BMF KPI REPORT For 12 months ending April 2013
BMF
KPI Report For the 12 months ending April 2014
Key Performance Indicators Benchmarks for the UK Builders Merchants Sector BMF Business Reporting
BMF KPI REPORT For 12 months ending April 2014 2013
Overview Sales and Profitability Up The BMF’s Key Performance Indicators Report for 2013/14 indicates how the trading performance of builders merchants fared over the twelve months ending April 2014 compared with the two previous years. The building materials market during the period of this report had been growing. The BMF Sales Indicators reported that for the 12 months ended April 2014
• Lightside merchants’ vehicle operating costs reduced slightly and were as expected lower than mixed and heavyside merchants. Heavyside merchants’ costs were the highest and saw an increase of 1.4 percentage points over last year. The following ratios are a selection from the full survey findings. They give a bench mark of how the merchanting sector performed.
compared with the previous 12 month period, total sales by merchants adjusted for inflation and differences in trading days had increased by 8%. This correlates closely with the 8.6 percentage point increase reported here. Private and public new housing had been the key drivers of construction growth in 2013 Q4 with balances of 20% and 32%, respectively. Building contractors had however reported activity drops of 13% and 15%, respectively, in housing repair and maintenance and non-housing repair and maintenance.
Methodology The BMF 2014 Key Performance Indicators Survey was carried out among BMF merchant member companies in mid 2014. Members’ returns covered the periods to their year ends that fell between 1 May 2013 and 30 April 2014. It should thus be noted that the results are not for the full 2014 calendar year.
The report shows that: • Trading Margins at 31% had dropped by 0.9 percentage points from last year. • Tough credit controls enabled Bad Debts as a proportion of credit sales to be kept in line with previous years. Debtor Days were kept at 55 days, the same as for the previous two years. • Total sales per employee increased by 3.5% over last year and by 3.2% over 2011/12. Gross profit per employee increased by 0.5% over last year and by 0.7% over 2011/12. These increases reflected continued improvement in efficiencies and increases in product prices. • Average payroll costs per employee rose by 2.5% compared to last year and by 0.7% compared to 2011/12. Salary and related costs as a %age of gross margin decreased by 0.1 percentage point compared to last year but were the same as in 2011/12.
The BMF Key Performance Indicator Report uses a core sample of participants that enables a true like for like comparison with previous years’ ratios. This core sample for 2014 has been further revised and enlarged from last year. This has caused the results for previous years to have changed from those stated in previous reports.
BMF KPI REPORT For 12 months ending April 2014
Sales Increase/Decrease
10.8%
Unadjusted sales were up
15.6% Percent Increase/Decrease
Percentage difference between total sales for current year and sales for the previous year
by 10.8%, a growth of
16 14
10.8%
10 8
2.2%
4 2 0
2012
2013
2014
31.0%
Percent Increase/Decrease
Trading Margins Gross Margins as a percentage of total sales
Gross margins decreased by 0.9 33
31.8%
points compared to the previous
31.9%
32
31.0%
30
% points 2013/14 v 2012/13
29
Percent Increase/Decrease
- 0
9
28
2013
2014
Sales from Stock
87.2%
year.
31
2012
Ex stock sales as a percentage of total sales
8.6 percentage points.
12
The proportion of ex-stock sales to total sales increased by 0.6 88
87.2% 86.8%
87
percentage points compared with 2012/13.
86.6%
% points 2013/14 v 2012/13
86
85
2012
2013
2014
+ 0
6
BMF KPI REPORT For 12 months ending April 2014 2013
Sales Direct
12.8%
to total sales decreased by 0.6 Percent Increase/Decrease
Direct sales as a percentage of total sales
The proportion of direct sales 14
13.2%
13.4%
percentage points compared with 12.8%
13
12
% points 2013/14 v 2012/13
11
10
2012
2013
6
Net profit after interest improved
Net profit after interest as a percentage of total sales
3.6
slightly by 0.5 percentage points.
3.4% 3.2%
Percent
3.4 3.2 3.0
% points 2013/14 v 2012/13
2.7%
2.8 2.6
2012
2013
+ 0
5
2014
Bad Debts
Bad debts as a proportion of credit sales remained the same
Bad debts as a percentage of credit sales
as 2012/13.
