Business description

Adult Magazine and DVD Distributor
with growing number of in-house productions

Based in Essex, but fully re-locatable, this business is the largest independent supplier of Adult Magazines and DVD’s in the UK. Offering an extensive selection to the trade and sex shops, the business has a fantastic reputation for service and price alike. The current vendor has been in the adult entertainment business for over thirty years, and in this time has built up strong and trusted relationships with its suppliers. Delivering to three quarters of the UK, the business has shown itself to be resilient in the face of competitive and economic forces.

Established in 1978, the vendor has invested considerably from the outset of business operations, in the identity of their in-house unique contact magazines’ brand. The business has the largest stock and choice possible and benefits from free advertising in a selection of the magazines supplied.

Alongside their own highly profitable magazines and DVD productions, the business is the sole top-up distributor for one of the largest Adult Material distributors in Europe. The company is unique in the U.K. in establishing very strong co-operative links with this distributor that strengthen both their market dominance and branding. They business also distributes for one of the leading U.K. production companies, and has purchased the entire back catalogue of a number of magazines and DVD’s, which allow them to have sole and highly profitable distribution of these titles.

Essentially the business has built upon its current client base and is poised for growth. A new owner with the means, the imagination and the will, can achieve success well beyond the business’ current level.

Equipment:

A fully computerised database is used of all suppliers and clients.

Customer Service:

The business manages a considerable database of clients, a great deal of whom have been supplied to from the earliest days of business trading. The vendor takes great care in understanding the client’s needs and catering editorial to suit – subscribers are never let down. The business is unique in the marketplace in that they visit each client individually with fully stocked vans on a regular basis.

Key Strengths:

The business is an organisation which the current owner has, over time, developed and nurtured, thus has maintained excellent customer relationships over many years. The business is well established and very profitable, with a loyal and growing client base, retaining a high level of long term clients.

Financial Information:

The business is being offered for sale on a going concern bassis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business has net assets of £15,000 including teo well maintained fully fitted vans. There is over £90,000 of stock included, some of which they are the sole UK owner of.

Property information

Property:

Leasehold

Lease terms:

Annual rent for the warehouse is £8,400 per annum.

Location:

The company operates from a warehouse of circa 1,000 square foot, which stores all the magazines and DVD’s ready for distribution. The building houses the main stock area, with additional internal office space. There are a number of 24 hour closed circuit television cameras in operation around the site. The warehouse also has a very secure steel door, with a roller shutter. Annual rent for the warehouse is £8,400 per annum.

Other information

Expansion potential:

The current market for this business’ service is growing and is forecast in the near and longer term for significant growth. With the potential to increase distributing the rest of the UK, and Europe, and potentially embarking into the Internet market. All of which would undoubtedly improve turnover. Currently there is no company website, or direct mail order service, which would capitalize greatly on the current well known name. With the current client base and network, there are multiple opportunities to also diversify into other adult product ranges.

Competition / Market:

The business enjoys free advertising in a selection of the magazines that it produces and supplies on behalf of others. As such there is growth potential to increase advertising to develop the business.

Support & training:

The owner of this flourishing business will provide full training on all aspects of the business when the handover takes place and will ensure the successful purchaser is fully conversant with the operation of the business.

Reasons for selling:

The vendor wishes to relocate back to Spain where he has his permanent residence, family and other business interests.