Independent builders merchant Grant & Stone had a bumper year in the 12 months to March 31 2011.
New accounts filed at Companies House this month show that the High Wycombe-based builders merchant’s sales jumped 20% at £30.45m, with gross profit up similarly at £8.92m. Operating profit and net profit both rose by 38% to just over £2m.
Trading ratios place Grant & Stone high in BMJ’s analysis of industry averages. Gross margin rose slightly to 29.3%, and operating margin of 6.7% is among the best in the business.
Sales per employee of £238k puts G&S among the merchant market’s top 10, and according to the league tables published in BMJ January, operating profit of £15,984 per employee is the second highest of any merchant, beaten only by Huw Gray.
The only ratio to slip was stockturn, which fell from 9.5 times to 8.8 times – but even this lower figure is high enough to keep Grant & Stone in the BMJ top 10. Return on capital was consistent at just over 60%, and the BMJ Index score (arrived at by multiplying sales growth, operating margin and stockturn), was a remarkable 1164 – 300 index points clear of current league leader AW Lumb.
Grant & Stone is a partner in independent builders merchant buying group NBG LLP.