AGRUMI NURSERY

SWAY ROAD TIPTOE, LYMINGTON

HAMPSHIRE SO41 6FR

FREEHOLD FOR SALE

Agrumi Nursery is a an attractive and interesting business which imports specialist plants mainly from Italy and adds a lot of value by potting on and having a specialist topiary profit centre which

sells to Disneyland Paris, leisure attractions and large garden centres.

The business can come either with or without an untied four bedroom house. There is also a building that has been converted into a cottage where retrospective planning consent is hopefully

going to be obtained.

Bartholomew House, 38 London Road, Newbury, Berkshire, RG14 1JX Fax: (01635) 551440 e-mail: sales@quintons.co.uk www.quintonedwards.co.uk

LOCATION - Agrumi Nursery is located within the New Forest area, north-west of Lymington and north-east of Christchurch and New Milton with Sway, Brockenhurst, Lyndhurst and Junction 1 of the M27 to the north. SITUATION - Agrumi Nursery is situated on the south side of Arne, Woodbridge Road the B3055, generally in open countryside but within an affluent area. THE SITE - The site is flat benefitting from an 80 metre frontage to the road and extends to 2.014 hectares (4.976 acres) and a site plan is shown with the site boundaries edged red. The front part of the site which comprises Meadow Farm and adjacent land is edged blue and benefits from a 71 metre frontage to the road and extends to 0.235 hectares (0.581 acres). This leaves the remainder of the nursery frontage of only 9 metres and a site area of 1.779 hectares (4.395 acres). DESCRIPTION - Access is off the road through wooden gates on a drive – on the right is an an orchard/vegetable area and the house and on the left is a landscape area and

then a hardstanding yard from which there is access through to the nursery and in one corner there is a large above ground metal reservoir. The road continues past the yard, past the vegetable area on the right and a block building with pitched plastic coated profile metal clad roof used as packing area for the online business, staff room and workshop into a large gravel yard. Straight ahead is an attractive barn, glazed with wooden cladding which has a reception/sales room with kitchen, large office with boardroom on the ground floor plus two offices with a WC on the First Floor. To the left with double doors to the front is a workshop used for the making of topiary frames with a urinal and wash area on the ground floor and with a substantial metal mezzanine with a shower room and WC thereon.

To the bottom of the yard is the cottage, a block building under pitched plastic coated profile metal clad roof which comprises a double bedroom and living room with shower room, WC and wash-hand basin linked to which is a large metal framed glass extension used as a kitchen and dining room. Close by is an L-shaped block stable and then there is access into the nursery area which comprises large areas of gravel and Mypex, irrigated standing out areas with hard standing road ways, one large wide polytunnel and four normal polytunnels with the road running around to the back area of the site which comprises a large open yard, further large irrigated plant standing out areas, a number of metal storage containers and a canvas potting area. To the very rear of the site is an overgrown area which can get wet and will need to be land filled to be used efficiently. The main residential dwelling which is also accessed from the nursery has separate access off the road and comprises a two storey brick building under pitched tiled roofs and garden. Access is in through the front door in to a hall with stairs up, on the left is the living room with wood burning stove and on the right a study/snug, then a cloakroom. Back to the left is a dining room which also benefits from double doors from the living room and at the rear is a fully fitted large kitchen with one and a half sinks. Off the kitchen is a utility room and a rear lobby area and back door and also from the kitchen are doors to a concrete base which will house an orangery. The first floor comprises four double bedrooms with two bathrooms, one of which is en-suite.

ACCOMMODATION - We have measured the premises in accordance with the Code of Measuring Practice published by The Royal Institution of Chartered Surveyors and the floor areas are as follows measured gross internal. The structures are numbered on the line drawing shown. A. Nursery Area 1. Polytunnel 217.9 sq.m. 2,345 sq.ft. 2. Polytunnel 150.0 sq.m. 1,615 sq.ft. 3. Polytunnel 143.0 sq.m. 1,539 sq.ft. 4. Polytunnel 120.4 sq.m. 1,296 sq.ft. 5. Polytunnel 120.4 sq.m. 1,296 sq.ft. 6. Canvass Potting Area 48.6 sq.m. 523 sq.ft. 7. Metal Store 5.3 sq.m. 57 sq.ft. 8. Canvass Store 17.5 sq.m. 188 sq.ft. 9. Stable/shed 25.1 sq.m. 270 sq.ft. 9a. Covered Shelter 14.3 sq.m. 154 sq.ft. 10. Stable/shed 24.2 sq.m. 260 sq.ft. 11a. Block Cottage 45.4 sq.m. 489 sq.ft. 11b. Glass Cottage 26.0 sq.m. 280 sq.ft. 11c. Block Cottage 7.0 sq.m. 75 sq.ft. Total Area of Cottage 78.4 sq.m. 844 sq.ft. 12. Warehouse/Staff 99.9 sq.m. 1,076 sq.ft. 13. Barn – Ground Floor 13a. Entrance 10.8 sq.m. 116 sq.ft. 13b. Office/Shop/Kitchen 14.0 sq.m. 151 sq.ft. 13c. Boardroom 29.1 sq.m. 313 sq.ft. 13d. Workshop 43.9 sq.m. 473 sq.ft. First Floor 13e. Offices 43.4 sq.m. 467 sq.ft. 13f. Mezzanine 12.1 sq.m. 130 sq.ft. 13g. Shower/WC 2.9 sq.m. 31 sq.ft. Total Ground Floor 97.8 sq.m. 1,053 sq.ft. Total First Floor 58.4 sq.m. 628 sq.ft. Total 156.2 sq.m. 1,681 sq.ft. Meadow Farm – Ground Floor 1. Entrance Porch 1.0 x 1.6 m 1.6 sq.m. 2. Hall 3.6 x 1.8 m 6.5 sq.m. 3. Living Room 3.6 x 6.3 m 22.7 sq.m. 4. Dining Room 3.4 x 2.8 m 9.0 sq.m. 5. Study/Snug 3.6 x 3.3 m 11.9 sq.m. 6. Cloakroom 1.8 x 0.9 m 1.6 sq.m. 7. Kitchen 5.5 x 3.1 m

