets: circa £389,000 Asking price includes: Running Successfully for over 14 years Flexible premises, warehouse and online shop Established Loyal Customer Base Excellent shop managers Fully Operational Website and online shop with consistent sales Director will ensure smooth handover Net Assets exclude cash, debt and investments but include a working capital float of c£50k. Introduction: Turner Butler has been appointed to invite offers of purchase for this established and highly profitable specialist vaping business that has an excellent customer base and established retail and website presence. Business Profile: This business was set up by the owner 14 years ago Having worked with a number of global manufacturers and carrying out extensive international due diligence, the owner established a business to provide the best vaporisers and the finest naturally derived flavours in the market as well as a range of accessories and support. The business has grown predominantly through word of mouth and repeat business. All the staff are experienced advisers in the vaping industry and have a wide breath of knowledge on specialist products. Equipment: The company has all the necessary infrastructure for a new owner including financial software, till systems and an online shop and payment portal. Key strengths: • Having successfully traded for many years this business has built up an enviable reputation based on service. • Superb customer base. • Impressive levels of customer retention and repeat business. • Great retail presence across 7 sites including shopping centres. • Excellent profitability • Significant scope for further expansion • Excellent staff Key Opportunities: The vendor has built a good team of sales people who have established a solid track record with impressive profits. The model is simple and proven. The company has seven retail outlets, a warehouse and a fully functional online shop. There are numerous opportunities to develop further sites and the owner has a track record and proven model to mobilise sites further sites quickly and with minimal costs. There are many other opportunities for growth both within the current retail sites and expanding into further sites. There is an opportunity to increase sales through strategically located retail outlets with adjacent car parking. There are also numerous opportunities for retail ‘pods’ to be located in prominent retail shopping centres. The online shop could be further developed with specialist video tutorials and link building to other forums. Most importantly of all the business could buy direct from Asia rather than through a distributor and significantly increase its margin. Financial performance: The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. The business achieved turnover circa £2.9m per annum last financial year. Resultant gross profits circa £1.195m per annum. Adjusted EBITDA after allowing for a manager to replace the owner was circa £475,000. Equally impressive figures have consistently been posted over previous years as the business enjoys high levels of repeat business from its loyal customer base. Trading in the current year is similar to if not slightly better than in the 2023-24 financial year. Year End is October. All tills and sales equipment owned by the business is included within the sale price, as is stock and a working capital float of £50,000. Asking Price: The Asking Price of £2,500,000 is for 100% of the issued capital of the company. The final selling price will have a £1 for £1 adjustment for any rise or fall in this benchmark Net Asset figure of £389,000 at completion. Advertising and Marketing: The business has historically relied on repeat business and a large percentage of turnover is from existing clients. The owner has invested funds into a dedicated website which consistently produces between £20,000 and £30,000 sales per month. Given the nature of the product there are strict regulations and restrictions on certain forms of advertising. Further marketing efforts could be developed with online tutorials, blogs and vaping forums. Growth and Expansion: Key growth areas are expanding the retail shops where there is outside parking Expansion of retail ‘pods’ in shopping centres where footfall is high. Expanding the advice and chat forums on the current website to drive more traffic to the online and retail shops This is an ideal opportunity for a specialist bolt on to an existing vaping business or as a stand-alone investment. Premises: The business operates from one warehouse and 7 rental premises. There is flexibility on these lease terms and opportunities to expand further outlets. Business Hours: Monday – Sunday with various opening times depending on the outlet ranging from 8 to 8 or 10 to 4. Employees: The business has 25 staff – 3 in the warehouse dealing with the website and handling orders, 2 p/t drivers and 2 f/t drivers and the remainder are retail staff. Support and Training: The current owner would be happy to provide full support at handover and may be prepared to stay on for a further period should a new owner so require subject to negotiation.