PROJECT OUTDOORS - OPPORTUNITY TO PURCHASE COMPANY OPERATING AS AN E-COMMERCE RETAILER OF OUTDOOR CLOTHING

Key Investment Highlights

Started in 2006 the Company traded profitability for a prolonged period, trading via its website www.alloutdoor.co.uk. The Company is an e-commerce retailer of outdoor clothing and products, trading solely in the B2C market.

The website has benefitted from significant spend over the years, ensuring that it is attractive and streamlined in its process. In time and alongside sales generated through the website, the Company has taken advantage of the e-commerce explosion, also now trading via other platforms to include Amazon and ebay.

During the Company’s peak it generated annual turnover in excess of £4m.

The Company’s charge holder has recently appointed FRP Advisory to act in the capacity of Administrators, who are currently trading the business from its fulfilment centre in Rotherham and whilst a purchaser is sought for the business and assets, to include any remaining stock and all Intellectual Property.

With the charge holder involvement, costs have been streamlined, to include exiting a former trading premises in Borehamwood, owned by the former Director and the reduction in staffing levels, some of which were connected to the former director.

As a result, the Company benefits from limited trading costs, to include its contract with the fulfilment centre, which is able to be negotiated, as is the use of the charge holders staff for dispatching stock once orders are placed.

Opportunity

The Administrators are seeking offers to acquire the business and assets. Access to a data room will be granted subject to a Non-Disclosure Agreement being signed. If parties remain interested, then more detailed discussions can be held with management and the charge holder.

Process and timeline

FRP are inviting expressions of interest and best and final offers by 16.00pm on Monday 4 April, 2022 with completion of sale by 17:30pm Friday 8 April, 2022. The Company and FRP reserve the right to vary this timetable.

All correspondence in relation to this matter should be directed to FRP using the contact details provided at the end of this document.

Financial position

All Outdoor Limited Profit and Loss Account – Year end April 2022

*note that Administrative costs following a review by the Administrator are believed to be able to be reduced by at least some £200k with turnover also expected to be able to be increased by some £2m

Historic financial performance

The Company achieved revenues of £1.2m for the 12 month period ending April 2022, based on MI provided by the charge holder. This includes a period of time where the Company effectively mothballed the e-commerce platforms, whilst seeking advice. Historic turnover at its peak sits between £2-4m.

It is the Administrators belief that significant administrative costs can be stripped away from future trading and the Administrators will be happy to discuss this with interested parties, as part of any due diligence. Similarly the Company has been trading at a reduced % of its historical turnover of late which, is believed to be rectifiable.

The Board is not expecting to be looking to have active involvement in the business going forward, however, the existing charge holder is happy to discuss the available infrastructure held at the fulfilment centre, as to ensure a smooth handover to any potential purchaser.

Asset position

The Company has assets to include but not limited to stock, domain names, Goodwill and customer database.

The Company does not carry the typical costs of a leasehold premises or any employees.

Contact details

If you would like further information on this opportunity please contact FRP using the details provided below.

All communication on this opportunity should be conducted through FRP.

You will be required to agree to a Non Disclosure Agreement in order to receive access to a data room and further information about the sale process.

Management meetings can be arranged once the Non Disclosure Agreement has been signed and initial discussions have been held.

Gary Harper
Head of North West Valuations
John Pye Business & Property
07958 640 042
Gary.Harper@johnpye.co.uk

Marco Piacquadio
Partner
FRP Milton Keynes
07572 293 527
Marco.Piacquadio@frpadvisory.com

Nayem Noor

FRP Milton Keynes
01908 106 330
Nayem.Noor@frpadvisory.com

Disclaimer: The purpose of this document is to assist the recipient assess whether this business is one that may be of interest as a potential acquisition. It is not intended to form the basis of an investment decision and does not constitute a detailed review of the business. The recipient must carry out its own independent investigation and rely on its own assessment of the business. We recommend that independent professional advice is sought by the recipient. The information in this document has not been verified by FRP Advisory LLP, which do not give nor have any authority to give any representation or warranty (express or implied) as to its accuracy or completeness.