MKM sees sales grow by 31%
Published: 09 March, 2015
MKM Building Supplies has reported a 31% increase in sales for the 12 months to 30 September 2014, compared with the same period in the previous year.
The Hull-based business saw revenues grow to £213m up from £163m, and earnings before interest and taxes increase from £6.7m to £12.5m. 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 this high performance.
MKM Building Supplies also strengthened its cash position, generating reserves of £11m while reducing overall debt to £16.5m at the end of the year.
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 encourages them to find new ways to provide excellent customer service.
“The unique business model attracts those who are keen to succeed and are prepared to go the extra mile. In addition, they tend to bring with them like-minded employees, who also enjoy a profit share connected to their branch performance. This has been a major part of our success over the years and has helped us achieve consistent, managed growth.”
He added: “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 was listed in the Sunday Times’ Grant Thornton Fast Track 250 for the first time in 2014.