Revenues soar for MKM in landmark year that saw 100th…

Revenues soar for MKM in landmark year that saw 100th branch open

Hull-headquartered independent builders’ merchant MKM delivered a 24 per cent increase in sales in the year it opened its 100th branch.

Turnover hit £818 million in the year to October 2022, a significant uplift on the previous period’s revenue of £658 million. Profits increased by 7.3 per cent, in line with expectations, to £91 million.

Employee numbers also passed the 2,500 mark, up 14 per cent, as 12 locations were added to the huge portfolio. Nine new branches opened with three acquired in a frenetic year for the company. And since the year end, six further branches have launched, taking the total to 109.

Chief executive Kate Tinsley said: “The 2022 results reflect another strong performance for MKM. This was supported by a dozen new branch openings as we continued to consolidate our position as the UK’s leading independent builders’ merchant.

“Strong sales resulted from ensuring sector-leading product availability, as well as continued investment in staff and training.

Kate Tinsley, MKM chief executive, takes part in a charity football event to mark the opening of the 100th MKM branch in Bromsgrove, watched by colleagues including co-founder David Kilburn, left. (Simon Hadley)

“Passing our 100th store opening was a significant milestone and we now have branches from Scotland to Cornwall and Wales to East Anglia. Despite the increased footprint, we firmly remain a local company wherever we operate and are pleased to have made meaningful contributions to the communities we serve, which is at the heart of the way MKM operates.”

MKM, crowned Yorkshire's large corporate business of the year for 2022, was launched by pals David Kilburn and Peter Murray, after the former was made redundant by the national chain he worked for, in Grimsby. Returning to his Hull home city it launched with a team of five. An initial buy-out in 2006 by 3i Group and LDC, part of Lloyds Banking Group, was followed by a second, in Bain Capital, in early 2017. MKM had 47 branches at that point.

Part of the success has previously been attributed to the unique business model, with branch directors hold a significant stake in the business they run.

During the year the MKM Home concept was also launched, with a showroom style enticing home-owners as well as trades. It also took on sponsorship of Hull City and Hull FC's stadium. There is no slowdown in growth ambition, with location searches underway for branches to open in 2025, as reported.

In the strategic report accompanying the company-released results, Ms Tinsley added: "The outlook for the business remains positive, with the opportunity to further expand the regional footprint of the business, deliver continued growth from the existing branch network, particularly those branches that are still relatively new, and meet the continued demand for building products.

"During 2023, the company has ambitions to open a further 15 branches."

A push on energy efficiency has also yielded strong results, with MKM’s CO² emissions per £1 million of sales reduced by 18 per cent, after it increased renewable energy use, including with solar panel installation on premises, introduced a low emission vehicle fleet and ran a LED lighting upgrade programme.

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