BMF KPI REPORT For 12 months ending April 2013
BMF
KPI Report For the 12 months ending April 2015
Key Performance Indicators Benchmarks for the UK Builders Merchants Sector BMF Business Reporting
BMF KPI REPORT For 12 months ending April 2015 2013
Overview Confidence in market and investment in staff The BMF’s Key Performance Indicators Report for 2014/15 indicates how the trading performance of builders merchants fared over the twelve months ending April 2015 compared with the two previous years. The building materials market during the period of this report has seen strong growth. The BMF Sales Indicators reported that for the 12 months ended April 2015 compared with the previous 12 month period, total sales by merchants adjusted for inflation and differences in trading days had increased by 6.9%. Following a large increase in sales growth last year, we have seen the rate of growth increase by a further 3.3% this year as shown in the sales increase/decrease graph in this report. On the year, the picture is one of growth with output in the construction industry increasing by 7.5% from year ending April 2014 to year ending April 2015. All repair and maintenance work between the same periods increased by 4.8%. Public and private new housing increased by 21% and 22% respectively. [ONS 2015] The report shows that: • Trading Margins at 31.5% had increased by 0.3 percentage points from last year • Continued tough credit control enabled Bad Debts as a proportion of credit sales to be kept in line with a 0.1 percentage point decrease over last year. Debtor Days were also decreased with a year on year fall on one day in the last two years to 51 • Average payroll costs per employee rose by 7% compared to last year and by 14% compared to 2013/14. Salary and related costs as a %age of gross margin decreased by 1.5 percentage points compared to last year after a slight rise by 0.3 percentage points the year previously. This clearly shows investment in staff is resulting in hard sales and margin growth
• Heavyside Transport costs have increased by 0.5 percentage points compared to last year. This increase in operating costs show that companies are paying more to retain their drivers which has been offset in the fall in diesel price • Companies within the sample have shown a sales growth of 17% due to a strong market and by expansion from new branches and company acquisitions.
These numbers are based on the most recent publication at financial year ends but subsequent to the formulation of this report some members are reporting an easing off in the market however members remain cautiously optimistic.
The following ratios are a selection from the full survey findings. They give a bench mark of how the merchanting sector performed.
Methodology The BMF 2015 Key Performance Indicators Survey was carried out among BMF merchant member companies in mid 2015. Member’s returns covered the periods to their year ends that fell between 1 May 2014 and April 2015. It should thus be noted that the results are not for the full 2015 calendar year. The BMF Key Performance Indicator Report uses a core sample of participants that enables a true like for like comparison with previous year’s ratios. This core sample for 2015 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 2015
Sales Increase/Decrease
17.0%
17.0% Percent Increase/Decrease
Percentage difference between total sales for current year and sales for the previous year
13.7%
16
3.3 percentage points.
14 12 10 8
3.8% % points 2014/15 v 2013/14
4 2 0
2013
2014
Percent Increase/Decrease
31.5%
33
31.2%
31.5%
30
Percent Increase/Decrease
year.
% points 2014/15 v 2013/14
29
+ 0
3
28
2013
2015
Sales from Stock
83.4%
points compared to the previous
31
2013
Ex stock sales as a percentage of total sales
3
Gross margins increased by 0.3
32.0%
32
+ 3
2015
Trading Margins Gross Margins as a percentage of total sales
Unadjusted sales were up by 17.0%, a growth of
18
The proportion of ex-stock sales to total sales decreased by 1.5 percentage points compared with
87
85.9%
2013/14.
86
84.9% 85
83.4%
84
83
2013
2013
2015
% points 2014/15 v 2013/14
- 1
5
BMF KPI REPORT For 12 months ending April 2015 2013
Sales Direct
16.6%
16.6% Percent Increase/Decrease
Direct sales as a percentage of total sales
The proportion of direct sales
2013/14.
16
15
15.1% 14.1% % points 2014/15 v 2013/14
14
13
2013
2014
5
Net profit after interest improved
Net profit after interest as a percentage of total sales
5.0
4.5%
by 1.3 percentage points.
