Benchmark
ROBERT DYAS: SALES INCHING UP The Numbers
Sales £m Gross profi t £m
Pre-tax profi t £m Staff
Salaries £m
The Ratios Stockturn
120.0 16.4
Operating profi t £m 5.2 1.5 -2.0 0.7 5.1 2.3 -2.7 0.0 1,431 21.5
1,338 1,397 16.8 17.8
13/14 14/15 5.7 4.8
Gross margin % 15.6 16.4 Net margin %
15/16 5.3
13.7
13/14 14/15 15/16 16/17 17/18 %change 124.2 125.5 19.3 20.5
123.4 123.9 0.4 17.1 16.8 -1.7 -0.8 -0.9
n/a n/a
1,423 1,415 -0.6 21.8 22.0 0.6
16/17 17/18 %change 5.7 5.0
-12.3
Operating margin % 4.2 1.2 -1.7 0.6 4.1 1.8 -2.3 0.0 13.6 14.2
Staff costs/turnover 17.9
Return on capital % 35.6 15.6 -22.1 0.4 DIY Week index
13.9 13.6 -2.2 -0.6 -0.7
17.7 17.7 0.1 -9.3 -1
n/a
Robert Dyas has seen sales inching back up again in the past couple of years, which is encouraging in view of the fact that most of its stores are in high street locations, and we’re constantly being told bad news about high street footfall. The latest accounts show it slipping back into the red at operating and pre-tax levels, however. The stockturn fi gure looks impressive, but it’s based on a gross margin which clearly indicates that the cost of sales line in the accounts is loaded with more than the cost of goods for resale alone. Estimating the true gross profi t at £50m gives a gross margin of just over 40% and a stockturn of about 3.4 times, both of which sound a lot more realistic.
HOME BARGAINS: UNSTOPPABLE The Numbers
Sales £m Gross profi t £m
n/a n/a
2019 THE DIY MARKET SUPPLEMENT GARDINER HASKINS: WATCHING THE COSTS
The Numbers Sales £m
Operating profi t £m Staff
2013 2014 2015 2016 2017 %change 15.1 15.8
Gross profi t £m 6.3 6.6 1.6 1.9
Pre-tax profi t £m 1.5 1.7 135 135 2.9 2.8
Salaries £m
The Ratios Stockturn
2013 2014 2.2 2.3
Gross margin % 41.9 41.6 Operating margin % Net margin %
Staff costs/turnover
15.5 6.6 1.8 1.7
129 2.7
2015 2.0
42.5 10.4 11.7 11.8 17.4
15.1 14.2 -5.9 6.4 6.1 1.3 0.9 1.2 0.7
-5.1
-30.5 -35.4
127 118 -7.1 2.7 2.7
-2.5 -1.7
2016 2017 %change 2.0 2.0
42.4 42.8 0.9 8.4
9.9 11.0 11.1 7.7 19.5 17.7
Return on capital % 13.9 16.2 15.9 10.3 DIY Week index
6.2 -26.1 5.3 -31.3
18.2 19.0 4.5 6.5 -36.9 -73
Gardiner Haskins trades from just two stores: a huge multi-storey unit in central Bristol which majors on home interiors and furnishings, and a smaller store in Cirencester which has more of a DIY focus. It’s one of the oldest businesses covered by DIY Benchmark: the current company was incorporated in 1893. Sales slipped badly in the latest year, and although the company has grown its gross margin, the fi ve-year picture shows a steady decline in operating margins, so costs have been rising elsewhere. Staff headcount is are obviously being watched, but even so the staff costs are higher than average. The directors report states: “As a result of rising costs and changing shopping habits, the company will restructure its operations in 2018 to secure future profi tability.”
13/14 14/15 15/16 16/17 17/18 %change 1,277.3 1,472.4 1,602.9 1,869.2 2,143.3
15 377.6 445.8 498.3 578.5 677.2 17
Operating profi t £m 124.5 146.7 136.9 168.0 201.2 20 Pre-tax profi t £m 124.8 147.1 137.0 168.2 202.7 20 Staff
Salaries £m
The Ratios Stockturn
13/14 14/15 9.6 9.5
Gross margin % 29.6 30.3 Net margin %
15/16 7.4
31.1
Operating margin % 9.7 10.0 8.5 9.8 10.0 8.5 11.1 11.7 28.4 26.8
Staff costs/turnover Return on capital % DIY Week index
12.6 22.3
HOMEBASE: A MOUNTAIN TO CLIMB The Numbers
Sales £m Gross profi t £m 599.8 713.7 390.1
13/14 14/15 15/16 16/17 17/18 %change 1,415.8 1,408.8 1,360.1 1,732.5 1,081.7 661.6 642.0
n/a n/a
11,098 13,843 15,853 18,048 20,313 13 142.1 172.0 202.3 234.8 276.4 18
16/17 17/18 %change 7.1 8.3 16 30.9 31.6 9.0 9.0
9.4 9.5
12.6 12.9
2 4 5 3
22.5 22.2 -1 1136
Home Bargains continues its seemingly unstoppable rise, with sales up 15% in the latest year, and up nearly 70% over the past fi ve years. Only a small fraction of what it sells could be considered part of the DIY and home improvement market, but a small fraction of £2.1bn is still a lot of money. More to the point, it’s one of the out-of-town discount chains which is changing the face of shopping, drawing customers away from the high street, and absorbing their available impulse spending. Not a DIY retailer, then, but a retailer which is infl uencing the DIY market. And with the kind of growth, that kind of stockturn, and that kind of return on capital, its infl uence can only grow.
20 DIY WEEK THE DIY MARKET SUPPLEMENT
Operating profi t £m -14.1 16.8 42.3 -174.9 -662.1 n/a Pre-tax profi t £m Staff
-20.2 Salaries £m
The Ratios Stockturn
Gross margin % Net margin % 7.6 32.8 -185.6 -666.2 n/a
16,107 15,494 13,124 12,215 11,831 -6.9 213.4 200.6
179.8 256.0
13/14 14/15 3.6
3.5
Operating margin % -1.0 -1.4
15/16 3.5
223.6 n/a 46.7 45.6 44.1 41.2
Staff costs/turnover % 15.1 14.2 13.2 14.8 Return on capital % 5.0 DIY Week index
1.2 3.1 -10.1 -61.2 0.5 2.4 -10.7 -61.6 20.7
1.8 65.5 -69.8 -746.1 n/a
16/17 17/18 %change 3.1 2.9 -9.4 36.1 -6.6 n/a n/a n/a n/a
Neglected and under-funded by successive owners, and then almost crippled by the arrogance and stupidity of Bunnings, Homebase isn’t just a survivor – it’s a miracle it still exists. The unaudited 2016/17 fi gures cover a 16-month period, so year-on-year comparisons with the previous and following years’ numbers are meaningless, and the ratios are discouraging: stockturn down, gross margin down, staff costs sharply up. The restructuring specialist Hilco bought the business for a nominal £1 a year ago, and appointed ex- B&Q director Damian McGloughlin as CEO. A re-vamped Homebase store opened in Orpington, south-east London, at the start of the year, and initial feedback is encouraging – but they have a mountain to climb.
www.diyweek.net
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