Member Article

Hull’s MKM Building Supplies increases revenues to £213 million

Hull-based MKM Building Supplies has reported that revenues have grown to £213 million, up from £163 million.

The firm also 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.

EBIT increased from £6.7 million to £12.5 million.

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

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 a fantastic performance.

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 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.

MKM Building Supplies has 42 branches extending from Perth in Scotland to Deal in Kent and, in addition, their online presence is on track to help them become a true multichannel business.

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

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.

This was posted in Bdaily's Members' News section by Clare Burnett .