MKM Building Supplies sees sales climb 31 per cent

The Hull-based business saw revenues boosted to £213m, up from £163m in 2013. Earnings before interest and tax rose 86.6 per cent from £6.7m to £12.5m.

The firm, which has 42 branches across England and Scotland, also recorded cash reserves of £11m and reduced overall debt to £16.5m at the end of the year.

New branch openings, product development, operational efficiency and the launch of a fully-transactional website as drivers for its strong performance, MKM Building Supplies said.

Chief executive David Kilburn said the growth was down to the people the business employs as part of its “unique business model”. Branch directors share profits generated at their site, which promotes excellent customer service, he said.

Mr Kilburn said: “The unique business model attracts those who are keen to succeed and are prepared to go the extra mile.

“In addition they tend to bring with them like minded employees, who also enjoy a profit share connected to their branch performance. This has been a major part of our success over the years and has helped us achieve consistent, managed growth.”

Three new branches were opened in the year at Castleford, Durham and Glasgow and were already profitable, he said.

The branch openings, which are part of an ongoing expansion plan, brought the business’ headcount to 900, up from 800 in 2013.

MKM Building Supplies has continued to perform well in the current financial year, Mr Kilburn said, as the construction sector continues to recover.

He said: “The first quarter results have been very strong proving that the implementation of a clear growth strategy is beginning to pay dividends.

“The plan includes further investment in people, adding product management resource, implementing new marketing initiatives, opening new showrooms, improving technology and further investment in transport.”