0.7
0.6% Percent
0.6%
- 0
2014
Net Profitability
3.2%
2012/13.
0.6%
0.6
0.5% % points 2013/14 v 2012/13
0.5
0.4
2012
2013
2014
0
0
BMF KPI REPORT For 12 months ending April 2014
Salaries as % of Gross Profit Salaries and related costs as a percentage of gross margin
a percentage of gross margin
50.5
49.8%
49.8%
50.0
Percent
49.8%
Salaries and related costs as
points over 2012/13.
49.5
48.9%
49.0
% points 2013/14 v 2012/13
48.5 48.0
2012
2013
1000’s
£172,303
£172,303 £167,036
165
% 2013/14 v 2012/13
155
2012
2013
+ 3
5
2014
Profitability of each employee
Gross Profit per Employee
increased by 0.5% over 2012/13.
55
£53,424
1000’s
54
£53,424
increased by 3.5% over 2012/13.
£166,563
160
Gross profitability of each employee
9
Sales by each employee
175 170
+ 0
2014
Sales per Employee Total sales by each employee
increased by 0.9 percentage
£53,053
£53,181 % 2013/14 v 2012/13
53
52
2012
2013
2014
+ 0
5
BMF KPI REPORT For 12 months ending April 2014 2013
Average Cost per Employee Salary and wages costs of each employee 1000’s
£26,630
27.0
The average payroll cost per
£26,437
£26,630
% 2013/14 v 2012/13 2012
2013
Transport Costs Overall
8.6%
2012/13.
8.2 8.0
7.8%
% points 2013/14 v 2012/13
7.8
2012
2013
- 0
1
2014
Mixed merchants’ transport costs
Transport Costs – Mixed
were marginally increased by 0.2 percentage points compared with
8.8
8.6%
8.6
Percent
all merchants decreased slightly by 0.1 percentage points over
7.6
8.4%
5
Road delivery costs overall for
8.4
Road transport costs for mixed merchants as a percentage of delivered sales
+ 2
2014
8.5%
8.6
Percent
8.5%
over 2012/13.
£25,990
26.0
25.0
Road Transport costs for all merchants as a percentage of delivered sales
employee increased by 2.5%
2012/13. 8.4%
8.4 8.2 8.0
% points 2013/14 v 2012/13
7.9%
7.8
2012
2013
2014
- 0
2
BMF KPI REPORT For 12 months ending April 2014
Transport Costs – Heavyside
costs rose marginally over
11.0
10.5%
10.5%
10.0
9.4%
2012
Transport Costs – Lightside
2013
+ 1
4
2014
Lightside merchants’ transport
7.5% 7.3%
7.5
costs reduced by 0.2 percentage points over 2012/13.
7.0
Percent
7.3%
% points 2013/14 v 2012/13
9.1%
9.5
9.0
Road Transport costs for all Lightside merchants as a percentage of delivered sales
2012/13 by 1.4 percentage points.
10.5
Percent
Road transport costs for Heavyside merchants as a percentage of delivered sales
Heavyside merchants’ transport
6.5
5.9%
% points 2013/14 v 2012/13
6.0
5.5
2012
2013
- 0
2
2014
Debtors outstanding were held
Debtor Days
steady for this second year
Trade debtor days outstanding
running.
60
Days
55
55
55
55
% points 2013/14 v 2012/13
55 days 50
2012
2013
2014
0
0
BMF KPI REPORT For 12 months ending April 2014 2013
The 15 ratios within this document are just highlights from the findings of the full BMF KPI Report which are available exclusively to BMF Members. To calculate your own company’s performance, BMF Members can obtain the KPI spreadsheet free of charge from the Business Guide section of the BMF Member-only website www.bmf.org.uk BMF The Builders Merchants Federation (BMF) is the UK trade association for builders, plumbers, heating and timber merchants and their suppliers representing over 460 companies in this sector. BMF members distribute over 12.5bn of building materials per annum from 2500 outlets around the UK.
Head Office 1180 Elliott Court, Coventry Business Park Herald Avenue, Coventry CV5 6UB Tel: 02476 854980 Fax: 02476 854981 Email: info@bmf.org.uk www.bmf.org.uk