search.noResults

search.searching

saml.title
dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
LEAGUE TABLES GROSS MARGIN


Comparing gross margins between companies is risky, because there’s no standard definition of ‘cost of sales’. AW Champion and AW Lumb, for instance, obviously don’t use the same method of calculating their costs of sales, so there’s no point in try to compare their gross margins. But it’s reasonable to assume that most companies are consistent in their reporting from year to year, so it’s valid to look at longer-term trends in gross margin – and this discloses a slightly worrying trend. The average gross margin achieved by the Trailblazers-listed companies this year is a respectable 27.8%. But that’s marginally lower than last year’s 27.9% - which was in turn rather less marginally lower than 2019’s 28.6%. And in 2018 and 2017 it was higher still, at 28.7%. So the average has been declining gently but steadily for the past five years.


Looking further back, the trend changes: an average of 28.2% in 2015, rising to 28.4% in 2016 and 28.7% in 2017. These aren’t exactly massive changes, of course. But given that pretty much every other key ratio in the merchant business starts with the difference between buying price and selling price, the fact that the average Trailblazers gross margin is now at a seven-year low has to be a cause for concern.


GROSS MARGIN GROWTH


An almost perfect balance here: 26 of the 52 Trail Blazers improved their gross margin in the latest financial period, and 25 of them saw their gross margin decline. And an almost perfect balance in the value of the rise/fall, too: among those who recorded a rise the average gain was 3.9 percentage points, and among those who recorded a fall the average decline was 4.2 percentage points.


So really the only conclusion to be drawn here is that if the Trailblazers can be taken as a representative group of the industry as a whole, then gross margins in merchanting have remained steady in the latest financial period.


GROSS MARGIN: CAUSE FOR CONCERN 1. AW Champion 2. MP Moran 3. Sydenhams


4. Nicholls & Clark 5. Lawsons 6. Frank Key 7. LBS


8. Alsford Timber 9. Covers


10.Huws Gray 11. Beatsons


12. Boys & Boden 13. Bradford & Sons 14.Walter Tipper


15. John A Stephens 16.RGB


17. JT Atkinson 18. Kent Blaxill


42.3% 40.5% 40.1% 38.2% 37.9% 37.0% 35.5% 35.3% 35.2% 34.3% 33.1% 32.6% 32.2% 32.1% 31.8% 31.8% 31.6% 31.0%


19. Howarth Timber Supplies 30.8% 20. Grant & Stone 21. Travis Perkins


22. National Timber Group 23. UK Plumbing Supplies


30.4% 30.2% 29.0% 28.9%


24.Parker Building Supplies 28.8% 25.JT Dove


26. Builder Depot 27. Haldane Shiells 28.CRS


29. John Nicholls


30. James Hargreaves 31. Robert Price & Sons 32.MKM


33. Turnbull 34. Joseph Parr


35.Myers Building Supplies 36. Lords


37. Grafton Merchanting GB 38. EH Smith 39. Crossling 40. Markovitz


41.MGM Timber 42. Carver


43.Wolseley UK


44.Beggs & Partners 45. Williams 46. Kellaway


BMJ LEAGUE TABLES SPONSORED BY


47. James Burrell 48. Beesley & Fildes 49.C&W Berry 50. Elliott Bros 51. Browns


52. AW Lumb 53. Jewson


6


28.6% 28.4% 28.3% 28.1% 27.5% 27.5% 27.4% 27.1% 26.8% 26.7% 26.1% 25.8% 25.3% 24.6% 24.6% 24.5% 24.0% 24.0% 23.1% 23.1% 22.0% 21.1% 19.7% 18.0% 17.6% 16.5% 15.1% 11.2% 8.9%


TRAILBLAZERS


GROSS MARGIN GROWTH: HOLDING STEADY 1. C&W Berry 2. Browns


3. Walter Tipper 4. Carver


5. Lawsons 6. Kellaway


7. Wolseley UK 8. MP Moran 9. Frank Key 10. Markovitz 11. LBS


12. Alsford Timber 13. Haldane Shiells 14.Covers


15. Travis Perkins


16. Nicholls & Clarke 17. Joseph Parr


18. James Hargreaves 19. EH Smith 20.RGB


14.8% 10.9% 6.8% 6.8% 5.0% 4.9% 4.8% 4.6% 4.1% 4.1% 3.9% 3.7% 3.7% 3.5% 3.0% 2.9% 2.7% 2.6% 2.0% 2.0%


21. Howarth Timber Supplies 2.0% 22. Kent Blaxill 23. Sydenhams 24.J T Dove


25.Parker Building Supplies 26.CRS


27. Beatsons


28. Grant & Stone 29. Bradford & Sons 30. James Burrell 31. JT Atkinson 32. AW Champion


33. National Timber Group 34.Myers Building Supplies 35. Turnbull


36. Builder Depot 37.MKM


38. AW Lumb 39. Crossling 40. Elliott Bros


41. Robert Price & Sons 42. John A Stephens


43. Grafton Merchanting GB 44.Huws Gray


45. Boys & Boden 46. John Nicholls 47. Lords


48. UK Plumbing Supplies 49.MGM Timber 50. Williams 51. Jewson


52.Beggs & Partners 53. Beesley & Fildes


1.6% 1.5% 0.8% 0.8% 0.7% 0.4% -0%


1.0%


-0.1% -0.4% -0.7% -1.0% -1.1% -1.2% -1.4% -1.7% -1.8% -1.8% -2.3% -2.6% -2.7% -2.9% -3.1% -3.0% -4.7% -5.9% -6.6% -6.7% -7.3%


-10.7% -12.6% -16.4%


A supplement to builders merchants journal April 2021


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88