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Fourth generation professional auctioneers and valuers

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Telephone No.
07580421921
Address
Mazars LLP One St. Peter’s Square Manchester M2 3DE

ACQUISITION OPPORTUNITY – LUXURY SHORT TERM LETTING BUSINESS

Mazars LLP is trying to identify potential purchasers for a luxury short term letting business based in Manchester and Liverpool.

Background
• UK based Company which specialises in short-term let of luxury serviced apartments in the North-West on a B2B basis only.
• The apartments are furnished to a high level of service and security, located in prime locations as follows:
– Liverpool city-centre.
– Manchester city-centre; and
– Salford Quays.
• The apartments are exclusive to corporate stays only and there is availability of up to 360 people across the three locations.
• The Company leases the circa 125 apartments across 4 buildings.
• The Company has been trading since 2019 and has advanced plans to expand to an Edinburgh-based location with customers for this location already secured in part.
• Existing management would be willing to work for an extended handover period.
• Main financial issues faced by the company relate to working capital finding, meaning there is limited time available to find a buyer.

Key selling points
• Blue chip customer base, including accounts in the TV and film industry and high end professional services.
• The Company has secured a large north-west based fashion client and is the only supplier outside of the contract owner for one of the big 4 accountancy firms in Manchester.
• Prime locations in both Manchester and Liverpool with options to expand to Edinburgh, Leeds, Birmingham and Brighton next year with a leading developer .
• Flexible lease options at the three locations.
• Recently established on the Global Distributer platform ‘GDS’ and has arranged a new distribution channel to access OTA’s, expected to lead to substantially increased future bookings.
• The Company employs a highly skilled and knowledgeable workforce of 30 (12 FTE) employees based in Manchester and Liverpool

Financial Performance (£’000) Oct-19 Oct-20 Oct-21
Revenue 1,468 2,754 3,034
Rental, Rates, Cleaning & Utilities (1,087) (2,136) (2,448)
Gross Profit 381 618 586
GP% 26% 22% 19%
Administrative Costs (169) (368) (460)
Directors Costs (17) (40) (112)
EBITDA 195 210 14
Balance Sheet (£’000) Oct-21
Assets
Equipment & Stocks 143
Lease Deposits 400
Trade Debtors & Prepayments 399
Cash at Bank 300
1,242
Liabilities
Customer Deposits (506)
Trade Creditors & Accruals (438)
HMRC & Other Creditors (217)
(1,161)
Net Assets 81

Next steps
Offers are invited in relation to the shares or business and assets

Contact
For further information, please contact:
Victoria Stewart
T: 07580421921
E: [email protected]

Mazars LLP
One St. Peter’s Square
Manchester
M2 3DE