MKM outperforms tough market in 2009
Published: 23 June, 2010
HULL: MKM Building Supplies, one of the UK’s leading independent builders’ merchants, supplying to the RMI (Repair, Maintenance and Improvement) construction sector, has reported its annual results to 30 September 2009.
The Group continues to trade profitably, showing robust performance ahead of the market in a highly challenging sector and a strong position for recovery and growth in 2010.
2009 operating profits were lower in an extremely challenging market. However, results included the impact of significant investment and improvement initiatives. These include the launch of four new branches, recruitment of sales and distribution staff, the successful trial and subsequent rollout of a new locally managed auto-replenish stock management system and efficient use of working capital and cost control.
Cash generation was also strong, enabling the continuation of the UK branch expansion programme, which is the key driver to MKM’s growth strategy.
2010 Outlook and Strategy
Trading volumes have begun to stabilise in the first half to 31 March 2010, marked by exceptional sales of £59.3m, up 7.2% from £55.3m (2009) and EBITDA of £3.3m, rising from £2.9m year on year. This has continued into the year with April 2010 significantly ahead of business plan targets, outperforming its sector which experienced a fall.
The strategy is focused on organic growth through acceleration of MKM’s local branch rollout programme across the UK. The Group is maintaining its commitment to the unique MKM model of recruiting entrepreneurial branch managers, granting equity ownership to deliver industry differentiation and improved customer service. During 2010, further long term investment is being made in health & safety and environmental initiatives and long term growth will continue to come from attention to detail and doing the simple things exceptionally.
David Kilburn, chief executive of MKM Building Services explained: “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.”