Central US Electrical, Lighting, and Plumbing Product Wholesale Business Poised for Rapid Growth

This 66-year-old Company, based in central Kentucky, provides electrical, lighting, and plumbing service products primarily through its wholesale practice. The Company serves customers within a 30-mile radius of its headquarters; however, it holds potential to vastly increase its clientele base in the surrounding markets. Management states that roughly 90% of the Company’s products are sold through wholesale means, with the remaining 10% stemming from in-store, retail clients. Wholesale revenues are generated primarily from electrical and plumbing contractors, typically leading to repeat business clients. Regarding product mix, the Company’s revenues are primarily split between electrical and plumbing, with the lighting segment generating less revenue.

The Company operates from a roughly 24,000 square foot facility, which includes contractor’s sales rooms, offices, showrooms, and warehouse spaces. The building is owned by management along with the ~2-acre lot surrounding it, both of which are for sale with the business. Its current headquarters provides amble room for day-to-day operations of the business without sacrificing stellar service to its customers. Typically, the Company serves an average of 90 to 125 customers per day, primarily acquired through repeat business, word-of-mouth, and referrals, exemplifying a strong reputation within the area where it operates. The facility also provides enough space and storage to support continued growth in the coming years.

The Company has shown strong resilience and market dominance over the past few years. Within this timeframe, a big box supply store opened near the Company; however, following increasing competition, the Company saw minimal effects on its income statement. The firm saw little revenue and profit drop from the year prior and continued to grow afterward. Current ownership claims the reason for this success would be its larger, vast inventory selection, and knowledgeable staff easing the buying process. Currently, the Company is in possession of ~$1.4 worth of inventory, including common products, and niche, specialty products for any contractor’s needs.

Though the Company has experienced rapid growth over the prior four years, it is poised for continued revenue and profitability growth in the coming years. During 2023, the Company generated an estimated $4,334,000 in revenue, while earning an 18.7% profit margin. Compared to the year prior, revenues and profit grew by 10% and 3%, respectively. Going forward, base line forecasts project revenues to grow to $4,662,000, with net income increasing to ~$860,000 in 2025. In the coming years, the business is primed to drastically exceed financial forecasts through implementation of simple to enact growth strategies.