MKM Posts Revenue Growth of 12%; Increases Market Share

• Continuing investment drives market outperformance and improved profitability.

MKM Building Supplies (MKM), the UK’s fastest growing independent builder’s merchant, is pleased to announce full year results for the year ended 30 September 2025.

Highlights: 

• Outperforming the market, increasing market share to 14.8% (FY2024: 13.3%)
  
  
• Revenue growth of 12% to £1,103.8m (FY2024: £986.2m)
  
  
• Growth driven by:
  
  o Organic growth across established branches
  
  o Continued development of newer branches
  
  o 7 new branches opened during the year, taking the total network to 139 branches (2024: 132)
  
  
• Strong performance underpinned by:
  
  o High levels of customer service
  
  o Breadth and availability of product range
  
  o Fast and reliable delivery
  
  
• Normalised EBITDA increased to £89m (2024: £77m)
  
  
• Continued investment in branch network and infrastructure

Kate Tinsley, CEO of M.K.M Building Supplies Limited, said: 

“MKM delivered a strong performance in 2025, continuing to outperform the market and growing both revenue and profitability despite ongoing challenging conditions. 

We opened seven new branches during the year and continued to invest in our network, our people and our customer offer, while maintaining the high levels of service and product availability that set MKM apart. 

While the market remains uncertain, with ongoing inflationary pressures and wider geopolitical factors impacting the supply chain, we are well positioned to manage these challenges.

Our focus remains on supporting our customers, investing in our branch network and delivering long‑term, sustainable growth through empowered, well‑supported local teams.”

Introduction: 

M.K.M Building Supplies Limited (MKM) again performed strongly during the year, continuing to outperform the market and increase market share. This performance was supported by prior investment in new branch openings, the continued development of recently opened branches and the Company’s ongoing focus on customer service and its local offer. This was achieved despite continued challenging market conditions. 

MKM is well positioned to benefit from any improvement in the market, underpinned by sustained investment in the business and the continued expansion of its branch network. This ongoing investment supports both operational capacity and the customer offer, ensuring the business remains resilient in the face of short-term market pressures. 

The market remains uncertain in the short term, with the macroeconomic impacts of the conflict in the Middle East translating into inflation in the price of building materials. The Government has maintained support for the housing sector, including efforts to accelerate planning and increase housing supply, but these measures will take some time to impact the market. 

Operations: 

The Company added a further 7 branches during the year, bringing the total network to 139 branches (2024: 132). These included a mix of new MKM branches and continued investment in specialist capabilities, including the expansion of Oceanair. 

MKM’s unique business model centres on identifying and partnering with the right local people. This approach ensures each branch delivers a tailored, local service while empowering teams to maximise opportunities within their area. 

Over recent years, the pace of expansion has remained strong, supporting MKM’s position as one of the UK’s largest independent builders’ merchants. The Company believes there remains significant opportunity to further grow the network over time. 

The wider business benefits from this scale through increased buying power, improved product availability and the sharing of best practice across the branch network and Central Support. 

The customer offer has also continued to evolve. Growth in specialist areas, including heating and ventilation through Oceanair, alongside continued development of the hire offer, enhances MKM’s ability to meet evolving customer needs. During the year, MKM also launched shopping through its app, building on existing account management functionality to enable easier ordering and strengthen day‑to‑day engagement with the branch network. 

The market for air source heat pumps continues to grow, driven by regulatory requirements in new build housing and supported by government incentives such as the Boiler Upgrade Scheme. MKM’s investment in this area positions the business to support customers as demand increases, while also attracting specialist talent and strengthening its training offer. 

Market: 

The market has remained challenging over the past year, with subdued activity driven by higher interest rates, reduced housing transactions and ongoing economic uncertainty.

Despite these conditions, MKM has continued to outperform the market, which saw modest growth of approximately 1.2%, while increasing its market share to 14.8%. 

The current macroeconomic impact of events in the Middle East has led to inflation in the price of building materials in the market. MKM is working with its suppliers to minimise the impact on its customers. The Government has maintained support for the housing sector, including efforts to accelerate planning and increase housing supply, a positive step for the market. 

Finance: 

The Company delivered strong financial performance during the year, with revenue increasing by 11.9% to £1,103.8m (2024: £986.2m), driven by organic growth, branch expansion and the continued development of newer sites. 

The business maintained strong gross margins despite ongoing pricing pressures across the market. This reflects MKM’s continued focus on customer service, product availability, competitive buying and the strength of its local operating model. 

Normalised EBITDA increased to £89m (2024: £77m), demonstrating improved profitability as branches mature and operational performance strengthens. 

Group net finance debt reduced to £243m (2024: £247m), reflecting positive cash generation during the year. The Group also strengthened its liquidity position, increasing its debt factoring facility and securing an additional working capital facility to support future growth. The Group’s senior credit agreement was extended to July 2028. 

Sustainability: 

The Company continues to recognise the importance of climate change and remains committed to reducing emissions over time. 

MKM reports against the TCFD framework and has strengthened its approach through dedicated ESG leadership and governance. 

Key initiatives include the continued rollout of renewable electricity across the branch network, investment in low-emission and electric equipment, and the introduction of more sustainable operational practices. 

The business is also exploring new technologies, including alternative fuel vehicles and battery-powered equipment, to further reduce its environmental impact. 

Outlook: 

The outlook remains challenging to predict in the near term, with continued pressure from inflation, particularly across product and transport costs, alongside wider geopolitical uncertainty, including the impact of the Middle East conflict on global supply chains. 

However, MKM remains well positioned to navigate these conditions. The business has maintained capacity to support growth, while continuing to deliver high levels of customer service. 

The market fundamentals of a housing shortage and an ageing estate in need of repairs, maintenance and improvement support the view that the sector has significant potential to grow, although the near-term outlook is challenging to predict. MKM is well placed to continue winning market share and grow its business. 

The Company will continue to invest in its branch network, its people and its customer offer, while remaining focused on local service and operational excellence. 

MKM also launched its first eCommerce mobile app during the year, giving customers another quick and easy way to browse, order and manage their account. It’s designed to work in the same way customers use their local branch, whether that’s ordering from the van between jobs or planning ahead. 

MKM is therefore cautiously optimistic about the year ahead, underpinned by the strength of its model, its market position and its continued ability to outperform. 

Looking ahead, the Company will continue to support customers, invest in its branch network and create a business where local teams are empowered, supported and able to perform at their best. 

Source : MKM

Image : MKM

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