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MKM revenues climb towards £1bn

24 Apr Acquisitions helped grow revenues at builders’ merchant MKM Building Supplies last year but expansion costs softened profits.

In the year to 30th September 2023, MKM Building Supplies Ltd increase in revenues by 13% to £927m (2022: £818m).

Group profit for the year was £88.5m (2022: £91m). The boad said that this reflects strong revenue growth from new branches and solid underlying revenue from established branches, offset by an increase in the cost base, as expected, due to the relatively greater number of recent branch openings.

MKM added 18 branches during the year – 13 new openings and five acquisitions. Four more branches have been opened or acquired since the financial year-end, taking the current total to 125, up from 47 since it was taken over by Bain Capital in 2017.

Chief executive Kate Tinsley said: “2023 was another solid year for the business. We saw MKM continue to outperform, against what was a more challenging market than recent prior years. This performance was driven by our strategic focus on new branch openings, investing in existing branches, ensuring product availability, a motivated team and our continued commitment to local communities and service.

 “While we have grown into a national business, we have always kept to our roots, which is to work with local branch directors, meeting local needs and customer service at the individual branch level. We do this by incentivising local management and staff and by giving each branch significant autonomy. The result is that we have stronger relationships with our customer base, ensuring their repeat business and, through reputation, grow our market share.” 

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