TIDMCMO
RNS Number : 3471N
CMO Group PLC
29 September 2021
CMO Group PLC
("CMO" or "the Group")
Interim Results for the six months ended 30 June 2021
(unaudited)
Strong results meeting our expectations
CMO Group PLC, the UK's largest online-only retailer of building
materials, today announces its unaudited Interim Results for the
six months ended 30 June 2021.
Financial and Trading Highlights
-- Revenue increased by 63% to GBP38.2m (H1 2020: GBP23.4m),
reflecting strong organic growth and an GBP8.8m contribution from
the acquisition of Total Tiles
-- Like-for-like ("LFL") revenue growth of 27%
-- Gross profit increased to GBP7.4m (H1 2020: GBP3.4m)
-- Adjusted EBITDA* increased to GBP2.0m (H1 2020: GBP0.8m)
-- Profit before tax increased to GBP0.5m (H1 2020: GBP0.7m loss)
Operational Highlights
-- Completion of successful IPO on AIM, raising over GBP27m for the Group
-- Trading in the half year to 30 June 2021 has been delivered to plan with strong LFL results
-- Continued focus on demand planning to mitigate challenging market conditions
-- B2B CMO Trade APP on track to launch in early Q4
Terms agreed for acquisition of JTM Plumbing Ltd
-- In line with its stated strategy, CMO agreed terms for the
acquisition of JTM Plumbing Ltd , a pure play digital retailer of
first fix plumbing and heating supplies
-- Consideration of up to GBP5.7m for JTM Plumbing Ltd, which is
subject to a net asset adjustment, includes an element of
contingent consideration and will be settled from the Group's
existing resources in cash
-- This new category will be marketed under the plumbingsuperstore.co.uk domain name
Outlook
-- CMO's market remains buoyant and the Group is managing industry headwinds well
-- Expectation to deliver double-digit sales growth in-line with FY expectations
*Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation, exceptional and acquisition costs.
Dean Murray, CEO of CMO Group PLC, said:
"I would like to take this opportunity to extend a warm welcome
to our new investors who came on board at IPO in July and to thank
all of our colleagues for their continued hard work and commitment
at this time. I am delighted to report a strong set of results
meeting the expectations set at IPO. Our strategy is to take
advantage of the channel shift online and low penetration of
internet driven sales in an enormous and evolving marketplace,
augmented by our dropship, asset light delivery model.
"I am also pleased to report a positive contribution from Total
Tiles and the team in their first six months of trading within the
enlarged CMO Group. We will continue to grow our product range
through selective strategic acquisition and are delighted to
announce we have agreed terms for the acquisition of JTM Plumbing
Ltd, a digital pure play business, which takes us into the
different category of online plumbing and heating.
"The current challenges facing our industry are well documented
however we are managing these well and remain confident of
achieving continued double-digit sales growth in H2 to meet the
Board's expectations."
Enquiries:
CMO Group PLC Via Instinctif
Dean Murray, CEO
Jonathan Lamb, CFO
Liberum Capital Limited (Nominated Tel: +44 20 3100
Adviser & Broker) 2000
Andrew Godber
Lauren Kettle
Cara Murphy
Instinctif Partners
Justine Warren Tel: +44 20 7457
2010
Matthew Smallwood Tel: +44 20 7457
2005
CMO Group PLC
Interim Results Statement for the six months ended to 30 June
2021
This has been another successful period of growth for CMO, and
we are delighted to report strong half year results in-line with
the Board's expectations. Group revenue increased 63% to GBP38.2m,
reflecting strong organic growth and an GBP8.8m contribution from
the acquisition of Total Tiles which was acquired in December 2020.
On a Like-for-like ("LFL") basis, revenue grew by 27%.
Correspondingly, EBITDA more than doubled to GBP2.0m and pre-tax
profit for the period was GBP0.5m versus a loss of GBP0.7m in the
corresponding period in 2020. We have also achieved the significant
milestone of a public listing.
Our aim is to revolutionise the shopping experience of
homeowners and tradespeople to become the 'go to' digital retailer
of building materials - and our opportunity remains undiminished.
As the UK's largest online-only retailer of building materials, we
continue to disrupt a GBP27 billion, predominantly-offline market
with our digital first proposition and market leading product
choice, supported by high quality customer service and technical
expertise with a personalised customer experience .
