Benchmark Sales £m Gross profi t £m
Operating profi t £k Pre-tax profi t £k Staff
Salaries £m
The Ratios Stockturn
Gross margin %
2013 2014 2015 2016 2017 21.3 23.3 21.0 19.8 19.5
957 864
69 73 74 69 65 1.6 1.6 1.7 1.6 1.6
2013 2014 2015 2016 2017
5.2 6.3 5.2 5.5 3.7 10.7 12.5 10.5 11.3 10.4
Operating margin % 4.5 4.8 2.0 3.2 1.7 Net margin %
Staff costs/turnover % Return on capital % DIY Week index
18.2
4.1 4.5 1.8 3.0 1.6 7.3 6.7 8.1 8.0 8.2 19.1 6.7 9.7 5.1
-183 281 -102 -100 -10
Handy Distribution is a specialist distributor of garden machinery, stocking Bosch, Flymo, Garden Groom, Karcher, McCullock, Ryobi, Webb and Westwood among other brands. It supplies around 200 garden machinery dealers, as well as running a retail outlet of its own. The garden machinery market is notoriously risky, thanks to unpredictable British weather, and consistently one of the lowest in the industry. Chairman Derek Belcher, who the chair to his son Simon, who had been MD since 2009.
NEWTON HALE: GROWING FAST The Numbers
Sales £m
Gross profi t £m 2.2 2.5 Operating profi t £k 39 305 Pre-tax profi t £k -47 242 Staff
65 Salaries £m
The Ratios Stockturn
Gross margin % 2013 2014
670 631
1.4 1.4
66 66 1.3
2015
HANDY DISTRIBUTION: STILL PROFITABLE The Numbers
2019 THE WHOLESALE MARKET SUPPLEMENT HARRISON & CLOUGH: IN DIFFICULTIES
%change -1.6
2.3 2.9 2.2 2.2 2.0 -9.4 1,123 425 636 341 1,046 380 596 320
-46.4 -46.3 -5.8 1.0
%change -32.5 -7.9
-45.5 -45.4 2.7
-47.4
The Numbers Sales £m
Gross profi t £m
Operating profi t £k Pre-tax profi t £k Staff
Salaries £m
The Ratios Stockturn
Gross margin %
Operating margin % Net margin %
2013 2014 2015 2016 36.2 37.1 30.7 27.6 7.5
7.6 4.9
2017 28.7
5.3 5.5
501 231 -2,713 -941 -490 336
200 194 170 155 5.2 5.1 4.9 3.9
2013 2014 2015
18 -2,990 -1,027 -798 148 3.7
3.2 3.1 3.5 3.3 3.1 20.7 20.5 16.0 19.0 19.1 1.4 0.9
0.6 -8.8 -3.4 0.0 -9.7 -3.7
4.6 4
%change 3.9 4.1 n/a n/a
-4.5 -4.3
2016 2017 %change -4.5 0.2 n/a
-1.7
Staff costs/turnover % 14.3 13.6 15.8 14.1 13.0 Return on capital % DIY Week index
0.3 -80.1 -39.3 -42.8 5 -528 -115
-21
fastenings, although it also sells hand tools, power tool accessories and
2013 2014 2015 2016 2017 7.7
8.3 8.8 11.5 14.7 2.7
%change 27.7
3.4 3.7 8.9 869 643 848 652
-26.0 -23.1
84 103 22.6 1.7 2.1
20.1 2016 2017 7.6 7.7 6.6 8.1 9.0
Operating margin % 0.5 3.7 7.6 7.5 4.4 Net margin %
Staff costs/turnover %
%change 12.1
28.6 29.9 31.2 29.5 25.2 -14.7 -42.1 -39.8 -6.0
-0.6 2.9 7.2 7.3 4.4 18.7 17.0 15.1 14.8 13.9
Return on capital % -7.8 37.8 92.5 94.4 76.7 -18.8 DIY Week index
-15 222 294 1,925 1,092
Birkenhead-based Newton Hale is one of the smallest companies covered by this survey, but it’s also one of the fastest-growing: sales growth over in the latest year. It sells hand tools, power tools, builders hardware and Wales. As well as growing fast, Newton Hale also consistently achieves one of the highest gross margins in the wholesale sector, coupled with industry – although it looks as though this is being steadily brought under control – and thanks to its very modest capitalisation (less than
18 DIY WEEK WHOLESALE MARKET SUPPLEMENT
NORTH WEST TOOLS: UNDER PRESSURE The Numbers
13/14 14/15 15/16 16/17 Sales £m Gross profi t £m
Operating profi t £k Pre-tax profi t £k Staff
Salaries £m
The Ratios Stockturn
Gross margin % 17/18
12.9 16.5 17.3 18.8 17.9 2.2 2.6 2.7 2.9 2.5 735 708 809 925 505 734 705 785 883 493 49 52 51 51 47 1.0 1.3 1.3 1.3 1.2
13/14 14/15 15/16
4.5 3.9 4.1 4.9 3.8 17.3 15.9 15.7 15.6 14.1
Operating margin % 5.7 4.3 4.7 4.9 2.8 Net margin %
Staff costs/turnover %
-2.8 n/a.2 -7.9 n/a
%change -4.9
-13.8 -45.4 -44.2 -7.8 -9.4
16/17 17/18 %change -21.2 -9.4
5.7 4.3 4.5 4.7 2.8 8.0 7.6 7.6 7.1 6.7
218 465 90 212 -53
-42.6 -41.3 -4.7
Return on capital % 19.5 17.7 18.2 21.0 11.5 -45.3 DIY Week index
Based in Wigan, North West Tools was founded in 1963 and sells professional quality power tools, hand tools and consumables, with next-day delivery across the UK. It saw a sustained surge in sales between 2014 and 2017, gaining around 50% before falling back slightly in the 2017/18 accounts. However, this sales growth was accompanied by a steady decline in gross margin, clearly indicative of the intense price competition that prevails in the professional power tool market thanks to the price transparency of internet retailing. That said, it’s interesting that North West was managing sales of less than £13m a few years earlier. And although margins have
www.diyweek.net
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
