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