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John O’ Groats Ferries sees sale value rise under new selling agent

The business price has increased from £1.25 million to £1.4m in a year.

Fred and Deborah Fermor with Ivor Thomas. Image: John O'Groats Ferries
Fred and Deborah Fermor with Ivor Thomas. Image: John O'Groats Ferries

John o’ Groats Ferries remains for sale with the owners now seeking a higher asking price.

The ferry company had originally been up for sale for £1.25 million after hitting the market last year.

However, new selling agent Christie & Co has now valued the business at £1.4m.

It has been owned by members of the same family for more than half a century.

The business is now run jointly by Deborah Fermor, her brother Ivor Thomas and Deborah’s husband, Fred.

But they now feel the time is right to try new things.

‘Reluctant sale’

Fred said: “We’ve enjoyed running things here at John o’ Groats Ferries for many years and could happily keep going on, but having now passed the 60-year marker, we feel it’s a good time to try something new.

“We’ll be taking life a bit easier and travelling more but in some ways it’s a reluctant sale.

“I say this because it’s been a very enjoyable way to earn a living. We’ve had a lot of laughs throughout the years.”

John o’ Groats Ferries is still up for sale. Image: John o’ Groats Ferries

The company, which operates five months of the year, runs the passenger ferry between John o’ Groats and a private pier in Burwick on South Ronaldsay.

As well as the twice-daily passenger service to the island in the summer season, linking with a bus to Kirkwall, the ferry runs wildlife cruises around the north of Scotland.

Potential for growth for John o’ Groats Ferries

But Fred believes there is room for a new owner to think about expansion.

He said: “There’s is undoubtedly scope for a new owner to expand the business in many ways.

“We have concentrated on the core product – running a good ferry service and giving visitors wonderful memories.

“However, we’ve not even broken the surface of providing ancillary services, catering souvenirs and the like. There are opportunities aplenty there.

“There’s also further scope to increase the range of tours offered. A new owner could easily increase turnover there too.

“As a five month per year trading business, there is massive scope to increase turnover by extending the operating season.

“The most important opportunity though for a new owner would be the chance to run a business with a great work life balance and good team, in a wonderful part of the world.”

‘Strong income stream’

Commenting on the current asking price Christie & Co associate director retail Mark Lavery said: “We have appraised the business to go to market at £1.4m.

John o’ Groat Ferries is a “robust business” for a prospective buyer.

“That’s based on everything we’ve been given by the vendor.”

He added: “The opportunity gives any prospective buyer a ready built, robust business with a reliable, strong, income stream from day one.

“It would suit an operator who would relish a true ‘lifestyle change’ business with high profit margins.”