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MKM chief hails “exceptional” year as sales grow by 31%

The UK’s largest independent builders merchant, MKM Building Supplies, reported a 31% increase in sales for the 12 months to September 30, 2014, compared with the same period in the previous year, significantly outperforming the industry.

MKM chief hails 'exceptional' year as sales grow by 31%

The Hull-based merchant saw revenues grow to £213m, up from £163m, and EBIT increase from £6.7m to £12.5m.

A combination of opening new branches, development of key product areas, improved operational efficiencies and the launch of a fully transactional website, all contributed to the improved performance.

MKM Building Supplies also strengthened its cash position generating reserves of £11m while reducing overall debt to £16.5m at the end of the year.

Chief executive David Kilburn said: “The performance this year has been exceptional and this is all down to the people we employ and the fantastic service they provide to our customers. All branch directors in MKM’s 42 strong network share in the profits generated by their branch which incentivises them to find new ways to provide excellent customer service.

“The unique business model attracts those who are keen to succeed and are prepared to go the extra mile. In addition they tend to bring with them like minded employees, who also enjoy a profit share connected to their branch performance. This has been a major part of our success over the years and has helped us achieve consistent, managed growth.”

He added that the three new branches launched in Glasgow, Durham and Castleford last year were already profitable and had added to the company’s bottom line. These branches are part of an ongoing expansion programme by MKM and have contributed significantly to a growth in headcount, taking the number of people employed by the business to 900, up from 800 in 2013.

He also added that the new financial year has had a good start as the market continues to recover.

“The first quarter results have been very strong proving that the implementation of a clear growth strategy is beginning to pay dividends. The plan includes, further investment in people, adding product management resource, implementing new marketing initiatives, opening new showrooms, improving technology and further investment in transport.”

The business was listed in the Sunday Times’ Grant Thornton Fast Track 250 for the first time in 2014.

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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