‘They Said We’d Be Bust In 3 Months’: 30 Years Of MKM

With turnover set to reach £1.1 billion this year, MKM, the UK’s proper independent builder’s merchant, has grown from six in a modest 5,000 sq ft unit in Hull in 1994 to 135 branches plus specialist business Oceanair. As the merchant marks its 30th anniversary this October, its story is one of resilience, innovation and people-first leadership — but it also points to where the merchant sector is heading next.

Image : Andy Beet, Pete Murray, Richard Taylor, Janet Murray and David Kilburn

Image : Recreation of Central Support image, 30 years later

Image : Recreation of Central Support image, 30 years later

MKM Founder David Kilburn was 50 when he was made redundant. Instead of stepping back, he saw the moment as an opportunity. “When redundancy happens, it’s always a bit of a shock – but you’ve just got to dust yourself off,” he recalls. “I’d run a business before, and I had strong relationships across Hull. There was never a grand vision for hundreds of branches – it all began with one site. But we were determined to make it the best.”

That first branch had no yard, fleet or heavy-side capability. The team of six — including co-founder Peter Murray, who David describes as ‘the best salesperson in Hull at that time’— celebrated every order with the clang of an old fire bell. “We knew things were changing when it became so constant we’d have needed someone standing there all day just to ring it,” David laughs.

What those early months lacked in resources they made up for in determination. Banks turned them down and competitors told suppliers they’d be bust within three months. “One supplier gave us six months to pay,” David says. “That kind of faith you never forget. Loyalty goes both ways, and those relationships became the foundation of MKM.”

Image : MKM CEO, Kate Tinsley

The ownership model

It was a decision a year later that transformed MKM from a flourishing single-branch into a growing network. David offered a trusted colleague a 25% stake to run MKM’s second branch in Driffield. Soon after, Scarborough and Grimsby followed.

“It was like The Bush Telegraph,” David remembers. “Everyone was phoning each other to see what was happening. That ownership model became the heartbeat of our business.”

The Branch Director model remains MKM’s defining feature. Directors have real autonomy and a financial stake in their branch, deciding everything from stockholding to vehicles and credit terms. “It’s what makes us different” adds CEO Kate Tinsley, “Directors make decisions in real time, based on what’s right for their community. That keeps us close to customers and creates real loyalty.”

Culture and competitiveness

Despite MKM’s growth, the culture has endured. Its annual awards night sums it up perfectly: when Branch of the Year is announced, every Director stands to applaud. “Of course, there’s competitiveness,” David explains. “Each branch wants to be the best. But there’s also huge respect. Everyone knows how hard it is, and that respect drives the whole business forward.”

CEO Kate Tinsley agrees: “That competitive edge is one of our greatest strengths. Branches don’t just want to win though – they want to learn. If someone else is doing something better, people pick up the phone and ask questions. That’s how we keep raising the bar.”

For Andy Beet, an original member who was just 26 when he joined, it has always been about the people. “The camaraderie was real. Those little wins we had back then felt huge. When you give people responsibility, they live for it. That’s why the model works.”

That sense of loyalty has created deep, lasting customer relationships too. Andy recalls: “I’ve been best man at a customer’s wedding. That kind of connection isn’t something you find everywhere. It goes beyond business — it’s built on trust.”

That commitment to people extends into the wider community too. Over 30 years, MKM has raised more than £5 million for local charities and causes through fundraising, sponsorships and donations — proof that “doing the right thing” has always meant more than business alone.

Image : MKM charity bike ride 2024

Image : Central Support Christmas Bus 2022

Image : MKM Plymouth charity event

Facing industry change

The merchant sector has changed dramatically in three decades, and MKM has adapted with it. Customers now expect modern branch environments, showroom-quality displays, and digital convenience alongside traditional trade counter service.

“When I joined in 2020, our digital offer was almost non-existent,” Kate says. “Now we’re building a platform that will in time outperform competitors. Hyper-personalisation, AI-driven guided shopping, better curation to help customers buy greener and reduce waste – this is where the sector is going. Branches of the future will integrate seamlessly with digital, offering better delivery tracking, rapid fulfilment and more sustainable solutions.” 

Big changes, same values

Over 30 years, MKM has evolved while staying true to its culture. In 2006, co-founder Peter Murray sold his shares, marking a significant turning point for the business. In 2017, private equity backing from Bain Capital brought fresh investment and further fuelled expansion.

“Lots has changed and yet nothing has changed,” says David. “Pete and I still sit next to each other at Hull City, and we like to think we’ve made good friends along the way. Treating people as we’d like to be treated ourselves — that’s always been our philosophy.”

Sustainability and innovation

Sustainability is also moving to the forefront. In April, MKM received a Silver EcoVadis Medal, placing it in the top 15% of companies assessed globally for ESG performance. The company’s new Cheltenham branch is a showcase for what’s possible, built to BREEAM Excellent standards and operating at net zero for energy use.

And in July this year, MKM became the first merchant to launch bulk bags made from 100% recycled, fully recyclable material. Developed with Centurion Industrial Packaging, the new bags replace industry-standard 30% recycled content with 100% recycled polypropylene — from the stitching to the labelling. With 65,000 bags distributed each month across MKM’s 135 branches, the shift could see more than 800,000 recycled bags in use each year.

“None of what we do is about ticking boxes — it’s about leading the industry forward,” says Kate. “It’s better for customers, better for compliance, and better for the planet.”

‘Doing the right thing’ is a philosophy that runs through the business from product strategy to customer service and community impact.

Since Kate became CEO in 2020, MKM has grown from 73 branches to 135 plus Oceanair, and turnover has more than doubled. The target now is 250 branches within the next decade, with a turnover set to match the ambitious growth plans.

But Kate is clear: “We’re a collection of local businesses, so the big national number isn’t what excites me. What matters is being number one in every local market we serve. That’s when you know you’re making a real difference.”

For David, the legacy is simple: “Size and scale mean nothing if you lose sight of your values. We always said everyone is welcome here, and that culture is my proudest achievement. Passionate people doing the right thing — that’s what it’s all about.”

Source : MKM

Images : MKM

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