While UK builders’ merchants generally saw their sales fall by more than 4% last year, MKM Building Supplies (Group) Ltd grew revenues by 6.4%.
However, the cost of financing the operation has escalated resulting in pre-tax losses growing threefold.
The company saw revenue grow during the year to £986m (2023: £927m), on the back of expanding the number of branches, via greenfield sites and acquisition. This included the addition of 11 branches in 2024, which comes on the back of 18 additions during 2023, 12 additions during 2022 and 18 additions in 2021.
The company added a further 11 branches during the year, bringing the total to 132. MKM had 47 branches when it was taken over by Bain Capital in 2017.
Branch openings in 2024 included eight greenfield sites and three acquisitions. This included the acquisition of Oceanair, a specialist distributor of heating, ventilation & air conditioning products, including air source heat pumps.
However, losses grew to £25.0m before tax, (2023: £8.6m pre-tax loss) with £55.9m of finance costs being charged to the business, while net debt increased during the year from £478m to £506m.
Operating profit was down 11% to £31.6m (2023: £35.5m), reflecting market conditions during the period and the greater proportion of young branches that require time to become established.
Chief executive Kate Tinsley said: “MKM had a strong 2024, significantly outperforming the sector and growing revenues, despite a tough market. We added 11 new branches and kept our focus on great customer service and product availability.
“The market seems to be stabilising with lower interest rates and better consumer spending, leading to more property transactions and mortgage approvals. We’re in a good position to benefit from these positive trends and are excited about the year ahead”.
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