BUILDERS MERCHANTS: A-Z Independent Builders Merchant Group
THE LARGEST BUILDERS merchants group in the south of the UK was formed when Grant & Stone Group and Independent Builders Merchant Group merged.
The new group has, at the last count, 137 branches, revenues of more than £500 million and over 1,700 employees. Its reach extends from Cornwall to Kent and comprises builders’ merchants, electrical wholesalers, plumbers’ merchants, kitchen and bathroom showrooms, roofing merchants, a timber processing site, and a dedicated ecommerce business. Private equity partner Cairngorm Capital, has underpinned the transformational growth that both sides of the new organisation have undergone in the last few years. Via a combination of
acquisitions and organic growth, IBMG - formed from the merger of Parker Building Supplies, Chandlers, Stamco and Fairalls - grew from 15 branches and revenues of £67m in March 2018, to 39 branches and revenues of over £200m in September 2021. In parallel, Grant & Stone grew its business from 29 branches in the Thames Valley and revenues of £100m in November 2019, when Cairngorm Capital bought it, to 84 branches between London and Cornwall of more than £300m. At a group level, the combined company is Independent Builders Merchant Group. However, the
CRS THE NUMBERS 2018 Turnover £m Gross profit £m
Operating profit £k Net profit £k Staff
THE RATIOS 2018 Stockturn Gross margin %
Operating margin % Net margin % Sales/head £k Profit/head £
Return on capital % BMJ INDEX
11.6 27.9 5.0 4.9
282
14,000 38.4
2019
10.2 28.1 3.9 3.8
261
10,272 28.6
2020 4.5
36.1 15.1 14.9 268
40,352 66.2
1365
30.7 8.6
1,526 1,492 109
2019
35.5 10.0
1,397 1,352 136
2020
42.6 15.4
6,416 6,323 159
% CHANGE 2019 15 16 (8) (9) 25
2020 20 54
359 368 17
% CHANGE 2019 (12) 1
(21) (22) (7)
(27) (26)
2020 (56) 29
283 290 3
293 132
TRAILBLAZERS
12 existing trading names and brands will continue to be used for all customer-facing activity: Grant & Stone, RGB, Parkers, Chandlers, Stamco, Fairalls, CRS, Total Plumbing Supplies, 3Counties and Dovedale Electrical and Sussex Plumbing Supplies,
Nick House, Group Chief Executive of Grant & Stone, leads the combined IBMG business, with Peter Cudd as Group Managing Director. On the Group Board, led by David Moore as non-executive Chairman, are executive directors – Allun
GRANT AND STONE THE NUMBERS
18/19 Turnover £m Gross profit £m
Operating profit £k Net profit £k Staff
THE RATIOS 18/19 Stockturn Gross margin %
Operating margin % Net margin % Sales/head£k Profit/head £
Return on capital % BMJ INDEX
5.5
30.2 6.5 6.5
262
16,960 30.4
19/20 6.7
30.8 3.8 3.8
262
10,018 0.0
2020 4.4
31.0 7.2 7.2
181
13,085 17.6 n/a
86.3 26.1
5,580 5,582 329
19/20
87.7 27.0
3,356 3,351 335
2020
59.3 18.4
4,292 4,255 328
Pittingale (Group Managing Director for IBMG South East), Kevin Fenlon (Group Projects Director and Chief Executive of RGB) and Richard Robinson (Group Chief Financial Officer). The group also appointed a Chief Commercial Officer, Martin Stables, in November 2021. At the time of the merger, House said: “This merger is the natural progression for both companies. Our branch networks and product ranges are highly complementary and our values, vision and commitment to customers are completely aligned, which creates exciting opportunities for us all. “We have ambitious goals to fulfil but IBMG is well structured, with strong investor support, exceptional products, first-rate employees and a well-deserved reputation for superior service. I look forward to leading the next phase of the group’s development.”
% CHANGE
19/20 2 4
(40)
(100) 2
19/20 22 2
(41) (41) (0)
(41) (100)
2020 n/a n/a n/a n/a (2)
% CHANGE
2020 n/a 1
89 88
n/a n/a n/a
28
A supplement to builders merchants journal April 2022
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