plus 2.2 x 1.8 m 26.0 sq.m.

8. Utility Room 2.0 x 1.8 m 3.6 sq.m. 9. Back Rear Lobby 4.1 x 1.8 m 7.4 sq.m. 10. Porch 2.0 x 2.0 m 4.0 sq.m. 11. Base for Orangery 4.7 x 6.0 m 28.2 sq.m. Meadow Farm - First Floor 12. Double Bedroom 3.3 x 3.6 m 11.9 sq.m. 12a. Extension 2.7 x 3.6 m 9.7 sq.m. 13. Double Bedroom 3.2 x 2.8 m 9.0 sq.m. 14. Double Bedroom 3.3 x 3.6 m 11.9 sq.m. 15. Family Bathroom 2.1 x 2.2 m 4.4 sq.m. 16. Master Bedroom 5.5 x 3.1 m

plus 5.0 x 0.7 m 20.6 sq.m.

17. En-suite Shower Room 2.2 x 1.7 m 3.7 sq.m.

SERVICES - We are informed the premises are connected to mains electricity three phase and to the mains water supplies but at the present time the nursery’s mains water comes via the house. We understand that there is a borehole hardly used and that the adjacent stream is used as water extraction with the nursery benefitting from a large above ground metal reservoir. Heating to the house is mains gas and where heating is required in other areas of the nursery it is either electric or liquid propane gas. The WC accommodation for all is one shared septic tank. The entire nursery is irrigated with three Hunter systems and a fertigation unit. RATING ASSESSMENT - The nursery is unassessed for rates as a horticultural holding except for the workshop. Workshop We have been informed by the Rating Department of New Forest District Council that the premises are assessed for rates as follows: Description in the List Workshop and Premises Rateable Value £ 5,600.00 Commercial Rate in the £ 48.0 pence (2018/2019) (below £51,000) Rates Payable £ 2,688.00 (2018/2019) excluding transitional relief TOWN PLANNING - We have not had sight of any town planning consents for the nursery but understand that it does not benefit from any form of retail consent. However, plants grown on site can be sold to the public via the farm gate along with a limited amount of garden sundries that are required by a purchaser of a plant to look after that plant. We are informed that the cottage does not currently benefit from planning consent but that as it was constructed from an existing horticultural/agricultural building it should be able to obtain planning consent via permitted development rights and we are informed that an application for retrospective consent will be submitted shortly. We are informed that Meadow Farm is an untied residential property.

THE BUSINESS - Agrumi was officially started in 2005 but it only really took off when it moved to the subject site in 2011 which at that time basically comprised Meadow Farm House and paddocks. The nursery imports specialist plants mainly from Italy and adds value to a lot of them by potting on and also buys in a range of plants, all of which are sold wholesale to garden designers, landscapers, developers, nurseries and to some garden centres. We have had sight of a monthly management account sheet, and in 2018 Internet and Topiary provided 20.0% of the turnover, retail/wholesalers 29.0%, landscape 41.0%, other 9.0%. In addition to wholesale sales, there are certain areas that set Agrumi apart from other businesses. The first is their specialist topiary which has been sold to Disneyland Paris, Paultons Park Peppa Pig and to certain large garden centres such as Burford. Popular Plants which is an online business and drop shippers which dispatches for other online businesses – there is also groundwork/landscaping where they install large specimen plants either sold by themselves or for other companies. We have had sight of Annual Report and Unaudited Financial Statements for Agrumi Limited for the years ending 31st December 2014-2017 plus Management Accounts for 2018 and the relevant information is as follows: Agrumi Nursery

