Redundancy is a stressful experience for anybody but when it happens to you at the age of 50, you鈥檙e faced with an especially difficult decision: it this the end of your career? Can you afford to retire? If not, are you still employable?
When this happened to David Kilburn in October 1995, he chose a third option: he started his own business.
Kilburn, who had just lost his job as commercial director at Grimby-based Harcros Timber & Building Supplies, had once had his own merchant business in Scarborough. 鈥淪o I thought, why not again?鈥� he recalls.
Meanwhile Peter Murray, manager of a branch in Hull, had survived the Harcros restructuring. But when Kilburn asked him if he fancied running his own business, Murray leaped at the idea.
The two colleagues set up their new business, Murray Kilburn Merchants 鈥� now universally known as MKM Building Supplies 鈥� in a rented 5,000 sq ft shed on Stoneferry Road, Hull.
According to Kilburn, the early days proved difficult: banks refused loans; competitors told suppliers the business wouldn鈥檛 last three months. But what the two partners did possess was that quality now considered a prerequisite for any business leader: 鈥榩assion鈥�.
鈥淲hen you鈥檙e trying to sell a vision that doesn鈥檛 exist yet, passion is your only real currency,鈥� says Kilburn.
Thankfully, one supplier made a leap of faith and offered MKM six months鈥� credit. Kilburn says that 鈥渢rust, loyalty and relationships quickly became the bedrock of the new business鈥�.
In 1996 Kilburn made a decision that would have a major influence on the evolution of the business. Geoff Ullyott, a former colleague of Kilburn鈥檚, asked if he could set up a second branch of the business in Driffield. Kilburn liked the idea and, to give Ullyott an incentive to make it work, offered him a 25% stake in the branch.
It worked so well that since then every new branch has been run by a branch director with a 25% stake.
鈥淚t was like the bush telegraph,鈥� Kilburn says. 鈥淧eople we鈥檇 worked with before were calling up, asking if they could open a branch in their home towns. People say it was the best decision I ever made, but I couldn鈥檛 have known then how much of a game-changer it would be.鈥�
Kilburn believes that the people running the branches 鈥� those who know their local customers best 鈥� should have a say in local decision-making, from building customer relationships to hiring and community initiatives.
Each branch director has autonomy over stock, vehicles, credit limits and local decisions but also benefits from the support of the wider MKM network. This model has been fundamental to MKM鈥檚 growth because of the belief that it attracts entrepreneurial leaders and builds a sense of ownership.
鈥淲hen you give good people real responsibility, they don鈥檛 just run a branch 鈥� they live for it,鈥� says Andy Beet, MKM鈥檚 Beverley branch director. Beet, who joined MKM at just 26 years old is one of the six original MKM staff members, along with Janet Murray, Linda Kilburn, Richard Taylor and the two founders.
Thirty years on and the MKM network now numbers 135 branches and has spawned a specialist subsidiary business, Oceanair, which distributes plumbing, heating and air conditioning supplies. This year鈥檚 group turnover is expected to exceed 拢1bn (see box, p49).
In 2006 co-founder Peter Murray sold his shares and left the business when private equity partners 3i and LDC bought into the business and embarked upon an ambitious growth strategy. Murray was temporarily lured back the following year to help develop the branch network.
Eleven years later MKM reached another milestone when 3i and LDC sold their shareholding to another venture capitalist, Bain Capital.聽
By 2020 Kilburn was ready to take a backseat and Kate Tinsley joined the business as chief executive.
An accountant by profession, Tinsley has a strong track record in the construction materials industry, having worked with British Gypsum, Grafton Group and, latterly, brickmaker Ibstock where she was divisional managing director.
Under Tinsley鈥檚 leadership, growth has accelerated, mainly by acquisition. Over the past five years, the number of branches has almost doubled and the group has a target to reach 250 branches within the decade 鈥� equivalent to 10 new branches every year.
鈥淲hen I joined, we had 73 branches and around 拢470m in sales,鈥� says Tinsley. 鈥淭his year we鈥檒l hit 拢1.1bn and within the next five or six years we鈥檒l be through 拢2bn. But the truth is, the big number isn鈥檛 what excites me. What matters is being number one in every local market we serve, and giving local people the opportunity to run their business.鈥�
Kilburn 鈥� who turned 80 in July 鈥� is no longer involved in the day-to-day running of the business, although Tinsley says that he still visits every new branch to 鈥渟hare MKM values with them鈥�.
鈥淲e鈥檝e always said everyone is welcome here. We want people to be happy coming to work in the morning,鈥� says Kilburn. 鈥淭hat culture is my proudest achievement by far 鈥� my life鈥檚 work. In 2023 Kilburn鈥檚 achievements were recognised in the King鈥檚 inaugural Birthday Honours with the award of a CBE.
The following year, Tinsley herself picked up an OBE for 鈥渟ervices to construction and diversity鈥�.
While Tinsley has ambitious plans for MKM, she vows allegiance to Kilburn鈥檚 original business concept: 鈥淥ur branch director model is our single differentiator,鈥� she says. 鈥淲hile I鈥檓 CEO, there is absolutely no way that would change. It鈥檚 what makes MKM special, and my role is to make sure we never lose it.鈥�
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