Status: Completed
Tenure: Leasehold
Leasehold Rent: £50,500 per annum
Turnover: £575,000
Classic Pilates Business in Two London LocationClassic Pilates Business in Two London LocationClassic Pilates Business in Two London Location
£450,000 + SAV

Classic Pilates Business in Two London Location

Completed
  • Reference: 13275 J
  • Location: Clapham, Lambeth
Hilton Smythe welcomes to the market Pepilates Limited. The business was first established in Clapham in 2009 by our clients. The success of the studio led to our clients setting up another studio in Wimbledon in 2015. The owners are now looking to sell the business, due to their desire to relocate to Yorkshire.

The business offers Classical Pilates in the form of One to One and group Reformer sessions from its two locations in Clapham and Wimbledon as well as Mat classes in its Clapham branch. Pilates was developed over 60 years ago, by the German born Joseph Pilates and is one of the fastest growing industries in the UK.

Classes available include:
One to One classes on the equipment or Mat
Group Reformer classes
Pregnancy Classes
Duet Classes

Taster sessions are available to those that are new to Pilates. All classes are run by fully qualified instructors, many of whom have been with the business since 2009.

The business is currently generating a turnover of around £575,000, with a margin of around 20%. This is an outstanding business that has proven to be extremely popular and has a strong client base of repeat customers. The second location in Wimbledon was opened in late 2015 and is already turning a profit but has lots of room for further growth. We also feel that the purchaser could look to grow the company by introducing additional locations.

Pepilates Ltd has been run to a very high standard and the management roles have written procedures. The business website (www.pepilates.co.uk) It is easy to use and professional. The site is filled with information, prices of classes and videos. The business also has its own Facebook page with over 700 followers and excellent reviews across a number of websites including Google. We are advised that very little advertising has been done for the past couple of years as the business website is top of the organic rankings on google and lots of new clients come via word of mouth however we feel that the purchaser could increase revenue and profit with a strong marketing campaign.

The business has a database of over 5,000 clients with 450 active customers at any one time. Clapham has around 275 clients per week and the newly opened Wimbledon branch has around 65. The businesses varied client base includes celebrities, and lots of high earning city workers. Clients pay either by purchasing a pack of classes upfront or on a pay monthly membership option.

The business also has a great reputation within the Pilates industry for providing workshops taught by some of the most respected teachers in the industry. Whilst also generating revenue, this means that there is never any shortage of instructors who want to work for the business.

This is a fantastic Leasehold opportunity that is not to be missed. Hilton Smythe highly advise early viewing to take in the full potential of the trade.

TENURE

We are advised the business is being sold as a Leasehold opportunity.

Clapham Studio
Original lease length: 15 years
Remaining lease length: 15 years as of July 2016 with 1 year rent free running to July 2017.
Rent: £31,000 per annum

Wimbledon Studio
Original lease length: 5 years
Remaining lease length: 4 years as of 23rd June 2016.
Rent: £19,500 per annum

HOURS

The business opening hours: -

Monday - Friday: 8am - 9pm
Saturday: 8am - 6pm
Sunday: 9am - 3pm

STAFF

The business is run by a team of reception staff who work 7 days a week from the Clapham location and are overseen by our client. The business has 19 self-employed Pilates instructors who work across the two locations.

FINANCIAL PROFILE

The business is currently generating a turnover in the region of £575,000 (inc VAT) in 2016/17 with £120,000 net profit expected.

The 2014/15 accounts show a turnover of £460,000 (inc VAT) and net profit of £103,000
The 2015/16 accounts are currently being produced.
Pepilates Limited has two separate locations in London.

Clapham Studio
The first studio is located in Clapham just minutes from the high street and Clapham Common tube station. Clapham is a short drive away from Balham, Battersea and Brixton. This is an excellent residential location which is surrounded by £1m+ houses and rich city workers who sit at desks all day and are desperately in need of the restorative effects of Pilates. Close by are the A3, A24 and A23 these are arterial roads that run directly into Central London.

Due to the close proximity to Central London, the area further benefits from great public transport. There is a train station two minutes away and there are several bus stops close by.

Wimbledon Studio
The second studio is located on a retail parade in a bustling shopping area of Wimbledon. This is a great location that receives a generous amount of footfall and passing trade. The property is 5 minutes away from the centre of Wimbledon, Merton, Colliers Wood and Morden are all close by.

Again, this property is close to the A24 and A3 and 2 minutes from Wimbledon South tube. This studio is approximately 4 miles away from the Clapham studio.
Pepilates Ltd boasts two modern premises that have been completely refurbished. Between the two properties there is approximately £60,000 worth of equipment which is included in the sale and £12,000 of rent deposits.

The properties briefly comprise: -

Clapham Studio
The property is a 1500 sq ft modern, recently renovated space. On entry is the main workout space with high ceilings and beamed features. There is also a separate room for mat classes, plus an office and two toilets, one of which is for disabled users. There are stairs that lead up to a mezzanine floor, this has a comfortable seating area and changing rooms.

The property is well-decorated with bright white walls and solid wood flooring. There are large windows and plenty of lighting.

Wimbledon Studio
The business is set on a busy retail parade. This property is well-signed and inviting. There are large windows across the front of the store which allows for a bright interior. On entrance is the service counter and further through is the studio equipment. From this area are double doors that lead to the rear yard. There is also another room with more equipment, plus a custom toilet and staff room to the rear of the premises.

The property is completed with white walls and solid bamboo flooring.

Equipment list can be provided on request.