Independent construction specialist M.K.M Building Supplies Limited has posted a 63% boost in profits on the back of strong organic growth coupled with new acquisitions and openings.
The Hull based business, the UK’s largest independent builder’s merchant, has seen annual revenues rise 40% in the year ended September 30 2021, from £470m to £658m. It also saw a 63% rise in profits, to £84.6m.
The firm was founded in 1995 with just one branch and has since grown to over 91 branches in more than 20 counties in England and Scotland.
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Over the last year the firm has added 18 sites to its portfolio, 12 as new branch openings and six through the addition of three bolt-on acquisitions. In July, it also successfully refinanced the company’s debt on improved terms.
Neil Croxson, CFO of MKM Building Supplies, said the company is now looking forward to a growing contribution from the additional branches as they become more established and integrated.
He said: “Despite the challenging backdrop, we are pleased to report that MKM has continued to perform well.
“The financial performance is characterised by solid results, both at the top and bottom line. This reflects the unwavering professionalism and dedication of our staff who are committed to providing the very best customer service, encouraging customers to keep returning to our branches, despite the challenges of Covid.
"It was also a year of continued investment, with the addition of 18 new branches, including six acquisitions, which will support ongoing growth of the business in the current year and beyond. I would like to take the opportunity to thank all our staff, customers and suppliers for their ongoing commitment and support."
He said the firm continues to see strength in the local building supply market, sustained demand in its core market of repair, maintenance, and improvement work, as well as the wider market for new builds, post pandemic. Confidence in the market was reflected in the company opening new branches in Bolton, Sutherland, and Skelton in the current year.
In 2019 the company adopted the Streamlined Energy and Carbon Reporting (SECR) framework and it is continuing to seek to reduce its environmental footprint. During the year, initiatives undertaken enabled CO2 emissions per £1 of sales to be reduced by 12%, with overall emissions increasing in-line with the size of the business.
Initiatives to reduce emissions included replacing lighting with LED equivalents, switching to a new electrical tariff, delivering 100% renewable energy, investing in solar panels, and using the company’s fleet of electric forklift trucks, electric plug-in hybrid cars and compressed natural gas HGV vehicles.
The company also looked to support a number of charities. Commitments to charitable causes included the donations of timber to support the building of an inner-city adventure playground for St Michael’s Youth Project in Hull, a staff Christmas jumper fundraiser to raise money for Save the Children, and teaming up with the HEY Children’s University, a local charity in Yorkshire, to inspire the next generation of industry professionals.