The Group enjoyed positive overall trading patterns in the
period. As has been well documented across the wider building
materials sector, supply chains have been impacted by certain
delivery challenges and product shortages brought about by the
unprecedented combination of factors such as BREXIT and the
pandemic.
Whilst CMO has not been immune to these, our unique digital
hybrid service model, which combines specialist advice and
expertise and an asset light, predominantly dropship delivery
method, has enabled the Group to mitigate and manage most of the
effects through a number of self-help initiatives such as: improved
supply chain communications to manage the order process; increased
real time stock feeds and daily updates; further investment in our
category team to ensure customer demand for product is satisfied;
expanded warehouse capacity for key lines; expansion of its courier
network; and upweighted customer communication to provide guidance
on planning ahead.
Despite these challenges, the majority of our categories have
enjoyed double digit growth in the first half of the year. Certain
of these issues are persisting in the short term and we estimate
this will equate to a c.3% loss of opportunity of sales in the
second half of the year.
That said, we anticipate that some of the recently announced
Government initiatives to address the shortage in HGV drivers for
example, will enable improvements in the medium term, over and
above the self-help actions which we are already undertaking. As a
result, the Board remains confident that the Group's trading
remains in line with its expectations.
Looking ahead, we are excited by the forthcoming launch of the
CMO Trade App which is on track to launch early in Q4. This
additional route to market combines our specialist advice and
expertise, which will allow us to further service the next
generation of digital natives and showcase our full catalogue in an
easy to access smart phone experience. Our trade customer will
benefit from a simplified shopping experience that offers the
possibility for 2-way conversation with chat on the go. It will
offer exclusive product opportunities , and customer retention will
be aided by push notifications. Our full suite of existing tools
will now be directly in the hand of our trade customer saving them
time. This development will position us well for future growth.
In line with our commitment to ESG, we continue to make great
strides in the journey to develop Group-wide policies and action
our sustainability plans. We are pleased to also report that we
have hit our first milestone in our environmental efforts, and we
will be planting 2,500 trees in the spring planting season in the
vicinity of Plymouth.
With due focus on our internal customer, we are also in advanced
discussions on key incentives to continue to deliver on our
excellent track record of acquiring and retaining talent as we look
to the future and continue to develop the business.
Furthermore, the Group continues to be recognised for its
performance with shortlistings for Large Business of the Year and
UK Customer Satisfaction awards and most recently The Tile
Association award for Best E-Commerce/App 2021.
As part of the growth strategy outlined at the time of our IPO,
we have been actively seeking to expand our business by increasing
our category offering and addressable market opportunity. We are
delighted to announce that we have agreed terms for the acquisition
of JTM Plumbing Ltd , trading as jtmplumbing.co.uk, which
establishes a foothold for the Group in the GBP795m** online
plumbing and heating market and is highly complementary to the
Group's existing range of specialist category skillsets . We have
acquired the website domain name plumbingsuperstore.co.uk as the
platform for JTM Plumbing Ltd and an expanded range of plumbing and
heating products.
Founded in 2007, JTM Plumbing Ltd is a pure play digital
retailer of first fix plumbing and heating supplies including
copper pipe and fittings, plastic pipe and push fit fittings, water
filters, heating (thermostats/tanks and heaters/radiator valves),
lagging, insulation and accessories, based in Darlington, County
Durham.
In the financial year ended 31 October 2020, JTM Plumbing Ltd
reported unaudited revenues of GBP5.9m (FY 2019: GBP6.9m), adjusted
EBITDA of GBP0.54m (FY 2019: GBP0.36m) and profit before tax of
GBP0.6m (FY 2019: GBP0.3m). Net assets at October 2020 were GBP1.6m
(FY 2019: GBP1.1m).
The consideration of up to GBP5.7m for JTM Plumbing Ltd, which
is subject to net asset adjustment, includes an initial
consideration of GBP3m and an element of contingent consideration,
subject to achieving earn out criteria, to be settled in cash drawn
from the Group's revolving acquisition facility. The acquisition
price represents an attractive adjusted EBITDA multiple for the
Company, based on JTM Plumbing Ltd 's anticipated FY 2021 out turn.
The purchase of JTM Plumbing Ltd will include GBP1.1m of inventory
and an 18,000 sq. ft freehold property comprising warehousing and
offices.
The Board believes that this acquisition will significantly
increase CMO's addressable market opportunities. It will drive
further online penetration by being able to offer the homeowner and
the Group's trade customers a one-stop-shop for all their building
materials needs from first to final fix, whilst continuing to
provide specialist category and product expertise.
