Benchmark SCREWFIX: RELENTLESS
The Numbers Sales £m
Gross profi t £m
13/14 14/15 15/16 16/17 17/18 %change 665.3 835.6 1,057.4 1,306.0 1,527.1 16.9 307.6 381.6
481.3 575.1 667.7 16.1
Operating profi t £m 45.0 61.4 90.0 117.5 170.2 44.9 Pre-tax profi t £m Staff
Salaries £m
The Ratios Stockturn
Gross margin % Net margin %
45.3 64.8 91.1 118.4 171.5 44.8 5,442 6,656 87.9 112.4
13/14 14/15 2.3 2.6 46.2 45.7
Operating margin % 6.8 7.4 6.8 7.8
Staff costs/turnover 13.2 13.4 Return on capital % 20.3 22.6 DIY Week index
15/16
2.8 2.7 45.5 44.0 8.5 9.0 8.6 9.1 13.0 12.4 25.4 26.4
1.1
6,274 9,486 10,797 13.8 137.5 162.6
184.5 13.5
16/17 17/18 %change 2.8
43.7 -0.7 11.1 11.2
12.1 -2.9 30.0 524
13.6
Screwfi x continues its relentless roll-out of new branches. Accounts for the year to January 31 2019 are not yet fi led, but headline data from parent company Kingfi sher reports sales up 10.3% to £1,671m, with like- for-like sales up 4.1%. Overall digital sales grew 19%, with mobile up 44% and click and collect up 23%. 50 new outlets opened during the year, taking the total to 627, and the target has been raised from 700 stores to 800. 2019 plans include a move into the Republic of Ireland as well. Stockturn is low but steadily improving, with a fourth distribution centre opened in Lichfi eld last year; gross margin is under pressure but still very strong, and operating margin and staff costs are among the best in class.
TILE GIANT: SALES GAIN SLOWS DOWN The Numbers
Sales £m Gross profi t £m
Pre-tax profi t £m Staff
Salaries £m
The Ratios Stockturn
Gross margin % Net margin %
Operating profi t £m 1.0 1.0
23.9 23.8
2019 THE DIY MARKET SUPPLEMENT TASKERS: STRATEGIC REVIEW
The Numbers Sales £m
13/14 14/15 15/16 16/17 17/18 %change 16.9 17.3
Gross profi t £m 6.6 6.9
Pre-tax profi t £m Staff
Salaries £m
The Ratios Stockturn
Gross margin % Net margin %
19.1 8.1
Operating profi t £m 0.3 0.9 0.6 0.3 0.2 0.8 0.5 0.1 226 211 3.7 3.5
236 4.2
Operating margin % 1.9 1.1
13/14 14/15 2.2 2.1 39.2 39.9 5.3 4.5
Staff costs/turnover 21.8 20.2 Return on capital % DIY Week index
15/16 1.7
42.6
20.8 20.5 -1.5 9.0 8.0 -1.1 -1.3
-11.3 n/a n/a
265 244 -7.9 4.7 4.4
41.5 -6.1
16/17 17/18 %change 1.8 2.5 43.3 38.9
-10.0 21.9
3.4 1.3 -5.4 n/a 2.6 0.2 -6.5 n/a 22.5 21.5 -4.7
3.7 14.0 8.3 0.4 -12.9 n/a -20
After several years of strong growth, Taskers attributed the 1.5% drop in sales in 2017/18 to the eff ect of Brexit and austerity hitting consumer confi dence and disposable income, exacerbated by a large fi re next door to the Aintree store which caused £1m of damage. A strategic decision to focus on growth areas and strip out loss-making categories resulted in £676,000 of exceptional costs, but the company is forecasting a signifi cant increase in profi ts in 2019/20 and beyond. Looking at the fi ve-year averages, Taskers is middle ranked on most ratios, with higher- than average staff costs and lower-than-average stockturn – but it has also consistently outperformed its (much) bigger DIY rivals in terms of sales growth, arguably the single most important ratio we track.
2013 2014 2015 2016 2017 %change 42.1 47.7 52.9 54.4 55.1 1.3 22.1 26.5 26.5 30.1 29.1 -3.3 0.8 1.0 -1.7 -0.6 -66.2 0.8 1.0 -1.7 -0.6 -66.2
429 524 532 583 562 -3.6 9.4 10.0 11.6 12.6 12.9 2.1
Operating margin % 2.3 2.3
2013 2014 3.3 4.2 52.3 55.6 1.7 1.7
Staff costs/turnover 22.4 21.1 Return on capital % 7.1 DIY Week index
2015
4.4 3.5 50.1 55.2
2016 2017 %change 4.0
52.7
14.7 -4.5
1.9 -3.0 -1.0 -66.6 1.9 -3.0 -1.0 -66.6 21.9 23.2
23.4 0.8
6.3 7.8 -14.0 -4.9 -64.9 -13
Travis Perkins subsidiary Tile Giant seems to have had a tough time in the latest two years for which accounts have been fi led. Sales still rose, but the rate of sales growth slowed down considerably; gross profi t declined after several years of strong growth; and the chain has now been recording losses at operating and pre-tax level for two consecutive years. On the plus side, the stockturn improved in 2017 after a dip the previous year, and the gross margin of 52.7% was still one of the best in the sector. Like its bigger rival Topps, Tile Giant spends a lot on salaries – they must both be wondering how the smaller Al Murad chain can continue to grow its share of the tile market while maintaining much lower staff costs.
22 DIY WEEK THE DIY WEEK MARKET SUPPLEMENT
TOOLSTATION: EVERYDAY LOW PRICING The Numbers
Sales £m Gross profi t £m Operating profi t £m Staff 225.8
Pre-tax profi t £m 9.5 15.1 1,646 1,961 25.3 28.7
Salaries £m
The Ratios Stockturn
Gross margin % Net margin % 2013 2014
17.2 17.2
64.6 78.8 91.9 106.4 123.5 10.3 15.4
2,273 32.9
2015
2013 2014 2015 2016 2017 %change 163.8 196.5
257.9 300.4 16 16
18.8 21.5 14 18.8 21.5 14 2,491 2,890 16 38.9 47.8 23
3.0 3.0 2.9 2.8
Operating margin % 6.3 7.8 7.6 7.3 5.8 7.7 7.6 7.3
Staff costs/turnover % 15.5 DIY Week index
2016 2017 %change 2.4
39.4 40.1 40.7 41.3 41.1 7.2 7.2
14.6 14.6 15.1 15.9
Return on capital % 76.6 -2943.8 131.7 67.1 47.4 281
(16) (0) (2) (2) 6
(29)
Toolstation is the third fastest growing company listed in Benchmark, with sales nearly doubled in fi ve years. 40 new branches opened in 2017, and another 40 in 2018, with sales in that year up 18% (11.4% LFL). The company has an everyday low prices policy, and the gross margin is signifi cantly lower than Screwfi x, but the staff costs are signifi cantly higher than Screwfi x, leading to a lower operating margin. 2018 saw 4,000 products added to the range, contributing more than £25m in sales, with more lines available for next-day delivery or dropship. The year also saw the launch of a trade credit card, a new epos system, a new website, a third distribution centre, and more expansion in France and Holland.
www.diyweek.net
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