MKM Building Supplies is on target to open new branches this year.

David Kilburn, MKM Building Supplies chief executive, said: "Although profitability reduced slightly, this was due to significant investment in opening two new branches just prior to our financial year end.

"Since that time, trading has remained strong and sales are ahead of the same period last year, despite continued challenges in the marketplace, exacerbated by the prolonged stretch of cold weather.

"Last year, we concluded a comprehensive refinancing package with Lloyds Bank and our business model is robust, as demonstrated by our performance throughout the downturn, so we remain optimistic for the future and are confident of meeting our target to open three or four new branches in this financial year."

Last year, the Hull-based merchant increased its sales by 5 percent to £140m from £133m.