TRAILBLAZERS Grafton-Selco
GRAFTON - SELCO THE NUMBERS
2020 Turnover £m Gross profit £m
Operating profit £k Net profit £k
THE RATIOS 2020
Stockturn 4.3 Gross margin %
Operating margin % Net margin % Sales/head £k Profit/head £
Return on capital % BMJ INDEX
39.4 1.8 6.1
164
12,517 63.6
2021 4.4
40.6 3.7
10.7 209
24,608 64.8
2022 4.0
38.9 2.4 7.0
202
16,281 43.8 (19)
Grafton’s traditional merchanting businesses in the UK were sold to Huws Gray in 2021, and their financials are now included with those of Huws Gray. We have, therefore, used Selco, the 75-branch fixed price merchant operation that is part of Grafton’s UK distribution arm as it is the element which competes most fully with the rest of the companies included in Trailblazers. The figures are those filed at Companies House under Selco Trade Centres.
The wider Grafton Group financial results for 2023 were released too late to be included in the tables, however, the results showed that Selco, being almost entirely exposed to the UK residential RMI market, saw
Strukta
STRUKTA THE NUMBERS
2020 Turnover £m Gross profit £m
Operating profit £k Net profit £k
THE RATIOS 2020
Stockturn 8.9 Gross margin %
Operating margin % Net margin % Sales/head £k Profit/head £
Return on capital % BMJ INDEX
30.6 14.1 13.4 205
29,043 92.5
2021 6.4
33.0 14.7 14.1 243
35,638 84.8
2022 7.8
29.6 12.9 12.4 280
36,210 82.5
2292 April 2024 A supplement to builders merchants journal
19.3 5.9
2,730 2,591
2021
22.8 7.5
3,350 3,221
Staff 94 94 2022
28.0 8.3
3,621 3,465 100
STRUKTA % CHANGE
21/22 18 28 23 24 0
21/22 (29) 8 4 5
18 23 (8)
22/23 23 10 8 8 6
% CHANGE
22/23 23
(10) (12) (12) 15 2
(3)
36 Walworth Road Walworth Industrial Estate Andover SP10 5LH Tel: 03333210013
http://strukta.co.uk
Branches: 10 Showrooms: 10
Branches Added/Closed in 2023: +2 Employees:129
Chairman: Adrian Diffey Managing Director: Myles Moggach
Turnover for 2023: £35M Buying Group: None
In1989 Southern Building Supplies was opened by Stephen Diffey, to serve the Wiltshire and Dorset areas. It was followed in 2000 by Coastline Building Products, which was opened by David Moggach serving the Hampshire and West Sussex areas.
In July 2013, SBS and Coastline merged to form strukta Group, and 10 years later, acquired SNS Building Products, expanding its reach by a further two branches. The group’s branches are in Andover, Bournmouth, Chichester, Farnborough, Portsmouth, Reading, Salisbury, Southampton and Weybridge.
35
470.6 185.4
35,862 28,885
2021
625.5 253.9 73,774 66,957
Staff 2,865 2,998 2022
615.0 239.0
49,478 43,085 3,039
Brick matching implants
% CHANGE 2021 33 37
106 n/a 5
% CHANGE 2021 2 3
106 n/a 27 97
n/a
2022 (2) (6)
(33) (36) 1
2022 n/a n/a (33) n/a n/a n/a n/a
were trialled in four branches to complement Selco’s brick matching service.
volumes continuing to trend downward, but the rate of decline slowed up from 6% in the first half to 2.3% in the second half, averaging 4.1% for the year following a decline of 15.0% in the prior year. During the year, the
company opened a new Selco Builders Warehouse branch in Peterborough, its 75th, and plans to have 90 branches in the medium-term, provided suitable premises and locations can found. Prior to the year end, Selco launched a trial HSS Hire satellite tool and equipment hire service in four of its branches. It also launched a trial of a Magnet kitchens showroom in three of its branches and plans to expand the concept if the pilot is successful.
Leyland SDM, the decorating and DIY brand operating in Central London, performed well, increasing revenue and operating profit, opening a new store in Hammersmith in February 2023. TG Lynes, the commercial pipes and fittings distribution business in London, delivered a good result in a weaker housing market almost matching the record profitability achieved in the prior year. MacBlair, the market leader in Northern Ireland, encountered weak trading conditions in a competitive market that reduced revenue and profitability. Market coverage was extended with the acquisition of branches in Portglenone, County Antrim and Strabane, County Tyrone. CEO Eric Born said: “Despite challenging market conditions, Grafton has succeeded in delivering full year adjusted operating profit above the top end of Analysts’ forecasts. This is testament to our resilient market leading positions, responsive management teams and portfolio of high-returning businesses. “Looking ahead, we expect to continue to benefit from the spread of the Group’s operations across four geographies and exposure to a broad range of end-markets. Our strong
GRAFTON-SELCO
Heron House Corrig Road Sandyford Business Park Dublin 18 D18 Y2X6 Tel: +353 (0) 1 216 0600
www.graftonplc.com
Subsidiaries (UK distribution): Doorways, Leyland SDM, McBlair, Selco,TG Lyne, Watershed Branches: 127 Employees: c 3800 CEO: Eric Born CFO: David Arnold
Selco Managing Director: Howard Luft
Selco Commercial Director: David Lennon
Selco HR Director: Sally Kerr Selco Supply Chain Director: David Rose
Leyland SDM CEO: Martin Hastings
Selco Branches: 75 Employees: 2900
Leyland SDM branches: 29 Employees: 360
Members of: BMF
balance sheet and record of cash generation will stand us in good stead.
“While trading conditions are expected to remain challenging, demand fundamentals are supported by a structural under supply of new homes and an aging housing stock that requires upgrading. We are confident that Grafton is exceptionally well positioned to benefit as the cycle turns, markets normalise and consumer confidence improves.”
GRAFTON-SELCO • STRUKTA BUILDERS MERCHANTS: A-Z
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