Mick Berrill IM

165086 MICK BERRILL MOTORCYCLES INFORMATION MEMORANDUM

Mick Berrill Motorcycles | Information Memorandum

CONTENTS

EXECUTIVE SUMMARY 3

HISTORYAND OWNERSHIP 4

PRODUCTS AND SERVICES 5

CUSTOMERS AND MARKETING 6

LOCATIONAND FACILITIES 7

GROWTH OPPORTUNITIES 8

FINANCIAL INFORMATION 9

GLOSSARY OFTERMS 10

DISCLAIMER 11

2

Mick Berrill Motorcycles | Information Memorandum

EXECUTIVE SUMMARY

OVERVIEW

1.1. Mick Berrill Motorcycles (‘MB’ or ‘the Business’) was a family-run retailer of used motorcycles, clothing, parts and accessories.

1.2. MB ceased trading in April 2023.

1.3. The Business was based in Northamptonshire and offered tyre fitting and an MOT service alongside its range of motorcycles.

HISTORYAND OWNERSHIP

1.4. MB was established in 1967 by proprietor Mick Berrill Senior. 1.5. Mick Berrill is the sole Shareholder of the Business and is selling MB in order to facilitate his retirement plans.

MANAGEMENTAND EMPLOYEES

1.10. MB used to be operated by its workforce of a Shop Assistant, a Mechanic and two part-time Mechanics who were responsible for all day-to-day activities of the Business. 1.11. The previous Manager had over 40 years of experience and had an extensive knowledge of the industry. 1.12. A new owner will need to replace all staff as they have been made redundant.

PRODUCTS AND SERVICES

1.6. The Business retailed used motorcycles, clothing, parts and accessories.

1.7. MB also offered a tyre fitting and MOT service.

CUSTOMERS AND MARKETING

1.8. The Business had hundreds of customers from a range of sectors, including domestic customers and service workers. 1.9. MB operated an e-commerce website where customers could view and purchase the range of available motorcycles, accessories and clothing.

LOCATIONAND FACILITIES

1.13. MB operated from two premises owned by the Shareholder. 1.14. The premises are within a short distance from Northampton town centre.

GROWTH OPPORTUNITIES

1.15. By recruiting additional, experienced staff the Business can increase its volume of work without compromising the quality of its services. 1.16. Additional online marketing, including the use of search engine optimisation (SEO) and pay-per-click (PPC) could help to enhance online conversion rates.

3

Mick Berrill Motorcycles | Information Memorandum

HISTORYAND OWNERSHIP

OVERVIEW

2.1. The Business was established in 1967. The timeline below highlights the key milestones in MB’s history.

2.2. Proprietor Mick Berrill Senior holds 100% of the shares and is offering the Business for sale to facilitate his retirement plans.

2.3. The Manager has offered to provide a handover period to ensure the continued smooth operations of MB during the transition to new ownership.

1967 The Business was established.

1970 – 2010 MB became an official Honda dealership.

1979 The Proprietor’s son joined the Business as a Manager.

2010 – 2023 MB attained a Fox branded clothing franchise.

4

Mick Berrill Motorcycles | Information Memorandum

PRODUCTS AND SERVICES

PRODUCTS AND SERVICES

3.1. Alongside its used motorcycle sales, the Business offered several services that are indicated in the table below:

PRODUCT OR SERVICE

Used motorcycle sales

Motorcycle servicing / repairs

Spares / accessories

Clothing

3.2. With 54 years of trading experience, MB offered a knowledgeable and honest service.

3.3. The repair and MOT services were usually completed within the same day.

3.4. The Business specialised in motocross / off-road clothing and accessories.

5

Mick Berrill Motorcycles | Information Memorandum

CUSTOMERS AND MARKETING

CUSTOMERS

4.1. MB provided its products and services to a number of customers, including service workers, luxury entertainment and domestic.

4.2. The Business benefitted from a wide customer base and a plethora of five-star reviews.

MARKETING

4.3. Having established an excellent reputation, MB achieved many sales through word-of-mouth referrals.

4.4. The Business carried out proactive marketing campaigns such as online advertising and also received a number of enquiries through its website. 4.5. The e-commerce website allowed potential customers to view and purchase the range of available motorcycles, clothing and accessories. It can be viewed at the following address:

www.mickberrillmc.co.uk

“Supplied and fitted new tyres to my new wheels. Great service, good price and no scratches. Top team.” – Customer testimonial

6

Mick Berrill Motorcycles | Information Memorandum

LOCATIONAND FACILITIES

OVERVIEW

5.1. MB operated from two freehold premises, one of which was used for sales and repairs, and the other for MOTs and storage.

