Project Star
Fourth generation professional auctioneers and valuers
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: Victoria.stewart@mazars.co.uk
Mazars LLP
One St. Peter’s Square
Manchester
M2 3DE