2014 2015 2016 2017 2018 MAN

Turnover £650,482 £652,041 £747,667 £704,914 £990,625 % Increase 17.8% 0.2% 14.7% - 40.5% Gross Margin 47.3% 49.2% 59.9% 56.2% 55.3% Operating Profit*

£54,405 £85,952 £63,396 £38,280 £107,514

Operating Profit %

8.4% 13.2% 8.5% 5.4% 10.9%

Net Profit £9,644 £16,938 (£1,833) (£21,033) £36,033 Net Profit % 1.5% 2.6% - - 3.6% Wages 16.7% 17.7% 23.3% 29.0% 24.7% Marketing 2.2% 2.2% 1.6% 1.5% 0.7% Popular Plants Limited Popular Plants, the online business, is a separate limited company and we have had sight of Unaudited Financial Statements for the years ending 31st December 2014-2017 and this information is set out below:

2014 2015 2016 2017 2018 Turnover £84,422 £99,913 £112,306 £102,925 £84,876 % Increase - 18.3% 12.4% - - Gross Margin 42.1% 38.1% 46.5% 46.1% 45.1% Operating Profit*

£13,041 £21,726 (£4,833) £4,146 (£415)

Operating Profit %

15.4% 11.5% - 3.7% -

Net Profit £11,489 £10,223 (£5,217) £3,073 (1,477) Net Profit % 13.6% 10.2% - 2.7% - Wages - - - - - Marketing - - 0.4% 0.7% 0.10%

* The definition of operating profit in this instance is trading profit before tax, director’s costs, interest charges, depreciation and other extraordinary costs. This gives an indication of the revenue stream that a potential purchaser can hope to achieve prior to his own expenses and the finance required making the purchase. Agrumi Nursery Turnover has increased from £550,000 in 2013 up to a £990,625 in 2018, nearly double, having jumped by 40.5% in the last year. The gross margin has increased from 47.3% in 2014 to 59.9% in 2016 down to 55.2% in the current year. Wages have increased from 16.7% in 2014 to 29.0% in 2017 at around 24.7% in 2018. Whilst the operating profit has fluctuated from £54,400 (8.4%) in 2014 to £85,952 in 2015, dropping in 2016 and 2017, due we understand to the management taking their eyes off the ball during a period of major building works. Increasing back to £107,514 10.9% in 2018. Popular Plants turnover has increased from £84,400 in 2014 to £112,000 in 2016, dropping back to £103,000 in 2017 to £85,000 in 2018 with the operating profit dropping from £21,726 (11.5%) in 2015 to an operating loss in 2016 to £4,146 (3.7%) in 2017 and a small operating loss in 2018. There is a management charge of £12,000 which we have not added back to the operating profit because there are no wages, wages being paid by Agrumi. Accordingly, we are of the opinion that the current value of Popular Plants relates to its purchasing power from Agrumi and the management charge contribution but there is no reason why as turnover increases profitability will follow.

GENERAL REMARKS/COMMENTS APPERTAINING TO VALUE Agrumi Nursery is an attractive interesting business which has showed considerable increases in turnover and profitability over the past five years offering points of difference but where there is still potential to increase turnover and profitability, by selling via the farm gate and incorporating a shop selling a limited amount of garden sundries. Agrumi is located in a very sought after part of the country, the New Forest. Assuming planning consent can be granted for the cottage there is an appropriately sized property for either a manager or the younger generation and there is a very attractive untied house and thus there is the capability of offering the nursery with or without the main house which will increase marketability.

PROPOSAL - Offers are sought in the region of £750,000 plus stock and moveable plant and machinery at valuation for the freehold interest of the land, infrastructure, buildings and trading potential assuming the cottage has obtained retrospective planning consent. The untied Meadow Farm house can be available subject to separate negotiations seeking offers at circa £795,000. PLANT AND MACHINERY - A detailed list can be made available to seriously interested parties following a formal viewing. STOCK – Stock is available by separate negotiation.

STAFF - A staff list can be made available to seriously interested parties following a formal viewing.

FINANCE - In addition to our property services we have extensive experience in raising money for individuals and businesses. We use a network of first class lending agencies and we can arrange term loans and overdraft facilities.

We have no ties with any bank or other lender and we always act for you, not the bank.

If you want an independent, no obligation, appraisal of your requirements please call Simon Quinton Smith on 01635 262520 or 07785 732460.

LEGAL COSTS - Each party to pay their own legal costs. VIEWING - Strictly by appointment through agents:- Quinton Edwards Bartholomew House, 38 London Road, NEWBURY, Berkshire. RG14 1JX TEL: 01635 551441 FAX: 01635 551440

*Subject to Contract *All Figures Quoted are Exclusive of VAT *All Measurements Are Approximate 8th May 2019

Misrepresentation Act This information and the descriptions and measurements herein do not form part of any contract and whilst every effort has been made to ensure accuracy, this cannot be guaranteed