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Description

One of the busiest bars in Guernsey. High margins, high profits, high foot fall, high reputation! A superb money making inverstment.

COCKTAIL BAR

ST. PETER PORT, GUERNSEy
PRICE: OFFERS INVITED
REF: WB102

* Excellent return on investment

* Good growth prospects

* Strong profitability

* Central location in an affluent community



DESCRIPTION

A modern, stylish cocktail bar with a stunning interior, serving cocktails, a variety of other alcoholic drinks and a light food menu. The bar can hold 120 guests and regularly serves up to 2,500 clients a week, who consume nearly 2,000 cocktails. It attracts a wealthy, varied clientele from office workers in the prosperous, nearby finance industry to affluent individuals resident on the island. It enjoys an exceptional gross profit, still has scope to grow its earnings and has received critical acclaim from the national and local press.

LOCATION

The business is based in St. Peter Port, the capital and financial centre of the beautiful Channel Island of Guernsey. Situated a couple of minutes' walk from the town centre, in the heart of the financial community, the bar is located on a busy esplanade that gives home to a variety of shops, offices and restaurants. There is plenty of parking nearby as well as the central bus terminus, and the bar looks on to Havelet Bay and enjoys views of Castle Cornet and the islands of Herm and Sark.

THE BUSINESS

The draft accounts for the year ended 31st May 2005 show a turnover of over £530,000, with a gross profit of just over £410,000 or a gross margin of over 77%. The business makes a healthy operating profit of £186,600 after adjusting for director's remuneration and depreciation. This represents an excellent potential return for a new owner with a first class opportunity to grow the business and cut costs. Moreover, the business has enjoyed a vigorous start to the new financial year with sales and profits sharply higher than the previous year.

THE PROPERTY
The bar occupies part of the ground floor of a modern building built in granite, with a glass frontage overlooking the Albert Marina. It has been extensively and smartly renovated, with the last refurbishment taking place in November 2004.

GROUND FLOOR:
Ground floor entrance leading to open plan bar area with snug and six booths.

Floor area: 60' x 18' (approx). 1,080 sq.ft. or 100.30 sq. ms.
Private function area: 16' x 14' (approx). 220 sq. ft. or 20.80 sq. ms.
Open plan bar: 22' x 12' (approx). 340 sq. ft. or 31.60 sq. ms.
Kitchen: 19' x 18' (approx). 342 sq. ft. or 31.70 sq. ms.

Ground floor entrance with access to:

BAR AREA: Hardwood strip flooring. Suspended ceiling with air conditioning units. Variable down lighters. Six circular leather clad booths with inset up lighters. Full length bar with granite working surfaces and inset lighting. Rear bar housed on custom-made hardwood shelves with sophisticated backdrop lighting. Fully fitted throughout with integrated appliances. Various pieces of expensive artwork and sculpture.

REAR FUNCTION ROOM: Wall mounted plasma screen. Leather bench seating. Folding hardwood glazed doors to main bar area. Suspended ceiling with inset speakers and central fan. Hardwood flooring.

Side access to male and female WCs, staff WC and emergency exit.

LADIES' W.C.: Ceramic flooring and slate cladding to walls, two toilet cubicles with concealed cisterns, two vanity units with inset mirrors. Suspended ceiling.
GENTLEMENS' W.C.: Ceramic flooring and slate cladding to walls, four urinals, one toilet cubicle with concealed cistern, two vanity units with inset mirrors.

KITCHEN: Recently installed kitchen, fully stainless steel with a six-ring stainless steel gas oven with an additional two-ring burner, Falcon 350 griddle, Olis stainless steel twin deep fat fryer, and three integrated stainless steel fridge fronts. Caterlux hot cupboard, full extractor units.

REAR HALL: Ceramic tiling and flooring, Staff W.C. and store with fire exit.

HOURS Monday to Saturday 4.00 pm to 12.45 am.
Sunday Closed.

STAFF One director plus 4 full-time staff. The employed staff wages bill is approximately £120,000.

TENURE The property is the subject of a lease dated 31st March 1975 for a period of 42 years, which has been extended to expire on 24th June 2017. The tenant is responsible for interior repair and decoration and to pay a fair proportion of the exterior decoration. The current rental is approximately £31,000 per annum and there are three yearly rent reviews with the next review due in June 2008.

RATES The rateable value is £xxxx.

LEGAL FEES Vendor and purchaser to meet their own contractual cost.

FINANCE This business should readily support loan finance, subject to status. For further information, please contact Lakey & Co Offshore.

PRICE Our client is inviting offers in excess of £725,000 for the leasehold interest of the business.

STRUCTURE The owner is selling the shares in the company. As such the net current assets are to be sold separately and additionally at valuation, upon completion. At 31 May 2005, the net current assets of the company were £105,491, represented by stock of £10,300, debtors of £51,582, cash of £71,740 and short-term creditors of (£28,131).

VIEWING Strictly by appointment through Lakey & Co.

BROKER'S OPINION

This represents an excellent opportunity to buy a well-established, highly profitable company with good growth prospects and a reputation for quality and service, which will generate a strong return on investment for the new owner(s).

Guernsey is an affluent island and its residents have high disposable incomes. The Guernsey economy is robust and stable, with a strong finance sector and the business has developed a good client base in a lucrative market niche. It is well known in the local community and attracts a lot of business in the corporate, private and tourist markets.

The new owner will be able to grow its sales by extending the bar's opening hours to encompass lunchtimes and Sundays. It could expand the bar's product portfolio to include a broader food menu and develop further the mobile cocktail bar called Bargo that the owner set up last year to serve private functions at the client's chosen location. Bargo has had an auspicious start and promises to be a profitable offshoot of the main business.


DISCLAIMER

Lakey & Co draw the attention of prospective Purchasers and those acting on behalf of prospective Purchasers to the following:

1. These Particulars do not constitute any part of an offer or a contract.

2. All statements contained in these Particulars are made without responsibility on the part of Lakey & Co or the Seller.

3. None of the statements contained in these Particulars is to be relied on as a statement or representation of fact.

4. Any intending Purchasers must satisfy themselves, by inspection, or otherwise, as to the correctness of each of the statements contained in these Particulars.

5. Seller does not make or give, and neither Lakey & Co, nor any person in our employment, has any authority to make, or give any representation or warranty whatever, in relation to this transaction.

6. We have asked the Seller to provide copies of all documentation (including leases, lease hire and similar rental documentation, guarantees and leases) to the Seller's advocates where they are available. This information will be supplied to you by the Seller's advocates on request. In the meantime, we have relied on information provided by the Seller, and are not responsible for the accuracy of that information. Where information contained in these Particulars is fundamental to the transaction, you should notify us accordingly, and we shall endeavour to obtain documentary confirmation before you proceed further and in any event incur expenditure.

7. While these Particulars are provided in good faith, we are not surveyors or accountants, and we have not tested any fixtures, fittings, equipment, services or other facilities, and cannot say if they are in working order or suitable. You should rely on your own inspection and that of your surveyor. Similarly, you should rely on you own investigation of the accounts, and that of your accountant.

8. Property dimensions are given for guidance only, and you must satisfy yourself as to the accuracy of the measurements.

9. The ownership or use of fixtures, fittings and equipment may be subject to permission from or payment to other parties (e.g. landlords, hire companies, etc.)