Shock.... Speedframe Lincoln up for sale.

[ComeOnYouReds!]

Wanting 250,000 plus stock at value. Package has to include all the current staff.
Come on then all you wealthy framers in yer little garages... now's the time to think big !!

[prospero]

Blimey.

[Not your average framer]

I may be wrong, but isn't Speedframe a fast turnaround bargain price operation. If that's true, being a the bottom end of the market, with a business model that relies upon volume might not make for such an easy life in the current recession. Just a thought!

[Graysalchemy]

Which recession are we in Mark!!!!!

A recession is a negative economic growth for two consecutive quarters and I don't think we have had that yet.

Talk like that is what got us into the last one, all that BBC negativity.

[Not your average framer]

Hi Allister,

You are no doubt in a economically better part of the country to me. Rural Devon hasn't yet recovered from when it all when down hill in 2008 and now people are hanging onto their money over-reacting to all this negative talk about brexit.

[Mark Thornton]

I may be wrong, but isn't Speedframe a fast turnaround bargain price operation

You are very very wrong, Speedframe Lincoln is the complete opposite and produces bespoke frames to a very high quality.

Mark

[Graysalchemy]

That might be the case Mark but we are not in a recession, and haven't been for quite a while.

You are just as guilty of talking the economy down as all your potential customers in rural devon. If you watch the news the economy isn't to bad at the moment all things considering, it actually grew by 0.5% post brexit better than the predictions.

[Not your average framer]

Speedframe Lincoln is the complete opposite and produces bespoke frames to a very high quality. Mark

Thank you for correcting me. At times we do see older items brought in for re-framing in some rather naff aluminium frames with labels from company called "Speedframe", or "Speedframes" on the back. I was led to understood that this was a chain of discount framing shops at one time.

I also got some packs of different cut sizes of acrylic glazing that came from buying the contents of a framing shop in Totnes which also are labelled with the name "Speedframe". Was there also a supplier at one time called Speedframe?

[IFGL]

Are you thinking of fast frame mark?

[Trinity]

£250k+ stock is a think big reason to stay in the garage. Another way of cracking these types of nut is to pay an element up front and so much / annum out of profits, it shares the risk. Goldmines can soon be undermined.

[Jamesnkr]

They had stock of 75k, at the end of last year. That's a heck of a lot of stock. (Isn't it?) Presumably they haven't more than two months' stock at hand, and if their supplier payment terms are 1 month, creditors in respect of stock are 37k.

Hard to work out profitability from the accounts, but they have year end creditors of £56k. Given the above assumption that suggests £19k for corporation tax creditors and so 95k annual profits before tax. Add in 8k salary for each of the two director-shareholders, and quite possibly pension contributions as well.

So on this estimate they're valuing goodwill at 2.5 times annual profits. Any views? (Actually a bit less as they do have other fixed assests.)

Anyway, who can come up with £325k?