Benchmark
RETURN ON CAPITAL: HEALTHY RETURNS
1. Topps Tiles 2. B&M
3. Al Murad 4. The Range 5. Screwfi x
6. Home Bargains 7. Wickes
8. Charlies Stores 9. Gardiner Haskins 10. Axminster 11. Robert Dyas 12. Trago Mills 13. Taskers 14. B&Q
15. Tile Giant 16. Wilkinson 17. Argos
18. Homebase 19. Toolstation 20. Leekes
5yr average 474.2%
41.1% 39.0% 36.4% 24.9% 24.4% 18.3% 15.3% 12.6% 5.3% 4.1% 2.8% 2.7% 2.3% 0.4% -3.6% -7.6%
-150.7% n/a n/a
Source: DIY Week analysis of fi led company accounts T
opps’ extraordinary return on capital refl ects the fact that until fi ve years ago, the shareholders’ funds were negative. In 2013/14
it moved out of the red with an asset value of less than £1m but a net profi t of £16.7m, hence the colossal ROC in that year. Since then it has steadily come down to a rather less astronomical fi gure, but the 47.6% recorded in its latest accounts is still the best of any retailer in the Benchmark survey, and by a considerable margin. Furthermore, this table shows that whatever the state of DIY sales, a lot of companies in this market are making a lot of money for their shareholders. B&M, Al Murad, The Range, Screwfi x, Home Bargains, Wickes, Charlies and Gardiner Homecare have all shown that they can deliver double-digit returns year after year. And while
16 DIY WEEK THE DIY MARKET SUPPLEMENT
Axminster, Dyas, Trago Mills, Taskers and B&Q can only manage a single- fi gure average, they are still generating a shareholder return – albeit with some ups and downs along the way. DIY Week’s analysis shows that only three companies at the foot of the table have recorded a negative fi ve-year average: Wilko, Argos, and of course Homebase. We haven’t been able to calculate
a fi ve-year average for Toolstation, since it showed a negative asset value in 2013 and 2014; but its results over the past three years suggest it should be very close to the top of the table. And as we have already said, Leekes’s latest accounts show a massive £2.66m revaluation loss following the closure of the Coventry store, which would have made a nonsense of the fi ve-year average. Prior to that, however, the company seemed to be on a steady upward path, with successive ROC fi gures of -10.6%, -1.0%, 3.8% and 4.2%.
www.diyweek.net
Latest year 47.6%
38.9% 30.1% 29.8% 30.0% 22.2% 21.6% 11.6% 6.5% 9.2% -9.3% 0.9%
-12.9% 4.3% -4.9% 10.9% -25.4% -746.1% 47.4% n/a
- 1 year 72.2%
-2 years 113.9%
- 3 years -4 years 157.6% 1,980.0%
39.4% 38.0% 45.2% 43.8% 35.7% 41.1% 56.8% 31.4% 45.2% 30.0% 40.3% 36.7% 26.4% 25.4% 22.6% 20.3% 22.5% 22.3% 26.8% 28.4% 20.7% 14.5% 18.8% 16.0% 13.6% 19.5% 17.6% 14.4% 10.3% 15.9% 16.2% 13.9% -23.9% 0.4%
24.6% 6.5% 10.1% -22.1% 15.6% 35.6%
2.5% 2.9% 3.9% 3.6% 0.4% 4.9%
8.3% 14.0% 3.7% -1.5% 0.4% 3.2%
-14.0% 7.8% 6.3% 7.1% -61.6% 3.5% 14.2% 15.0% -3.5%
-69.8% 67.1% 4.2%
-19.0% 6.8% 3.2% 65.5%
131.7% 3.8%
1.8% n/a
-1.0%
-5.0% n/a
-10.6%
2019 THE DIY MARKET SUPPLEMENT
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