LEAGUE TABLES
GROSS MARGIN GROWTH: RISES BEING PASSED ON
1. Brewer Gross Margin Growth
This is where it gets a little interesting. We can probably ignore the first three in the table, because Brewers load their cost of sales line with more than the cost of goods for resale, and both Travis Perkins, with the sale of the heating and plumbing division, and Stark/Saint Gobain (prior to selling the divsion to Stark) underwent corporate changes which make their year-on-year figures an unreliable comparison. However, there’s a solid 36 companies which have recorded a year-on- year increase in gross margin. Excluding the top five and bottom five in the table to eliminate the outliers indicates that the industry achieved an average gross margin gain of 3.4 percentage points. In 2020, the comparable figure was minus 1.02 percentage points. So even in a period of rapid price inflation, if demand is high enough (and clearly it is) then there’s been no problem passing the cost increases on to the customer.
Operating Margin
BMJ’s view is that the operating margin is the key margin, and this table paints a very positive picture of the industry’s state of health. Eliminating the outliers by excluding the top and bottom five companies in the table, we arrive at an indicated industry average operating margin this year of 7%. Three years ago in 2020, the comparable figure was 5.4%. That’s a statistic worth sharing with your bank, your shareholders and your potential investors – always assuming, of course, that your own operating margin is somewhere close to (or preferably above) that 7%.
2. Travis Perkins
3. Stark/Saint Gobain 4. Robert POchin 5. Elliott Bros
6. Beggs & Partners 7. James Hargreaves 8. Kellaway
9. Highbourne 10. IBMG
11. C&W Berry
12. Beesley & Fildes 13. Alsford Timber 14. Wolseley UK 15. Builder Depot 16. Williams
17. Nicholls & Clarke 18. Covers
19. Grafton Merchanting GB 20. Grant & Stone 21. MGM Timber 22. Kent Blaxill 23. Lords
24. Crossling
25. Parker Building Supplies 26. Huws Gray
27. John A Stephens
28. Myers Building Supplies 29. Robert Price & Sons 30. Haldane Shiells
31. National Timber Group 32. Joseph Parr 33. Browns 34. LBS
35. MP Moran 36. Turnbull 37. Frank Key 38. RGB 39. MKM
40. Sydenhams 41. Boys & Boden 42. J T Dove
43. Walter Tipper 44. John Nicholls 45. JT Atkinson
46. AW Champion 47. Carver
48. Lawsons
49. Bradford & Sons 50. James Burrell
51. Howarth Timber Supplies 52. Paintwell 53. Markovitz 54. Beatsons 55. AW Lumb 56. EH Smith
57. UK Plumbing Supplies 58. CRS
8
51.8% 42.1% 36.1% 21.0% 17.7% 16.8% 12.8% 11.2% 9.3% 8.3% 8.2% 8.1% 7.8% 7.2% 6.9% 6.6% 6.1% 6.0% 5.7% 5.4% 5.3% 5.3% 5.2% 4.5% 4.5% 4.4% 3.7% 3.2% 3.0% 2.7% 2.4% 2.3% 2.2% 2.1% 2.1% 2.0% 1.5% 0.5% 0.4% 0.4% 0.0% -0.0% -0.3% -0.4% -0.4% -0.4% -0.5% -0.6% -0.7% -0.8% -1.5% -2.9% -4.2% -5.2% -5.2% -9.1%
-12.7% -14.2%
TRAILBLAZERS
OPERATING MARGIN: ANOTHER POSITIVE INDICATOR
1. Sydenhams 2. Huws Gray 3. Lawsons
4. Myers Building Supplies 5. Beatsons
6. AW Champion 7. Haldane Shiells
8. Robert Price & Sons 9. Boys & Boden 10. Walter Tipper 11. JT Atkinson 12. CRS
13. Carver 14. LBS
15. Alsford Timber 16. Covers
17. James Hargreaves 18. MP Moran
19. Beggs & Partners 20. C&W Berry 21. MKM
22. Beesley & Fildes 23. Crossling
24. MGM Timber 25. Paintwell 26. Joseph Parr 27. AW Lumb 28. RGB
29. Turnbull 30. Robert Pochin
31. Parker Building Supplies 32. Frank Key 33. J T Dove 34. Kellaway
35. John A Stephens 36. Elliott Bros 37. John Nicholls
38. National Timber Group 39. Brewer
40. Grant & Stone 41. Williams
42. Howarth Timber Supplies 43. EH Smith
44. Kent Blaxill
45. Bradford & Sons 46. Markovitz
47. Wolseley UK 48. Highbourne 49. James Burrell
50. UK Plumbing Supplies 51. Lords
52. Builder Depot 53. Nicholls & Clarke
54. Grafton Merchanting GB 55. Browns 56. IBMG
57. Travis Perkins 58. Stark/Saint Gobain
15.4% 12.6% 12.0% 11.7% 11.7% 11.4% 11.1% 11.0% 10.9% 10.7% 10.3% 10.0% 9.8% 9.7% 9.6% 9.5% 9.0% 9.0% 8.9% 8.8% 8.5% 8.5% 8.3% 8.2% 8.2% 8.2% 8.0% 7.9% 7.4% 7.4% 7.0% 6.9% 6.8% 6.3% 6.1% 6.0% 5.7% 5.7% 5.5% 5.5% 5.2% 5.0% 5.0% 5.0% 4.6% 3.8% 3.7% 3.7% 3.5% 3.0% 3.0% 2.3% 2.1% 1.9% 1.3% 1.2% 0.1%
-0.0% A supplement to builders merchants journal April 2023
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