Carthew, St Austel

CLK Coal Logs Kindling
Turnover circa: £340k

Adjusted Net Profit circa: £AOR

BUSINESS SUMMARY

Business Name: CLK Coal Logs Kindling
Location: Carthew, Saint Austell, Cornwall, PL26 8XG
Type of Business: Firewood & Gas Supplier

THE OPPORTUNITY

Prime Location: Strategically located in a easily accessible location with reach across the whole of Cornwall.
Established Customer Base: A loyal and diverse customer base of approx. 2000 private and commercial customers that values the convenience, quality products and service offered by CLK.
Strong Financial Performance: Consistent revenue growth and profitability over the years.
Comprehensive Product Range: Well-stocked inventory catering to the varied needs of customers including Logs, Firewood Supplies, Kiln Dried Kindling, Coal, Calor Gas, Smokeless Fuels and much more.
Experienced Staff: A dedicated and skilled team that contributes to the efficient operation of the business.
Eco Friendly Products: The business ensures reusable bags are utilised for products and their offering of sustainably sourced kindling and smokeless fuels ensure the business is open to a wide customer base.
CLK is a Cornish family-owned business trading from their premises in St Austell, Cornwall. The business specializes in kiln dried kindling in all sizes of nets, plastic bags/dumpy bags, and seasoned logs in either softwood or hardwood and is a Calor gas stocker/supplier and sells from the yard to complement their offering of a delivery service. The business delivers free of charge and offers stacking services, which places the business as a supplier of choice.
CLK has been awarded the Made in Cornwall accreditation of all their kindling, softwood, and hardwood logs and is wood sure certified.

SALE CONSIDERATION

With the owners poised to pursue other business interests CLK is on the market presenting a turnkey operation for aspiring entrepreneurs or existing chains looking to expand. The sale will encompass all aspects of the business, including its prestigious brand, loyal clientele, extensive fit out, equipment and experienced team.

The business is available by way of an asset sale to facilitate the transfer of the business to a new owner and allow the current vendor to pursue other business interests.

PREMESIS

The store and unit are in the centre of the village, Carthew and is made available by way of a lease assignment. The vendor has made significant improvements to the property and introduced low energy lighting and equipment, with security fencing and gates installed. The premises has multiple storage container units, CCTV, storage sheds, excellent parking for customers and POS equipment for the store.

The business also includes all the equipment necessary to produce the products including the kindling machine, gas cages, oil heater and tank, saw bench and associated equipment, plus 4 commercial vehicles with 1 trailer.

Viewing is essential to appreciate the quality of the business on offer and requires no further investment from an incoming operator who can capitalise on the extensive, high quality fit out to date.

LEASE TERMS

The property is currently leased on an annually renewed agreement on preferred terms, which is currently £7,200 per annum.

BUSINESS OPERATIONS

Staffing:

The business is operated by the two owners and a team of 2 staff members is known for their experience and dedication to the business.

Suppliers:

Relationships with l suppliers have been established over the years of operating and the business benefits from this for an incoming operator to capitalise on.

FINANCIAL SUMMARY

Detailed financial statements will be made available for interested parties.

MARKET ANALYSIS

The UK market for coal logs and kindling is influenced by the demand for renewable and sustainable heating solutions. With increasing awareness about environmental issues, there's a growing trend towards eco-friendly alternatives like smokeless coal logs and sustainably sourced kindling. The market has seen a steady demand in rural areas where wood-burning stoves are common.

Customer Segments:

Residential: Homeowners with fireplaces or wood-burning stoves, particularly in rural or semi-rural areas, form a significant customer base. This segment values the warmth and aesthetic appeal of real fires.
Commercial: Pubs, restaurants, and hotels that use open fires or wood-burning stoves for ambiance and heating. This segment prioritizes consistent quality and supply reliability. This business is also a supplier to local petrol stations.

Competitive Landscape:

The industry is characterized by a mix of large national suppliers and smaller, local businesses. Competition is based on product quality, price, sustainability credentials, and brand reputation which is capitalised on for CLK.

Regulatory Environment:

The UK government's Clean Air Strategy has significant implications for the coal log and kindling market. Regulations aimed at reducing air pollution include restrictions on the sale of certain types of coal and wet wood. This has led to an increased demand for approved smokeless coal products and seasoned or kiln-dried wood. Compliance with these regulations is crucial for businesses operating in this market.

Opportunities and Challenges:

Opportunities:
The shift towards eco-friendly products opens opportunities for innovation in sustainable fuels.
Increased interest in traditional and rustic home heating methods could drive demand.
Export opportunities may arise as other countries seek sustainable heating solutions.

Challenges:
Regulatory changes pose a significant challenge, requiring businesses to adapt their product lines.
The market is subject to seasonal demand, with higher sales in colder months.
Rising energy costs and economic factors can influence consumer spending on heating.

Outlook:

The future of the coal log and kindling industry in the UK will likely be shaped by continued environmental concerns and regulatory changes. Companies that innovate and adapt to offer sustainable, high-quality products such as CLK are positioned to succeed. Additionally, the market may see growth in ancillary products and services, such as delivery subscriptions or bundled offerings with other eco-friendly heating solutions.

This opportunity is uniquely placed to capitalize on the future potential of the marketplace in the UK.

FURTHER INFORMTAION

Further information is available by speaking with the us and viewings are strictly by appointment only as the sale of this business is strictly confidential.

For more information please contact us.