Percent
4.5 4.0
3.2%
3.5 3.0
% points 2014/15 v 2013/14
2.7%
2.5
2013
2014
+ 1
3
2015
Bad Debts
Bad debts as a proportion of credit sales reduced by 0.1
Bad debts as a percentage of credit sales
percentage points compared with
0.6
0.5% Percent
0.4%
+ 1
2015
Net Profitability
4.5%
to total sales increased by 1.5 percentage points compared with
17
2013/14.
0.5%
0.5
0.4% % points 2014/15 v 2013/14
0.4
0.3
2013
2014
2015
- 0
1
BMF KPI REPORT For 12 months ending April 2015
Salaries as % of Gross Profit Salaries and related costs as a percentage of gross margin
a percentage of gross margin
50 49
Percent
46.8%
Salaries and related costs as
48.0%
decreased by 1.3 percentage
48.3%
48
points over 2013/14. 46.8%
47
% points 2014/15 v 2013/14
46 45
2013
2014
Sales by each employee £200,010
210
2013/14.
£181,740
190 180
% 2014/15 v 2013/14
£168,822
170 160
2013
2014
Gross profitability of each employee
Profitability of each employee increased by 11.2% over £63,082
65
1000’s
60
+ 10 1
2015
Gross Profit per Employee
£63,082
increased by 10.1% over
200
1000’s
£200,010
3
2015
Sales per Employee Total sales by each employee
- 1
2013/14.
£56,747 £54,043
% 2014/15 v 2013/14
55
50
2013
2014
2015
+ 11 2
BMF KPI REPORT For 12 months ending April 2015 2013
Average Cost per Employee
The average payroll cost per £29,505
Salary and wages costs of each employee
30
employee increased by 7.6% over 2013/14.
£29,505
1000’s
29
£27,413
28 27
£25,958
% 2014/15 v 2013/14
26 25
2013
2014
Road delivery costs overall for all merchants remained the same as
9.3%
in 2013/14.
9.5
Percent
8.7%
10.0
6
2015
Transport Costs Overall Road Transport costs for all merchants as a percentage of delivered sales
+ 7
8.7%
9.0
8.7%
8.5
% points 2014/15 v 2013/14
8.0 7.5
2013
2014
0
0
2015
Transport Costs – Mixed
Mixed merchants’ transport costs
Road transport costs for mixed merchants as a percentage of delivered sales
with 2013/14.
8.6%
8.6
Percent
8.4%
8.8
remain unchanged compared
8.4%
8.4%
8.4 8.2
% points 2014/15 v 2013/14
8.0 7.8
2013
2014
2015
0
0
BMF KPI REPORT For 12 months ending April 2015
Transport Costs – Heavyside 11.5
11.0%
11.0
Percent
Road transport costs for Heavyside merchants as a percentage of delivered sales
Heavyside merchants’ transport
11.0%
10.5%
points.
10.0
9.3%
% points 2014/15 v 2013/14
9.5 9.0
2014
7.6
costs increased slightly by 0.1 percentage points over 2013/14.
7.5%
7.5
Percent
5
Lightside merchants’ transport
7.4%
7.4
7.3% % points 2014/15 v 2013/14
7.3
7.2
2013
2014
+ 0
1
2015
Debtors outstanding days were
Debtor Days
reduced by 1 day over 2013/14
Trade debtor days outstanding
55
Days
54
51 days
+ 0
2015
Transport Costs – Lightside
7.4%
2014/15 by 0.5 percentage
10.5
2013
Road Transport costs for all Lightside merchants as a percentage of delivered sales
costs rose marginally over
53
53
52
52
51
51 50
2013
2014
2015
% points 2014/15 v 2013/14
- 1
0
BMF KPI REPORT For 12 months ending April 2015 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 The Builders Merchants Federation Ltd (BMF) is the only trade association representing and protecting the interests of builders’ merchants and suppliers to the merchanting industry in the UK. Total membership at 1 September 2015 stands at 500 merchant and supplier companies who together have combined sales in excess of £17.5bn and employ 94,500 people in the building materials industry. BMF’s 300+ merchant members operate almost 4,000 branches across 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