The Board is confident that by migrating the JTM Plumbing Ltd
business onto CMO's highly scalable bespoke e-commerce platform,
rebranding the business to plumbingsuperstore.co.uk, developing the
category offering, and expanding into the wider Group's customer
base, JTM Plumbing Ltd can rapidly grow its revenues and
profits.
As the reporting date is prior to admission the balance sheet
presented pre-dates the CMO's admission to AIM. All senior debt
(GBP3m) together with loan notes and accrued interest (GBP17.5m)
have been repaid and the deferred consideration for the Total Tiles
acquisition has been funded from the placing proceeds. Cash
conversion remains strong benefitting from higher activity levels
and the negative working capital cycle.
Product margins enhanced to 19.4% from 14.6%, which reflects
margin benefits achieved from the Total Tiles acquisition. There
have been higher variable costs because of marketing costs in Total
Tiles, but these remain within target. Inventory growth and
overhead increases reflect investment in people and infrastructure,
together with the addition of Total Tiles.
In summary, since the end of the first half, trading has
continued as expected and the Board remains confident of delivering
double-digit sales growth in the second half, thereby meeting
current full year guidance.
Dean Murray
Chief Executive Officer
29 September 2021
**AMA UK Internet Plumbing & Heating Market report. FY 2021
estimate at Distributor Selling Price.
About CMO
Founded in 2008 as Construction Materials Online, CMO is the
UK's largest online-only retailer of building materials. The
Company is disrupting a GBP27 billion predominantly offline market
with a digital first proposition and market leading product choice,
supported by high quality customer service and technical
expertise.
CMO has created category authority by offering market-leading
ranges listing over 75,000 products through its seven specialist
websites: Roofingsuperstore.co.uk, Drainagesuperstore.co.uk,
Insulationsuperstore.co.uk, Doorsuperstore.co.uk,
Tileandfloorsuperstore.co.uk, cmotrade.co.uk and
Totaltiles.co.uk.
Its unique digital hybrid service model, developed over more
than 10 years, combines specialist advice and expertise tailored to
category and customer needs online, to service the next generation
of digital natives by bridging the gap between traditional bricks
and mortar retailers and pureplay digital retailing. CMO has
established trusted partnerships with manufacturers and supply
partners across the UK. Its business model is asset light with the
majority of products dropshipped directly from the manufacturers to
its customers. CMO's aim is to revolutionise the shopping
experience of homeowners and tradespeople to become the 'go to'
digital retailer of building materials, providing market leading
product choice, relevant help and advice, and a personalised
customer experience.
Financial Review
Condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the six months ended 30 June 2021 (unaudited)
6 months 6 months Year
ended ended ended
30-Jun-21 30-Jun-20 31-Dec-20
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Revenue 38,195 23,421 52,351
Cost of Sales (30,772) (19,997) (44,222)
Gross Profit 7,424 3,424 8,129
19% 15% 16%
Administrative Expenses (5,975) (3,223) (6,651)
Profit from operations 1,448 200 1,478
Finance Income - - 1
Finance Expense (927) (852) (1,869)
Profit / (loss) before taxation 522 (651) (390)
Taxation (144) (395) (371)
Profit / (loss) for the period 378 (1,046) (761)
Earnings per share for profit / (loss)
attributable to the owners of the parent
Basic and diluted (pence) 0.52 (2.05) (1.49)
EBITDA
EBITDA can be reconciled to the profit
before tax as follows
EBITDA 2,053 882 2,603
Exceptional costs (131) (237) (397)
Depreciation (240) (130) (549)
Amortisation (233) (315) (178)
Finance Income - - 1
Finance Expense (927) (852) (1,869)
Profit / (loss) before taxation 522 (651) (390)
Consolidated Statement of Changes in Equity
For the period ending 30 June 2021 (unaudited)
Share Retained Total
capital earnings Equity
GBP000 GBP000 GBP000
Balance at 1 January 2021 0 (5,415) (5,415)
Profit for the period 0 378 378
Total comprehensive income for
the period 0 378 378
Balance at 31 June 2021 0 (5,038) (5,038)
--------- ---------- --------
Balance at 1 January 2020 0 (4,654) (4,654)
Loss for the year 0 (761) (761)
Total comprehensive income for
the year 0 (761) (761)
Balance at 31 December 2020 0 (5,415) (5,415)
--------- ---------- --------
Consolidated Statement of Financial Position
As at 30 June 2021 (unaudited)
