THE WHOLESALE MARKET SUPPLEMENT 2019 HOME HARDWARE SCOTLAND: CONSISTENT
The Numbers Sales £m
Gross profi t £m
2013 2014 2015 2016 2017 8.4
8.9 %change 1.6 1.7 1.8 1.3 1.1
Operating profi t £k 99.0 103.0 69 -12 32 Pre-tax profi t £k Staff
84 81.0 41 -31 18 37 39 37 39
41 Salaries £m
The Ratios Stockturn
Gross margin % 0.7
2013 2014 2.3 2.3 19.7 19.6
Operating margin % 1.2 1.2 Net margin %
Staff costs/turnover % Return on capital % DIY Week index
12.1 21
1.0 0.9 8.1 8.2 10.7
2015 2016 2017
8.5 8.7 8.4 -3.8 -16.3 n/a n/a
5.1s 0.7 0.8 0.8 0.8 -2.0 %change
2.4 2.4 2.6 5.5 20.8 14.5 12.6 -13.0 0.8 0.5
-0.1 0.4 n/a -0.4 0.2 n/a
9.2 9.3 9.5 2.0 5.2
-4.1 2.3 16 -8 -1 -4
Jim Ferguson, one of the founder members of Home Hardware Scotland in 1983 and very much the driving force in the business, died in July 2018 at the age of 71 after a short illness. The family retail business, Wright Hardware, is now being run by his daughter Fiona and son Brian, who have also both become more involved in the management of Home Hardware Scotland. The company is a dealer-owned wholesaler which supplies only its own members, and which therefore can grow only by increasing sales to existing members or by recruiting new members. This probably explains its sales performance in recent years: very consistent, but showing very little
n/a Sales £m Gross profi t £m
Benchmark
HOME HARDWARE SW: AWARD WINNER The Numbers
2013 2014 2015 2016 2017
Operating profi t £k 455 558 463 230 60 Pre-tax profi t £k 395 495 388 160 -22 Staff
Salaries £m
The Ratios Stockturn
Gross margin %
2013 2014 5.4 5.3 19.6 19.7
Operating margin % 1.7 1.9 Net margin %
Staff costs/turnover %
1.5 1.7 10.7 10.4
2015 %change
26.7 29.4 30.6 29.7 29.7 -0.1 5.2 5.8 6.2 6.0 6.0 0.0 -73.9 n/a
149 153 164 167 163 -2.4 2.9 3.1 3.4 3.4 3.5 0.8
4.9 5.2 4.7 20.3 20.2 20.2 1.5 0.8 0.2 1.3 0.5
Return on capital % 20.2 22.3 12.2 4.8 -0.7 DIY Week index
29 100 30 -11 0
Like its Scottish namesake, Home Hardware SouthWest is owned by its members, and depends largely on recruiting new members to join the existing 400-plus to generate sales growth. Overall it is the sixth largest business covered by this survey, and is ranked the third largest general hardware and housewares wholesaler after Stax and Decco. The company is well regarded by its customers: in the annual Housewares Innovation Awards, it was named Britain’s Best Wholesaler in both 2017 and 2018. Financially, everything was working well until 2015/16, when sales dipped but operating costs rose, and although the company has actually increased its gross margin, the operating and net margins have
2016 2017 %change -8.9 0.1
-0.1 11.2 11.5 11.6
-73.9 n/a 0.9 n/a
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