NEWSROUND
Lords buys AW Lumb
Travis Perkins delivers strong platform for growth
Travis Perkins, saw revenue rise by 24% from £3.69bn to £4.58bn for the full year ended December 31 2021. The rise was 14.4% ahead of 2019.
Builders merchant group Lords has extended its reach northwards with the acquisition of independent builders merchant A W Lumb.
The total consideration is £23.1 million, payable in cash, consisting of £19.5 million due on completion and deferred consideration of £3.6 million payable in equal annual instalments over the next five years. It will be funded from Lords’ existing cash resources and debt facilities. The key senior
management from A.W. Lumb and its 77 employees will be joining the Lords Group.
Established in 1964, and family owned until a management buyout in 2017, A.W. Lumb has depots in Dewsbury and Tamworth. It has long been at the top of the BMJ Trailblazers League Tables for Sales & Profitabilty per head. Lords Group has also signed an exclusivity agreement for the potential acquisition of a Buildbase branch in Sudbury, Suffolk, which it plans to bring into its Hevey Building Supplies Limited subsidiary. The sale of the branch follows Huws Gray’s acquisition of Buildbase and Grafton Group’s other traditional merchanting businesses, the sell-off of which was a condition imposed by the Competition and Markets Authority.
The merchant group’s final year results also showed adjusted operating profit of £353m (including £49m of property profits) which was 19% ahead of 2019 and a massive 175% ahead of the pandemic-affected 2022. During the year the group saw the Wickes demerger go through and also sold off the Plumbing & Heating business.
Nick Roberts, Chief Executive
Officer, said: “2021 has been a year of significant operational and strategic progress for the Group, completing our portfolio actions and subsequently setting out our ambition to be the leading partner to the construction industry. The long-term fundamentals of our end markets
continue to be robust and the Group is well placed to invest in growth opportunities to create value for all of our stakeholders.” Overall Merchanting revenue was £3.82bn, up 24.8% versus 2020, and 3.3% ahead of 2019. Factoring in the 2020 branch closure programme, like-for-like revenue growth was 28.2% and 11.9% when compared to 2019. 2021 saw Toolstation achieve 20.2% revenue growth to £761m and has now more than doubled its revenue in the last three years. In the UK, a net 70 new branches were opened during the year.
IBMG acquires Cornish Fixings (Redruth) Ltd The Independent Builders
Merchant Group has bought Cornish Fixings (Redruth) Ltd (CFC), a one branch builders’ merchant in Cornwall. This acquisition continues IBMG’s strategy of developing its divisions through a combination of acquisition, new site
development and organic growth. Strategically it strengthens its south west division, extending RGB’s presence in Cornwall and providing a strong platform for further growth across the
Redruth area. CFC will join RGB and Jon Sawyer, CFC’s owner, will continue with the business working with Andy Gamble and Kevin Fenlon, RGB’s managing director and chief executive respectively, to grow RGB’s presence in Redruth, Cornwall. Gamble said: “We are delighted to welcome Jon and the Cornish Fixings team to the Group. We have much in common, so this is a strong and logical partnership. We are delighted to be able to strengthen the provision of our
services in the Redruth area, for the benefit of our customers.” Sawyer said: “We are excited to be joining RGB and look forward to working closely with Andy and the RGB team. I am confident that this acquisition will provide an excellent home for both our customers and our people.”
Grafton sees record performance in ‘transformational year’
Grafton Group plc has posted a 25% increase in revenue and a 68% increase in operating profit for the year ended 31 December 2021.
Revenue across the group was £2.1bn, with operating profits at £288.0m Following the sale of the Group’s Traditional Merchanting business in Great Britain to Huws Gray, the results for 2020 have been restated.
The 2021 results were slightly ahead of expectations, and included record contributions from Woodie’s, the Irish DIY
4
retailer, and Selco, as well as strong gains by the Chadwicks and Isero brands.
Chief Executive Officer Gavin Slark said: “2021 saw record profits, a step change to higher returning businesses following the divestment of our Traditional Merchanting business, exposure to a new growth platform in
the Nordics and increased focus on digital and sustainability opportunities.
“Our people have been a key differentiator in delivering safe and superior customer outcomes throughout the pandemic and in mitigating supply chain challenges at a time of resilient demand in the broader repair, maintenance and improvement and DIY segments in our markets. “Trading year to date has been encouraging and the outlook for 2022 is positive, supported by strong housing and RMI markets.”
www.buildersmerchantsjournal.net March 2022
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