6 months 6 months Year
ended ended ended
30-Jun-21 30-Jun-20 31-Dec-20
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Assets
Current assets
Inventories 3,850 713 3,342
Trade and other receivables 1,439 582 1,223
Cash and cash equivalents 9,064 6,283 6,050
Total Current Assets 14,354 7,578 10,615
---------- ---------- ----------
Non-current assets
Investments - 250 -
Property, plant and equipment 372 363 453
Right-of-use assets 456 339 583
Intangible assets 18,733 14,441 18,530
Deferred tax assets 6 149 146
Total Non-current assets 19,567 15,542 19,712
---------- ---------- ----------
Total Assets
Liabilities
Current Liabilities
Trade and other payables (19,659) (13,752) (11,297)
Loans and borrowings (5,935) (2,259) (392)
Lease liabilities (138) (71) (269)
Current tax liabilities (471) - (302)
Total Current Liabilities (26,203) (16,082) (12,260)
---------- ---------- ----------
Non-current liabilities
Loan and borrowings (12,298) (12,298) (23,017)
Lease liabilities (458) (398) (465)
Total non-current liabilities (12,756) (12,695) (23,482)
---------- ---------- ----------
Total Liabilities (38,958) (28,777) (35,742)
---------- ---------- ----------
Net (liabilities) (5,038) (5,657) (5,415)
---------- ---------- ----------
Issued capital and reserves attributable
to owners of the parent
Share capital - - -
Accumulated losses (5,038) (5,657) (5,415)
(5,038) (5,657) (5,415)
---------- ---------- ----------
Consolidated Statement of Cash Flows
For the period ended 30 June 2021 (unaudited)
6 months 6 months Year
ended ended ended
30-Jun-21 30-Jun-20 31-Dec-20
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Cash flows from Operating activities
Profit /(loss) for period 378 (1,046) (761)
Adjustments for non-cash/ non-operating
items:
Depreciation of property, plant and
equipment and right-of-use asset 240 130 335
Amortisation and impairment of intangible
fixed assets 233 315 548
Income tax expense 144 395 371
Finance income - - (1)
Finance expense 927 828 1,869
Changes in operating assets and liabilities
(Increase) / decrease in inventory (508) 76 (4)
(Increase) / decrease in trade and other
receivables (76) 331 (27)
Increase / (decrease) in trade and other
payables 2,957 3,157 1,800
Cash from Operations 4,292 4,184 4,130
Net cash from Operating activities 4,292 4,184 4,130
Cash flows from Investing Activities
Purchase of intangible fixed assets (436) (232) (472)
Purchase of tangible fixed assets (32) 44 (25)
Cash paid for acquisitions net of cash
acquired - - (503)
Interest received - - 1
Net cash used in investing activities (467) (188) (999)
Cash flows from financing activities
Receipts from borrowings drawn down - - 1,282
Repayment of borrowings (233) (80) (390)
Repayment of loan notes (351) - (174)
Repayment of lease liabilities (137) (48) (219)
Interest paid (89) (62) (57)
Net cash from / (used in) financing
activities (811) (190) 442
Net increase in cash and cash equivalents 3,014 3,806 3,573
Cash and cash equivalents at beginning
of period 6,050 2,477 2,477
Cash and cash equivalents at end of
period 9,064 6,283 6,050
---------- ---------- ----------
1. General Information
CMO Group PLC ('the Company' or 'the Group') is a public company
limited by shares, incorporated in the United Kingdom under the
Companies Act 2006 (registration number 13451589) and registered in
England and Wales. The registered office address is Burrington
Business Park, Burrington Way, Plymouth, PL5 3LX.
Copies of this interim report may be obtained from the
registered address or from the investors section of the company's
website at cmogroup.com.
2. Basis of Preparation
These consolidated interim financial statements of the group of
for the six months ended 30 June 2021 were approved by the Board of
Directors on 27 September 2021.
They do not include all of the information required for a
complete set of IFRS financial statements and should be read in
conjunction with the Group's last annual consolidated financial
statements for the year ended 31 December 2020. However, selected
explanatory notes are included to explain events and transactions
that are significant to understanding changes in the Group's
financial position and performance since the last annual financial
statements.
The Annual Report and Accounts for the year ended 31 December
2020 was audited and has been filed with the Registrar of
Companies. The independent auditors report on the annual report and
accounts for the year ended 31 December 2020 was not qualified and
did not contain statements under Section 498 of the Companies Act
2006.
