Fulham Furniture Manufacturer--UK

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UK Furniture Manufacturer Business Plan

Company Summary

Fulham Furniture Mfr. is a Limited Company specialty manufacturer of high-end office furniture for computer users who care about elegant office space. Our customers are in all levels of business that can afford very high quality office furniture, plus a growing portion of high-end home offices.

2.1 Company Ownership

Fulham Furniture Mfr. is a London, England Limited Company, owned entirely by James and Susan Graham. It was created in 1992. At that time the product line and industrial property rights (including trade marks) were purchased from the heirs to the Fulham Association, which was a furniture company in South West London that had been mismanaged by the heirs of the original founders. Fulham Association was more then happy to sell the business at a very attractive price to James and Susan Graham.

2.2 Company History

Fulham Furniture Mfr. had actually existed since the 1970s as a traditional furniture manufacturer, but its present existence began in 1992 when the furniture line was purchased by James and Susan Graham. The Grahams moved to London from Scotland and purchased the business as part of the move.

Sales took a big jump in 1997, when we reached more effective channels of distribution. The key was winning a place in the Premier Executive office furniture catalogue, which led to winning the interest of the XXX furniture distributors, and display space in several hundred stores.

Profitability and working capital were problems during our recent growth, but we believe we now have costs and cash flow under control.

Past Performance
2003 2004 2005
Sales £127,809 £130,568 £225,790
Gross Margin £58,381 £72,374 £105,245
Gross Margin % 45.68% 55.43% 46.61%
Operating Expenses £54,602 £69,801 £90,125
Collection Period (days) 0 0 36
Inventory Turnover 4.00 4.70 6.00
Balance Sheet
2003 2004 2005
Current Assets
Cash £0 £0 £1,438
Accounts Receivable £0 £0 £27,605
Inventory £0 £0 £10,141
Other Current Assets £0 £0 £2,375
Total Current Assets £0 £0 £41,559
Long-term Assets
Long-term Assets £0 £0 £3,210
Accumulated Depreciation £0 £0 £1,720
Total Long-term Assets £0 £0 £1,490
Total Assets £0 £0 £43,049
Current Liabilities
Accounts Payable £0 £0 £11,191
Current Borrowing £0 £0 £0
Other Current Liabilities (interest free) £0 £0 £1,803
Total Current Liabilities £0 £0 £12,994
Long-term Liabilities £0 £0 £0
Total Liabilities £0 £0 £12,994
Paid-in Capital £0 £0 £4,500
Retained Earnings £0 £0 £13,100
Earnings £0 £0 £12,455
Total Capital £0 £0 £30,055
Total Capital and Liabilities £0 £0 £43,049
Other Inputs
Payment Days 0 0 35
Sales on Credit £0 £0 £140,434
Receivables Turnover 0.00 0.00 5.09

2.3 Company Locations and Facilities

Fulham Furniture Mfr. is located in a single facility across the Thames from Fulham, in Putney where there is more industrial office space and manufacturing space for Fulham Furniture Mfr. The facility includes office and workshop space, access to the local bus route, and Tube stop, and good parking.