Builders merchants invoice clearing house Unimer have announced their final results for the year to April 30 2008. The total value of transactions was £855m.
The results, approved at the organisations annual member day at the Celtic Manor Resort in Newport, show year-on-year growth of 11.3%. Howard Grant, managing director of Unimer plc, said that the results clearly showed that Unimer has outperformed the rest of the building materials sector. “Our well defined business strategy of focussing on the delivery of low cost invoice clearing services supported by proactive marketing opportunities for our suppliers has again produced another record year,” he says.
Unimer now have 1200 merchant members and approaching 700 supplier arrangements, trade is with independents and national although the national merchants now represent less than 2% of total throughput.
Overall costs have been kept to only 0.16% of turnover thanks to tight management controls, whilst successful cash flow management enabled the business to generate an additional £200K of interest earned on monies on deposit in the year.
“The final outcome for last year was all the more credible as the early months of 2008 started to feel the initial impact of the ‘credit crunch’ and rising supply prices,” Grant continues.
“Clearly we can all now recognise that the current financial year is going to present some unique challenges and a potential slow down in activity, which will be at a rate that the sector has not seen for a long time. In a declining market, cash flow management becomes paramount, and therefore Unimer’s role as an invoice clearing house, and underwriter of credit risk, will increase in importance as a means of suppliers to get paid and so that merchants optimise their bottom line performance”.
The launch of Unimer On-line will move the services forward and help both merchants and suppliers to speed up the invoice query process. This improvement will help manage cash flows, liquidity and reduce the volume of paper and telephone correspondence for all parties concerned.