Building supplies group plots "ambitious" expansion plan

INDEPENDENT builders’ merchant MKM Building Supplies has said its business model is behind its strong growth that has seen its sales crash through £250m.
The Hull-based group has 42 branches, predominantly along the eastern side of England and Scotland, and increased its sales by 18% to £251.9m in the year to September 2015.
It has added more than £100m to its top line in the last three years and MKM, which says it is the UK’s largest independent builders’ merchant, believes the time is right to expand across the UK.
Executive chairman David Kilburn said: “Market conditions are improving with increased activity among house builders and construction companies as well as a strong RMI [Remodelling Market Index] market. This gives MKM the confidence to roll out an ambitious expansion plan over the coming years.”
Its strong sales growth was matched by its rising pre-tax profits, which grew 46% to £10.8m having been around £2m in its 2012 and 2013 financial years.
Mr Kilburn added: “MKM’s unique business model, in which branch directors take a profit share proportionate to the performance of their branch, underpinned our strong performance.
“During the recession, the business model enabled us to outperform the market and as trading conditions have improved, that effect has been further enhanced.
“The branch directors’ stake in the business is real and brings tangible benefits to all. It has huge, positive implications for the company as a whole.”

MKM increased its workforce by around 130 people during the financial year, and now employs more than 900 people.

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