How MKM boss David Kilburn went from redundancy at 50 to building huge company

Mr Kilburn, now 77, says it has been an amazing journey for the company since it was founded in 1995 with five staff and the help of his wife in a small 5,000 sq ft premises in Hull.

He had been working in Grimsby as a commercial director for a company called Harcros when he was among 100 members of staff that were made redundant as half of the firm’s regional offices were shut.

While his Hull-based friend and colleague Peter Murray survived the redundancy process, Mr Kilburn took the opportunity to ask him if he fancied running his own business. The answer was yes, and MKM was born.

Mr Kilburn says the pair had a simple blueprint. “It wasn’t arrogant but we just thought we could do it better than anybody else. By providing high levels of customer service and selling things at a fair price, we thought we had got a fair chance that we could build a successful business.”

But as the business developed, two key innovations helped drive the firm forward and remain central today.

The first came about when one of Mr Kilburn’s former employees asked if he could set up an MKM branch in Driffield. He was offered a 25 per cent stake in the branch – a model that still applies today for the 200-plus branch directors in the company.

Mr Kilburn said the profit split works for all parties and is “extremely lucrative” for branch directors. "The fact that we have enabled a lot of people to be very successful is rewarding in itself. It is just a formula that works. An owner manager is going to be much more diligent and looking for growth and going the extra mile.

“From a business perspective, we attract the best of the best because of the rewards and opportunities.”

Their other key innovation is to choose branches in visible locations.

"Our competitors tend to operate out of industrial sites. If possible, we prefer to avoid those and be on a main road.

"Whilst predominantly we're a trade supplier, we welcome the public as well to shop with us and I think it makes them feel more comfortable. The visibility of it obviously alerts them to the fact that we exist.”

The company has been through several changes of ownership structure over the years, with Mr Murray selling his shares in 2006. 3i Group and LDC, part of Lloyds Banking Group, invested before Bain Capital became majority shareholder in 2017.

Kate Tinsley has been CEO since 2020, with Mr Kilburn remaining on the board but playing a lesser role in day-to-day operational decisions than previously.

He says he is “very comfortable” with the new arrangement. “Having Kate on board has been the perfect match. I will be 78 this year so I have got to be a realist. I don’t want to work forever, so some common sense had to prevail at some point.

“I’m enjoying myself still being part of MKM but not having to run it on a day-by-day basis.”

Kilburn says MKM has “huge ​opportunity for growth and is still in its infancy”.

He says: “We have got 107 branches but some competitors have 600 or 700 branches. I’m not saying we are going to get to 600 or 700 but growth for a substantial number of years is and will be a possibility.

"The plans are currently to open between 12 and 15 new units a year.”

Mr Kilburn says the success of the company he helped build is down to its dedicated staff.

"Obviously from a Hull and Yorkshire perspective it is a bit of success story. For the people who have made it successful it is nice for them to have some recognition.”