5.2. The addresses are as follows:

1 – 3 Henry Street Northampton NN1 4JD 14 – 16 Henry Street Northampton NN1 4JE

5.3. The premises are in a prime location in close proximity to Northampton town centre, providing excellent transport access.

“I got my first bike from them and I couldn’t be happier. The staff are absolutely brilliant, they are passionate about their job, really helpful and friendly.” – Customer testimonial

7

Mick Berrill Motorcycles | Information Memorandum

GROWTH OPPORTUNITIES

OVERVIEW

MARKETING

6.1. Having established an excellent reputation within its sector and built strong relationships with its customers, MB is well positioned to pursue ongoing growth following reinstating trading activities.

6.4. By utilising press advertising and attending trade shows and events, the Business could present its quality products and services to potential clients in a range of sectors.

6.5. MB may also benefit from employing a Business

Development Representative to highlight new avenues the Company can take. 6.6. Additional online marketing, including the use of SEO and PPC could enable MB to reach customers across a more diverse range of sectors and enhance online conversion rates.

BUSINESS DEVELOPMENT

6.2. The recruitment of additional, experienced staff would enable the Business to effectively manage a significantly increased volume of work, without compromising the quality of its service. 6.3. By extending its opening hours, MB could be more available for potential customers outside of the Northamptonshire area.

8

Mick Berrill Motorcycles | Information Memorandum

FINANCIAL INFORMATION

OVERVIEW

1.1. The table below outlines the Business’s annual Profit and Loss accounts.

YE20 £

YE21 £

YE22 £

PROFIT AND LOSS (£)

Turnover

494,541

450,655

544,261

Cost of Sales

(283,734)

(246,968)

(350,968)

Gross Profit

210,807

203,687

193,293

Gross Profit Margin

43%

45%

36%

Administrative Expenses

(152,902)

(135,588)

(130,915)

EBIT

57,905

68,099

62,378

Addbacks

Employer's National Insurance

5,664

3,067

3,568

Adjusted EBITDA

63,569

71,166

65,946

1.1. The table below outlines the Business’s yearly Balance Sheet.

YE20 £

YE21 £

YE22 £

BALANCE SHEET (£)

Fixed Assets

Tangible Assets

60,288

60,288

60,288

Current Assets

Stocks

45,000

10,000

2,000

Debtors

29,711

Cash at Bank

10,000

61,854

86,151

Creditors: Amounts falling due within one year

(17,601)

(17,387)

(5,689)

Net Current Assets

67,110

54,467

82,462

Net Assets

127,398

114,755

142,750

Capital and Reserves

Shareholder Funds

127,398

114,755

142,750

NB: Addbacks entail one-off costs that hold minimal relevance to the Business’s performance, as well as costs that an acquirer will not necessarily incur.

9

Mick Berrill Motorcycles | Information Memorandum

GLOSSARY OFTERMS

ABBREVIATION

DEFINITION

MB / the Business

Mick Berrill Motorcycles

PPC

Pay-per-click

SEO

Search engine optimisation

YE

Year ending 31 st March

10

Mick Berrill Motorcycles | Information Memorandum

DISCLAIMER

This Information Memorandum (“the Document”) is provided solely for use by the recipients in considering their interest in acquiring the Company, either wholly or in part.

• Persons having professional experience in matters relating to investments as described in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Financial Promotion Order”);

This Document is not a prospectus and does not constitute or form any part of any offer or invitation to subscribe for, underwrite or purchase securities, nor shall it or any part of it form the basis or be relied upon in any way in connection with any contract relating to any securities.

• High net worth companies, unincorporated associates, partnerships or trusts or their respective directors, officers or employees as described in Article 49(2) of the Financial Promotion Order;

• High net worth companies, as defined in Article 49(2); and Certified sophisticated investors as defined in Article 50(1).

The sole purpose of this Document is to assist the recipient in deciding whether it wishes to proceed with a further investigation of the Company. It is not intended to form the basis of any investment decision or decision to purchase the Company.

The content of this document has not been approved by an authorised person and that approval is, unless this exemption or any other exemption applies, required by Section 21 FSMA. Recipients should note that reliance on this document for the purpose of engaging in any investment activity may expose them to a significant risk of losing all sums invested or of incurring additional liability. If recipients are in any doubt as to the action they should take, they should consult an advisor authorised under FSMA specialising in advising on investments of the kind set out in this document. The distribution of this document in certain jurisdictions may be restricted by law and therefore persons in possession of this document should inform themselves about and observe any such restrictions. Any such distribution could result in a violation of the law of such jurisdictions. No shares or other securities of the Company have been or will be registered or otherwise qualified for sale or resale under Federal or State laws in the United States of America or Canada. Neither the US Securities and Exchange Commission nor the Securities Commission of any State of the United States has approved or disapproved the shares of the Company or passed on the accuracy or adequacy of this Document. Each recipient doing business in or organised under the laws of the United States of America or in areas subject to its jurisdiction represents that it is an institutional investor, expressing an interest for its own account and agreed not to purchase, distribute or sell any of the Company¹s securities or any interest therein except in compliance with the above laws. The Shareholders expressly reserves the right to alter or terminate the process and to accept or reject any preliminary or final offers at any time, in either case, without giving reasons therefore. In furnishing the Document, the shareholders undertake no obligation to provide any additional information or to update this Document or to correct any inaccuracies in this Document which may become apparent.

