BMJ TRAILBLAZERS


TURNOVER: 1bn+ GRAFTON MERCHANTING GB


Grafton Grafton’s UK merchant-


ing business showed good revenue growth in the last quarter following two quar- ters of weaker demand due to subdued activity in the housing market.


The group includes build- ers and plumbers merchants trading under the Buildbase and Plumbase names, as well as Civils & Lintels, Corgi Direct, Hendricks Lovell, Hirebase, Jacksons Building Centres, L&G For- est Products, PDM, Nation- wide Drylining & Insulation, Secon, Electricbase and Sparesbase.


Last year, the Group an- nounced it would be closing 47 branches plumbing and heating and contracts busi- nesses. On the other hand, development of the Selco branch network continued with the opening of seven  (Chessington, South Croy- don, Mitcham, Wembley and Watford), one in Portsmouth


Turnover £m Gross profit £m


2013 984.1 266.2


Operating profit £k 28,538 Net profit £k


18,003 Staff 4,049 THE RATIOS 2013


Stockturn 6.5 Gross margin %


27.1


Operating margin % 1.4 Net margin % Sales/head £k Profit/head £


1.8 243 7,048


Return on capital % 14.7 BMJ INDEX


12


2014 6.9


26.8 1.7 2.7


236


7,669 23.5


26.2 1.9 2.7


220


7,438 19.1


72


GRAFTON


and one in Wolverhampton. Plans are in place to open at least ten new branches this year, starting with one in Croydon in January and Beckton, east London in February. Selco strength- ened its position as the UK’s fourth largest builders merchant after Buildbase with strong demand led by activity in the residential RMI market.


Buildbase’s like-for-like revenue growth was strong - ters and moderate for the overall year.


The gross margin was lower against the backdrop of competitive pressure on selling prices. The 80 Electricbase implants in Buildbase branches that supply a range of electrical products recorded a strong improvement in revenue - base division had a good year with increased revenue -


GRAFTON MERCHANTING GB THE NUMBERS


2014


1,046.5 280.2


33,987 28,767 4,432


1,102.7 288.7


37,304 29,638 5,015


% change


2015 2014 2015 6 5


19 60 9


10 3


13 % change


2015 2014 2015 7.2


6


(1) 19 50 (3) 9


60


(2) 10 (2) (7) (3)


(19) 5


5 3


GRAFTON MERCHANTING GB, Gemini One, 5520 Oxford Business Park South, Cowley, Oxford, OX4 2L Tel: 0845 168 5827 www.graftonplc.com


Brands: Buildbase, Civils & Lintels, Corgi Direct, Hendricks Lovell, Hirebase, Jacksons Building Centres, L&G Forest Products, PDM, Plumbase, Nationwide Drylining & Insulation, Secon, Electricbase and Sparesbase, Selco


Chief executive: Gavin Slark


lowing the development in recent years of tool, plant and equipment


Market coverage was extended with the acquisi- tion of T. Brewer, a special- ist timber business trading from three branches in London, and Allsands, a general builders merchant  Electricbase implants in Buildbase branches that supply a range of electrical products recorded a strong improvement in revenue - base division had a good year with increased revenue - ing the development in re- cent years of tool, plant and equipment hire implants in Buildbase branches. Buildbase Civils faced  Volumes were higher but pricing was intensely com- petitive and a lower gross margin contributed to a fall  The Scottish business  with increased focus on cost control; a number of branch- es were consolidated into Buildbase branches.


Plumbase showed modest growth in like-for-like rev- enue and a marginal decline


Buildbase CEO: Kate Tinsley Plumbase md: Andy Williams Electricbase md: Stephen Howell Hirebase md: Adrian Watts Plumbase Industrial TG Lynes, Booles Tools & Pipe Fittings md Martin Hastings


Buildbase Civils & Lintels md: Allan Wright


Plumbase operations director Mark Bradley Buildbase, Hirebase, Electricbase procurement director Ian McConvile


Buildbase regional md, southern: John Drennan Buildbase regional md, northern: Lyndon Johnson


Branches: 617 Employees: c.5320 Members of: BMF, CPA


in total revenue due to the closure of 28 branches. The business will in future focus on the professional domes- tic installer customer base through a smaller network of branches which have a better chance of improv-  and increasing returns on capital.


The bathroom distribution business registered solid revenue gains and contin- ued to deliver strong results and Plumbworld, the on-line retailer, achieved revenue gains in core products.


A supplement to BMJ April 2017


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