MKM to create new jobs in branch expansion

Hull-based MKM also revealed that it expects its full year turnover and profits to rise, despite the tough economic climate.

The majority of MKM’s shares are held by the management team, which is led by chief executive David Kilburn, although private equity houses 3i and Lloyds Development Capital also have minority stakes in the business.

In the year to September 2010, MKM achieved sales of £129.5m, which led to an EBITDA (earnings before interest, taxation depreciation and amortisation) of £7.8m.

Yesterday, the company revealed that it was expected to have achieved sales of £132.6m, with EBITDA of £8.9m in the year to September 2011.

MKM expects to open 10 branches in the next 18 months.

Mr Kilburn said this expansion could create between 140 and 200 jobs. MKM already employs 700 staff.

The company opened its 37th branch in Perth, Scotland in June.

The office in Perth, which employs 12 staff, is the first new MKM branch since 2009.

The company is also starting to re-build its Anlaby branch in East Yorkshire and build new offices at its headquarters on Hull, in order to accommodate more staff.

Mr Kilburn said Scotland was an “area of opportunity” for MKM, which has traditionally been “east coast centric”.

He said the company’s core market was focused on repair and maintenance.

He said the sudden slump in 2008 had caused “a sharp intake of breath” across the industry.

He added: “The private housing sector has been devastated but we weren’t hit really hard by that.

“There is still plenty of business out there. I’m very confident that we can retain our best people. I have every confidence that the only way is up.

“We are extremely pleased to be embarking on an exciting plan of expansion over the next two years. Our Perth branch kick-starts all our plans.

“We haven’t opened a new branch since we opened our Dereham branch (in Norfolk) two years ago.

“We believe now is the time to invest in the company and stimulate growth.

“The next two years will see us re-invest in the company to further strengthen our posi- tion.”

A company spokesman said yesterday: “Unfortunately, we cannot give any information about future branch openings, however aside from Yorkshire, the new branches will be located in Scotland, the North West, Midlands and the South of England.”

MKM was founded with five staff in 1995 in a 5,000 sq ft shed in Hull.

The company supplies a range of materials for use in building, joinery plumbing and landscaping. It also stocks kitchen and bathroom suites.

MKM has also been involved in developing some of Hull’s best known buildings including the KC Stadium, which is the home of Hull City football club and Hull FC rugby league club, and Hull Collegiate School.

MKM has also launched MKM online, an ecommerce store that sells a range of DIY, gardening and building accessory products.

MKM revealed that it had appointed local builders to complete many of its contracts, including George Houlton & Sons, who have been given a £1m contract to rebuild the firm’s Anlaby branch. This work is due to be completed in November.

The new offices at the company’s headquarters will be built by Hull-based company Hall Construction Group.

Giving managers a say

MKM is a Hull-based company and was established 16 years ago by entrepreneurs David Kilburn and Peter Murray.

The company moved into its first purpose-built site in 1997, as the UK economy entered a period of steady growth.

According to the company’s website, management soon realised that they wanted to create a branch network. The business has given branch managers a stake in the company and an opportunity to claim a share of the profits. According to the company, this has helped MKM to grow by attracting a team of entrepreneurial managers who have been keen to increase revenue and profits.