The information contained in this Document is selective and is subject to updating, expansion, revision and amendment. It does not purport to contain all the information that recipients may require. No obligation is accepted to provide recipients with access to any additional information or to correct any inaccuracies which may become apparent. Recipients should conduct their own investigation and analysis of the Company and of the information contained in this Document, and are advised to seek their own professional advice on the legal, financial, taxation and other consequences of providing funding to the Company. This Document includes certain statements, estimates and projections with respect to the anticipated future performance of the Company and as to the market for the Company’s products. Such statements, estimates and projections reflect various assumptions made by the Management of the Company concerning anticipated results, which assumptions may or may not prove to be correct. No representation is made as to the accuracy, reasonableness or completeness of such statements, estimates and projections. Knightsbridge Business Sales Limited (“KBS”) has not independently verified any of the information contained or opinions expressed herein. Neither the Company, nor KBS, nor affiliated partnerships or bodies corporate, nor the directors, shareholders, managers, partners, employees or agents of any of them, makes any representation or warranty, express or implied, as to the accuracy, reasonableness or completeness of the information contained in the Document. All such parties and entities expressly disclaim any and all liability for, or based on or relating to any such information contained in, or errors in or omissions from, this Document or based on or relating to the recipients’ use of the Document. This Document is confidential being for use only by the persons to whom it is issued and who have signed the required form of confidentiality agreement. Accordingly, the contents of this Document, including the Personal Data (as defined in UK data protection legislation, being the Data Protection Act 2018, General Data Protection Regulation 2016/679, the Privacy and Electronic Communication (EC Direction Regulations 2003) and any replacement legislation coming into force from time to time, together with any codes of practice or other guidance issued by any competent regulatory authority) herein, and any other information, Personal Data or opinions subsequently supplied or given in connection with the proposed sale will constitute information pertaining to the Company (“Confidential Information”) and may not be published, reproduced, copied or disclosed to any person other than the professional advisers to the recipient of this Document having a need to know and who are aware that it is confidential, nor used for any purpose other than in connection with the proposed acquisition. Notwithstanding any other provision or obligation in this Document, the signed confidentiality agreement shall apply in all respects to the Confidential Information and in the event of a conflict between the signed confidentiality agreement and this Legal Note the confidentiality agreement shall prevail. In the event that the recipient does not continue with his interest in the Company, this Document must be returned to KBS. The recipient will keep the Confidential Information supplied or given to it or its agents or advisers in connection with the proposed sale safe and secure so as to prevent any unauthorised person having access to it, and the recipient agrees that the information is proprietary to the Company and it has no rights to it except as set out in this notice. Neither the receipt of this Document by any person nor any information contained in it or supplied with it or subsequently communicated to any person in connection with the proposed funding of the Company constitutes, or is to be taken as constituting, the giving of investment advice by KBS to any such person. Recipients of this Document shall not be deemed to be clients of KBS and KBS shall accordingly not be responsible to such recipients for providing the protections afforded to clients of KBS or for providing advice in relation to any transaction or arrangement referred to herein. Each such person should make its own independent assessment of the merits or otherwise of acquiring the Company and should take its own professional advice.

In no circumstances may recipients or their officers, employees, agents and professional advisers make contact with the Management, employees, clients, agents or suppliers of the Company until permission to do so is given in writing by KBS.

CONTACT DETAILS

For further information regarding this opportunity, or to arrange a meeting, please contact a member of our team below:

KNIGHTSBRIDGE TEAM

Phone: 01204 555 053

Email: paige.brindle@knightsbridgeplc.com

(Strictly by appointment through the Offices of Knightsbridge Commercial)

This document has been issued on the basis that it falls in the exemptions to Section 21 of the Financial Services Markets Act2000 (“FSMA”) set out below. It is directed only at:

11

KBS House 5 Springfield Court Summerfield Road Bolton Greater Manchester BL3 2NT

T: 01204 555 084 E: buy@knightsbridgeplc.com www.knightsbridgeplc.com