Stamp Dealer

BUSINESS FOR SALE

PHILATIC DEALER (STAMP DEALER)

Description of Business

The vendor purchases stamps from UK Auctions (largely through contact with auction agents) and from a network of contacts abroad.

The vendor does not usually sell individual stamps preferring to sell packets or albums, usually organised by territory and by date. Although he specialises in Russian and East European stamps of periods preceding 1960, the sales include stamps from territories throughout the world and include, for example, a mailing list of collectors who receive annual updates from specific countries each year.

The vendor sells mainly to a mailing list of about 150 UK based collectors. Adverts in specialty magazines are primarily designed to attract new customers who will become long term customers of the business.

The business is currently operated by the vendor out of one room in the vendor’s house.

The vendor does not use a computer or the Internet and believes that a purchaser would be able to grow the business rapidly by adopting this medium.

Financial Information

The business year-end is 5^th April. For the past two years the key data has been as follows:

	2006	2005
	£'000	£'000
Sales	101	104
Gross Profit	30	32
Profit before depreciation, interest and tax	12	14

The vendor believes that the current year should be an improvement on the previous year.

Offered for sale as part of the business is the stock of stamps which is estimated by the vendor to have a retail value in excess of £30,000.

Also offered for sale with the business are five filing cabinets (in which stamps are filed) and a small amount of office equipment.

What is for sale?

The vendor offers for sale:

An established business with a solid track record of profitability, capable of substantial expansion by someone with a knowledge of the internet.
The business can be operated from anywhere in the UK.
There are no staff or liabilities of any kind.
The established pattern of trading and supply contacts amounts to a strong niche position.
Most turnover arises from a customer list of established collectors.
Whilst the business would obviously suit a person or couple with an existing interest in stamps, the vendor does not consider a prior knowledge of the business essential.
The vendor will offer training and support to the purchaser for a period of up to one year.

Why is the business for sale?

This is a retirement sale as the vendor is 69 years of age.

Purchase Procedure

All enquiries should be made to:

Phil Needham
Hornbeam Accountancy Services Ltd
Hornbeam House
Bidwell Road
Rackheath
Norwich
NR13 6PT
Tel: 01603 720424
Fax: 01603 722392
E-Mail: Phil@hornbeam-accountancy.co.uk

Prospective purchasers should contact Hornbeam indicating:

Name, address and contact details.
Details of further information required.
A preliminary indication of any offer.
An indication of the source of the funds supporting this offer.

Disclaimers

Hornbeam Accountancy Services gives notice that:

The information relating to the business contained herein has been supplied by the vendor and has not been checked or verified by Hornbeam. The vendor accepts responsibility for the contents of this document which they have reviewed and approved.

The information contained herein is being supplied as a guide only and prospective purchasers must make their own investigations and must satisfy themselves as to the condition and prospects of the business and the accuracy and completeness of the statements contained herein.

Neither Hornbeam Accountancy Services Ltd nor any partner, employee or agent of Hornbeam Accountancy Services Ltd any authority to make or give any representations or warranties whatsoever in relation to the vendor or prospects of the business.

The information contained herein and any further information relating to the Company supplied by Hornbeam Accountancy Services Ltd is, and will be, supplied on the condition that neither Hornbeam Accountancy Services nor any partner, employee or agent of Hornbeam Accountancy Services Ltd accepts any responsibility and/or liability for any loss or damage whatsoever nature that may result or occur by reliance on such information, howsoever arising.

This document and the content of it do not, and are not intended to, constitute an offer for sale or an invitation to treat offers to purchase any company, its shares, other securities or assets. For the avoidance of doubt there is no intention to create a legal relationship and such relationship will not come into existence unless and until a formal contract, approved by respective solicitors, has been entered into. Hornbeam Accountancy Services Ltd its partners, employees and agents do not have authority to enter into oral contracts in relation to the business.

The vendor does not undertake to accept the highest or any offer and reserve the right to accept or reject any offer.

This document is strictly private and confidential and is intended solely for the information of the addressee of the accompanying letter and in connection with the potential acquisition of the business. It is not an invitation for public subscription and should not be reproduced or circulated except to the recipient’s professional advisors or bankers.

It is a condition of the provision of this information that the confidentiality obligations into which you have entered are made known to anyone to whom the information is properly given and that party must agree to be bound in similar terms.