BMF KPI Report 2013

BMF KPI REPORT For 12 months ending April 2013

BMF

KPI Report For the 12 months ending April 2013

Key Performance Indicators Benchmarks for the UK Builders Merchants Sector BMF Business Reporting

BMF KPI REPORT For 12 months ending April 2013

Overview

Methodology

Increased Efficiency and Profitability in a Slow Market

The BMF 2013 Key Performance Indicators Survey was carried out among BMF merchant member companies in mid 2013. It represents national findings from

The BMF’s Key Performance Indicators Report for 2012/13 indicates how the

financial year returns between 1 May 2012 and 30 April 2013.

trading performance of builders merchants fared over the twelve months ending April 2013 compared with the two previous years.

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

Although the UK had emerged from recession the housing market, measured

sample for 2013 has been revised and enlarged from last year with the result that

by house moves, was only starting to recover. Unadjusted sales increased by

changes have occurred to the reported ratios of previous years.

4.2% over 20011/12 but pressure continued on margins which declined by 0.4 percentage points over 2011/12 but at a reducing rate. Net profitability increased slightly however by 0.2 percentage points over 2011/12.

The report shows that: • Tough credit control enabled Bad Debts as a proportion of credit sales to be kept in line with just a 0.1 percentage point increase over last year. 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 6.4% over 2010/11. Gross profit per employee increased by 2.1% over last year and by 3.2% over 2010/11. These increases reflected increased efficiencies in the face of reduced staff numbers and increases in product prices.

• Although average payroll costs per employee rose by 0.3% compared to last year and by 1.5% compared to 2010/11, salary and related costs as a %age of gross margin decreased by 0.8 percentage point and by1.5% percentage points respectively.

• Vehicle operating costs increased for most merchants by 0.2 percentage points over last year but although lightside merchants’ vehicle operating costs were as expected lower than mixed and heavyside merchants, they faced a higher rate of cost increase at 0.5 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.

BMF KPI REPORT For 12 months ending April 2013

Percentage difference between total sales for current year and sales for the previous year

4.2%

Percent Increase/Decrease

Sales Increase/Decrease 5

4.2% 3.9%

3 2 1 0

Percent Increase/Decrease

Trading Margins

28.9%

29.8% 30

2012

2013

Gross margins decreased by 0.4

29.3% 28.9%

28 27

% points 2012/13 v 2011/12

26

Percent Increase/Decrease

- 0

4

25

2012

2013

Sales from Stock

85.1%

points compared to the previous year.

29

2011

Ex stock sales as a percentage of total sales

4.2% on the previous year.

4

2011

Gross Margins as a percentage of total sales

Unadjusted sales were up by

5.2%

6

The proportion of ex-stock sales to total sales decreased by 0.6 percentage points compared with

87

2011/12.

86.1% 85.7%

86

85.1% 85

2011

2012

2013

% points 2012/13 v 2011/12

- 0

6

BMF KPI REPORT For 12 months ending April 2013

Sales Direct

14.9%

to total sales increased by 0.6 Percent Increase/Decrease

Direct sales as a percentage of total sales

The proportion of direct sales percentage points compared with

16

14.9% 15

14.3% 13.9%

14

% points 2012/13 v 2011/12

13

2011

2012

Net Profitability

6

2013

2.9%

3.0

Percent

2.8

2.7%

slightly by 0.2 percentage points.

2.7%

2.6 2.4

% points 2012/13 v 2011/12

2.2 2.0

2011

2012

+ 0

2

2013

Bad Debts

Bad debts as a proportion of credit sales increased marginally

Bad debts as a percentage of credit sales

by 0.1 percentage points.

0.7

0.6% Percent

0.6%

+ 0

Net profit after interest improved

Net profit after interest as a percentage of total sales

2.9%

2011/12.

0.6%

0.6

0.5% % points 2012/13 v 2011/12

0.5

0.4

2011

2012

2013

+ 0

1

BMF KPI REPORT For 12 months ending April 2013

Salary Costs

Salaries and related costs as

Salaries and related costs as a percentage of gross margin

45.4%

a percentage of gross margin reduced by 0.8 percentage

45.4

Percent

44.7%

45.6

45.5%

points over 2011/12.

45.2 45.0

44.7%

44.8 44.6

2011

2012

- 0

8

2013

Sales per Employee Total sales by each employee

% points 2012/13 v 2011/12

Sales by each employee increased by 3.5% over 2011/12.

200

£195,194

£195,194

1000’s

195

£188,629 190

£183,539

% 2012/13 v 2011/12

185 180

2011

2012

5

2013

Profitability of each employee

Gross Profit per Employee Gross profitability of each employee

+ 3

increased by 2.1% over 2011/12. £56,445

57

56

1000’s

£56,445

£55,261 55

£54,697

% 2012/13 v 2011/12

54

2011

2012

2013

+ 2

1

BMF KPI REPORT For 12 months ending April 2013

Average Cost per Employee Salary and wages costs of each employee

25.5

£25,232

£25,157

£25,232

24.5

% 2012/13 v 2011/12 2011

2012

Percent

3

Road delivery costs overall for all merchants rose slightly by 0.2

9.0 8.8

+ 0

2013

Transport Costs Overall

8.3%

over 2011/12.

£24,852

24.0

Road Transport costs for all merchants as a percentage of delivered sales

employee increased by 0.3%

1000’s

25.0

The average payroll cost per

percentage points over 2011/12.

8.6%

8.6

8.3% 8.4

% points 2012/13 v 2011/12

8.1% 8.2 8.0

2011

2012

+ 0

2

2013

Transport Costs – Mixed

Mixed merchants’ transport costs

Road transport costs for mixed merchants as a percentage of delivered sales

percentage points compared with

8.8%

2011/12.

8.8

Percent

8.3%

9.0

were marginally increased by 0.2

8.6

8.3% 8.4

% points 2012/13 v 2011/12

8.1% 8.2 8.0

2011

2012

2013

+ 0

2

BMF KPI REPORT For 12 months ending April 2013

Transport Costs – Heavyside 9.0

8.6%

8.8%

points.

8.0

7.4% % points 2012/13 v 2011/12

7.5

7.0

2011

2012

2

Lightside merchants’ transport costs rose by 0.5 percentage

8.5

points over 2011/12.

7.9%

Percent

7.9%

+ 0

2013

Transport Costs – Lightside Road Transport costs for all Lightside merchants as a percentage of delivered sales

costs rose marginally over 2011/12 by 0.2 percentage

8.5

Percent

Road transport costs for Heavyside merchants as a percentage of delivered sales

Heavyside merchants’ transport 8.8%

8.0

7.4% 7.5

% points 2012/13 v 2011/12

7.0% 7.0

2011

2012

+ 0

5

2013

Debtors outstanding were held

Debtor Days

steady for this second year

Trade debtor days outstanding

running.

60

Days

55

55

55

55

% points 2012/13 v 2011/12

55 days 50

2011

2012

2013

0

0

BMF KPI REPORT For 12 months ending April 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 nearly 400 companies in this sector. BMF merchant members have combined annual sales of over £6 billion.

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