Established Producer & Supplier of Primary School Teaching Products

UK
Client Code: BM020794
Turnover (Draft): £368,000
EBITDA (Draft): £184,000

Established producer and supplier of primary classroom products, specialising in the provision of printed resources. The company offers one of the largest ranges of numeracy resources in the UK, but it also supplies a selection of literacy resources and a range of dry wipe whiteboards. In addition to its own range of printed products, the company also supplies a select range of complementary products sourced from European providers. With a national reach and valuable footholds in the Republic of Ireland and Scotland, the company’s target market is predominantly primary schools; however, it also serves a more diverse range of clients, ranging from large trade distributors to individual parents.

Key Aspects
  • Efficient and profitable business model, returning strong gross profit levels (c75% of turnover, EBITDA c50% of turnover) year-on-year and performing well amidst recession and the recent global pandemic.
  • Focus on high-margin products, yielding an average GP margin of 1045% for proprietary products.
  • Enormous untapped potential, with the company having prospered for more than two decades based largely on word-of-mouth referrals.
  • Differentiates itself from competitors by being both a producer and supplier, and by specialising in primary numeracy.
  • Several long-term customer contracts in place, with no one client representing more than 14% of sales, mitigating the risks associated with overreliance.
  • Exceptional attention to detail is key to the brand and all product development is informed by teaching professionals and changing curriculum requirements.
  • Highly scalable business model, the company’s centrally located premises can accommodate significant operational increases.
  • Operates in a secure market sector and maintains high levels of cashflow and zero bad debts.
Opportunities
  • Marketing - the company has been built almost entirely on word-of-mouth recommendations, with just nominal marketing activity to date. As such, there is very significant growth potential which could be driven by new custom generated via advertising, direct mail, search engine optimisation, social media marketing, and PR, as well as unexplored opportunities across the company's existing client base which could be targeted by email campaigns and promotions. Over the past five years, the company has supplied c8% of UK primary schools, with c20,000 schools currently untapped.
  • Increase trade business - enormous potential to grow revenue streams with both new and existing trade clients.
  • Other potential UK/EIRE market sectors - whilst primary schools are the company's target market, its existing product range has proved popular with both Early Years and Special Education Needs (SEN). There is a significant opportunity to further meet and realise this demand through further product development and marketing, with additional expansion opportunities emerging within secondary education and adult literacy/numeracy.
  • Diversify client base - the potential market is vast, with home-tutoring becoming more commonplace as a result of Covid-19; therefore, the company could capitalise on growing demand for home schooling resources via Amazon and other online marketplaces, as well as through a separate ecommerce site tailored for this market sector.
  • Expand product range - opportunity to enhance the company's existing product range by supplying materials for History, Geography, Languages, Music, PSHE, and Sciences.
  • International markets - significant scope to market in English-speaking countries, such as the USA, Canada, UAE, and Australia. The company also represents an ideal opportunity for an acquirer operating in a different region, or overseas, to expand its operating footprint and grow its market share.