TRAILBLAZERS
OPERATING MARGIN: CAUSE FOR CONCERN? 1. C&W Berry 2. Huws Gray 3. Lawsons
4. JT Atkinson 5. MP Moran 6. MKM
7. AW Lumb
8. Boys & Boden 9. Walter Tipper
10. James Hargreaves 11. Sydenhams
12.Covers 13. LBS
14.JT Dove
15.MGM Timber
16. Robert Price & Sons 17.RGB
18. Crossling
19.Myers Building Supplies 20. Haldane Shiells 21. Joseph Parr
22.CRS
23. John A Stephens 24. Carver 25. Turnbull 26. Markovitz 27. Elliott Bros
28. Grant & Stone 29. Kellaway 30. Frank Key
31. AW Champion 32. Bradford & Sons 33. Browns
34. James Burrell 35. Alsford Timber 36. John Nicholls 37. Builder Depot
38. National Timber Group 39. Beesley & Fildes 40. EH Smith
41. Grafton Merchanting GB
42.Beggs & Partners 43. Travis Perkins 44. Williams 45. Beatsons
8.5% 8.2% 8.2% 7.6% 7.1% 6.8% 6.7% 6.5% 6.4% 6.3% 6.1% 4.9% 4.8% 4.8% 4.3% 4.1% 4.0% 4.0% 4.0% 3.9% 3.7% 3.3% 3.3% 3.1% 3.1% 3.0% 3.0% 3.0% 2.9% 2.8% 2.6%
-2.6% 2.2% 2.1% 2.0% 1.9% 1.8% 1.5% 1.4% 1.4% 1.3% 1.2% 1.2% 1.0% 0.6%
46. Howarth Timber Supplies 0.6% 47. Kent Blaxill 48. Jewson 49. Lords
0.5% 50.Wolseley UK
51. UK Plumbing Supplies 52. Nicholls & Clarke
-0.0% -0.9% -1.0% -2.5% -2.6%
53.Parker Building Supplies -2.8%
OPERATING MARGIN GROWTH: SEVEN YEAR LOW 1. Carver
2. Frank Key
3. Myers Building Supplies 4. Kellaway 5. Lawsons 6. J T Dove 7. Markovitz 8. C&W Berry
9. Builder Depot 10. Bradford & Sons
11.MP Moran
12.Walter Tipper 13. AW Lumb 14.RGB
15. James Hargreaves 16. Haldane Shiells 17. AW Champion 18. James Burrell
19.MKM
20. JT Atkinson
21. John A Stephens
22.Covers
23. Joseph Parr
24.MGM Timber 25. LBS
26. Sydenhams 27. Elliott Bros 28. Browns
55.2% 54.1% 41.0% 33.8% 17.0% 7.7% 7.6% 4.5% 3.8% 3.0%
-1.3% -2.9% -4.1% -5.0% -5.6% -5.9% -6.9% -7.0% -9.0% -9.6%
-10.6% -11.4% -13.9% -15.9% -16.0% -19.4% -20.5% -22.1%
29. Grafton Merchanting GB -23.4% 30. Crossling
31. Alsford Timber
32.Huws Gray
33. Robert Price & Sons
34.CRS
35. Turnbull 36. EH Smith
37. John Nicholls
-25.2% -25.3% -32.2% -32.5% -33.5% -34.9% -35.6% -38.9%
38. Howarth Timber Supplies -46.0% 39. Grant & Stone
40. National Timber Group 41. Williams
42.Beggs & Partners 43. Kent Blaxill 44. Beatsons
45. Beesley & Fildes 46. Lords
47. Parker Building Supplies 48.Wolseley UK
49. Boys & Boden
50. UK Plumbing Supplies 51. Travis Perkins
52. Nicholls & Clarke 53. Jewson
April 2021 A supplement to builders merchants journal
-54.0% -58%
-69.5% -80.4% -85.5% -87.7% -89.1% -215.3% -411.0%
n/a n/a n/a n/a n/a n/a
OPERATING MARGIN
On the face of it, this looks reassuring: 44 of the 52 Trail Blazers were profitable at the operating level in their latest reporting periods. There can’t be much wrong with an industry where 85% of the leading players have reported operating profits, can there? Except… 85% is actually the lowest figure for seven years. In 2020, 48 out of 53 Trailblazers (91%) reported an operating profit. In 2019, it was 49 out of 52 (94%); in 2018, 50 out of 50 (100%, obviously). 2017 saw 47 Trail Blazers out of 48 (98%) filing an operating profit, in 2016 it was 46 out of 46 (100%), and in 2015 it was 40 out of 42 (95%). BMJ has always considered operating margin to be one of the three key trading ratios (the other two being sales growth and stockturn) – so this table may actually be rather less reassuring than it first appears.
OPERATING MARGIN GROWTH This is less reassuring: only eight of the 52 Trail Blazers saw an actual improvement in operating margin in their latest financial period. 37 of the companies listed remained profitable at operating level, but less so than a year earlier.
The longer-term view puts this into context. In 2015, 31 of the Trail Blazers improved operating margin. In 2016 the figure rose to 39, then in 2017 it dropped to 29. 2018 saw a further drop to 21, 2019 rallied slightly with 22 companies showing a gain, but in 2020 it declined again to 17.
So this year’s total of just nine Trailblazers recording an improvement in margin is the lowest number for at least seven years. When people use the phrase ‘pressure on margins’, this is what they are talking about.
LEAGUE TABLES
BMJ LEAGUE TABLES SPONSORED BY
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