Builders’ merchants group MKM saw operating profits halved for the year to September 30 2009.
However, the Hull-based merchant expects to see improved trading in 2010
MKM’s operating profits were £5.8m, down from the previous year’s £9.3m, on turnover that was 10.3% down at £121m.
However, the strong year-end cash balance position of £7.6m (2008: £6.8m) derived from focus on working capital management and cost control during the year, whilst operational improvements were driven by the further enhancement of business operating systems.
During the year MKM expanded to 36 UK branches, with new openings in Dereham, Kings Lynn, Selby and Southport.
The company says that trading volumes began to stabilise in the six months to 31 March 2010, with exceptional sales of £59.3m, up 7.2% from £55.3m (2009) and EBITDA of £3.3m, rising from £2.9m year on year. April has been described as “significantly ahead of business plan targets”.
MKM chief executive David Kilburn said: “Despite the toughest market environment in our 15 year history, MKM’s 2009 financial performance has been robust. During this period we have outperformed our sector through careful cost control, prioritisation of investment in customer service and systems and selective branch expansion.
“Additionally our strong cash position will enable us to accelerate our branch rollout programme as we start to see recovery appear over the next 18 months and increased consumer appetite in the local RMI/building improvement sector.”