MKM Building Supplies reaffirms position as sales grow
Published: 10 February, 2016
MKM Building Supplies has reported outstanding growth in 2014/15. Revenue at the Hull-based group rose by 18% in the 12 months to September 2015, reaching £252m, up from £213m in the same period of the previous year. EBITDA and operating profit climbed further, both rising 27 per cent to £17.1m and £15.9m respectively.
David Kilburn, joint-founder and executive chairman of MKM, said: “Our 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.”
Mr Kilburn added that MKM Building Supplies’ strong cash position had been achieved through cost gains, sensible margin control and good working capital management, all of which enabled the company to invest in hiring quality staff to improve the customer experience, and to extend the product range.
He said: “Many of our branches now have kitchen and bathroom showrooms complete with design experts to assist trade and retail customers alike. We are helping our customers to buy everything they need under one roof and we see significant opportunities for growth by extending other product areas in the same way.”
Picture caption: David Kilburn, joint-founder and executive chairman of MKM Building Supplies.