From Hull Live | Thursday 28 June 2018
One of Hull’s biggest businesses has announced a record turnover year after opening five new branches across the country.
MKM Building Supplies saw revenue soar to £332.4m in the year ending September 2017 – up from £284.3m the previous year.
David Kilburn, executive chairman of MKM, said the company was “delighted” at the result, which saw the Hull business increase revenue by a staggering 17 per cent.
He said: "We are delighted to have delivered another strong full-year financial performance, achieving 17 per cent revenue growth to over £332m, as well as growth in underlying EBITDA.
“This performance has been driven both by our new branch roll-out programme, which has seen us expand further into the North West, Scotland and the Midlands, as well as continued organic growth across the existing branch network, underpinned by a resilient RMI market and product category expansion.
“MKM benefits from its unique business model, which sees branch directors take an equity stake in their branch and a share of profits. This helps us attract, retain and incentivise the best talent, both financially and through autonomy, which plays out in levels of customer service.”
MKM now has 53 branches across the UK, and employs more than 1,400 people.
The UK builders’ merchant market is expected to grow by 12 per cent by 2020, taking it to a value of £13bn.
MKM is well-placed to push forwards as it seeks to continue to ride the wave in the industry.
The financial results for the year ending September 2017 revealed the building supplies company recorded an EBITDA (Earnings before interest, taxes, depreciation, and amortization) of £21.5m.
The slight dip from the 2016 year – down from £22.4m – has been caused by the cost of opening five new branches in the UK, the company said.
“We are also benefiting from our partnership with Bain Capital, who bring significant operational expertise to the table and are enthused by our growth model,” Mr Kilburn said.