The whole company!

There is a full page advert in Autocar magazine this week for Robin Hood. The whole company is for sale for £1.5m. Apparently the owner is 60 and wants to retire.

Maybe we should club together!

its a misprint

I have $1.50 all on my own.




atb

steve



PS - seriously - just think how long it takes to get your money back before you make any clear profit.


A hoodie kit starts at what, 1300 quid?

Lets say 400 at most is profit.

thats 3,750 kits to sell!!!!!!!


thats gotta take some time......






[Edited on 27/4/04 by stephen_gusterson]

Actually if you made an investment of that sort you would probably want an annual return of 10% so £150,000 a year.

So if you were making £400 nett on each kit you would need to sell some 375 each year, which is about there number of kits isn't it?

so, what your basically saying, is that you should expect to take at least 10 years before you get ANYTHING at all back for your 1.5m quid?

And this is in a market where its totally saturated with people trying to sell their own 7 kit! Look at all the MK copyists emerging - and it can be argued that MK are a copyist themselves, as are RH.

If you bought bonds, or similar investments, you would get a 7% return, compounded each and every year over that 10 years.

And you wouldnt have to beother with the hassel of selling anything, attending shows, dealing with angry customers, etc.

at 7% you would get 100k a year doing nowt from just the interest on your 1.5m.

If I had the dosh, it would stay put!


atb

steve

[Edited on 28/4/04 by stephen_gusterson]

True Steve, but with bonds there is no chance to improve on that 7% (if you can get that).

Most businessmen (or women i guess!) would see the opportunity to invest £1.5m, improve the product & thus increase sales and/or profitability, make at least the £150k per year for a few years and then sell the company on again (or float it) for say £2m.

It's all about perceived value & opportunitiy to improve the business.

But I'm with you - if I had the £1.5m, there are certainly easier ways to make a decent return than by investing in a competitive market such as kit car "replica/copyist" manufacturing!!!

if i had 1.5m id buy a shopping center or an industrial estate. or a hotel. muchos good easy money in that business!

nah, a carwash....

the one i worked at cost £300k all in, for land and equipment etc.

It did 280, 000 washed in 1st year, at an average of £4.13. Thats over 1.1 mil

Ok wages, overheads and consumables, but for a potential one man show, made 700k profit at least.

Thats what I would do if I ever won the lottery. Got it all planned.

now all I have to do is start playing the twatting game!

Mark

The advert says that the price includes 3 freehold factories of approx 40000 sq ft.

Turnover for year ended 03/03 was £1.17 million. Net profit £330,000 for that period. Actually a good return, and probably makes the price reasonable. If you have £1.5 million to start with!

If I had a million and a half lying around I think I'd be building meself a nice garage to play in (all day! )

Sod working for a living.

ATB

Simon