Strong financial performance reinforces growth at builders merchant

An independent builders merchant has added 18 additional branches to its network and seen its profits rise 63% to £84.6m in its full year results for the period ended 30 September 2021.

The extra branches for Hull-based MKM Building Supplies include 12 new branch openings and six branches acquired via three bolt-on acquisitions.

The company, which was founded in 1995, has now grown to over 91 branches in more than 20 counties in England and Scotland.

MKM says it continues to see strength in the local building supply market, sustained demand in its core market of repair, maintenance, and improvement work, as well as the wider market for new builds, post pandemic.

Neil Croxson, CFO, said: “Despite the challenging backdrop, we are pleased to report MKM has continued to perform well.

“The financial performance is characterised by solid results, both at the top and bottom line.

“It was also a year of continued investment, with the addition of 18 new branches, including six acquisitions, which will support ongoing growth of the business in the current year and beyond.”

Over the same period, MKM recorded a 40% increase in annual revenues (2020: 2.7% rise) and it successfully refinanced its debt, on improved terms.

A spokesman for the business added: “The refinancing supports the long-term strength of the balance sheet, providing operational flexibility and reflects the broader strength of the business.

“These achievements were made despite the backdrop of COVID throughout the period, which placed very real challenges on the daily operations of the business, including the supply chain.”