The financial information for the six months ended 30 June 2021
and 30 June 2020 is unaudited and has not been reviewed by the
Company's auditors.
The condensed consolidated interim financial statements for the
six months to 30 June 2021 has been prepared on the basis of the
accounting policies expected to be adopted for the year ending 31
December 2021. These are anticipated to be consistent with those
set out in the Group's latest annual financial statements for the
year ending 31 December 2020 with the exception of where there is a
difference between UK GAAP and IFRS. These interims have been
prepared in accordance with UK adopted international accounting
standards but does not include all of the disclosures that would be
required under International Financial Reporting Standards (IFRSs)
. The interim financial statements are presented in pounds
sterling, which is the functional currency of the group. Amounts
are rounded to the nearest thousand, unless otherwise stated.
AIM-quoted companies are not required to comply with IAS 34
Interim Financial Reporting and accordingly the company has taken
advantage of this exemption.
The directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future and thus continue to adopt the going concern
basis in preparing these interim financial statements
3. Significant Accounting Policies
The group has applied the same accounting policies in these
interim financial statements as in its 2020 annual financial
statements with the exception of where there is a difference
between UK GAAP and IFRS. Full disclosure of the transition to IFRS
was made in the Group's AIM admission.
4. Use of judgments and estimates
The significant judgments made by management in applying the
Groups accounting policies and key sources of estimation
uncertainty for the interim financial statements are the same as
those described in the 2020 annual financial statements.
5. Segmental Analysis
The group currently only report on one performance line being
the retail of construction materials.
6. Income tax
The income tax credit /charge for the period is based on the
estimated rate of corporation tax that is likely to be effective
for the year to 31 December 2021.
7. Dividends
No dividends were paid during the period and no dividend was
paid relating to financial year 2020.
8. Earnings per Share
Earnings per share are as follows:
6 months 6 months Year
ended ended ended
30-Jun-21 30-Jun-20 31-Dec-20
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Earnings from Continuing operations
---------------------------------------- ---------- ---------- ----------
Earnings for the purposes of basic
and diluted earnings per share profit
/ (loss) for the period Attributable
to the owners of the parent) 378 (1,046) (761)
Number of shares 000 000 000
---------------------------------------- ---------- ---------- ----------
Weighted average number of ordinary
shares - basic earnings calculation 71,970 51,072 51,215
Dilutive potential ordinary shares - - -
from share options
Weighted average number of ordinary
shares from share options - diluted
calculations
2021 2020 2020
pence pence pence
Basic earnings per share 0.52 (2.05) (1.49)
Diluted earnings per share 0.52 (2.05) (1.49)
Earnings per share (EPS) is calculated by dividing the profit
for the year, attributable to ordinary equity holders of the
parent, by the weighted average number of ordinary shares
outstanding during the year.
Diluted EPS is calculated on the same basis as basic EPS but
with a further adjustment to the number of weighted average shares
in issue to reflect the effect of all potentially dilutive share
options. The number of people in potentially dilutive share options
is derived from the number of share options and awards granted to
employees and directors where the exercise price is less than the
average market price of the Company's ordinary shares during the
period. Under IFRS no allowances made for the dilutive impact of
share options which reduce a loss per share. The basic and diluted
EPS measures are therefore the same.
On 8 July 2021, the Group was admitted to and dealings in the
Ordinary Shares commenced on AIM. In connection with Admission, the
Group undertook a reorganisation that resulted in CMO Group PLC
(the Company) replacing CMOStores Group Limited as the ultimate
holding company of the Group. The Group Reorganisation steps
comprised the incorporation of the Company on 11 June 2021 with the
name CMO Group PLC with an issued share capital of 5,000,000
Ordinary Shares held by KCP as the initial Shareholder of the
Company. Immediately following the share capital reorganisation,
which was carried out via a share for share exchange, each ordinary
share of CMOStores Group Limited (CGL) was acquired by the Company
and the Company was substituted as issuer of all of the loan notes
of CGL in place of CGL.
Following the reorganisation there were 51,310,056 ordinary
shares issued and credited as fully paid with an aggregate nominal
value of GBP513,100.56. Immediately on Admission following the
Placing there were 71,969,697 ordinary shares issued and credited
as fully paid with an aggregate nominal value of GBP719,696.97. The
Placing Shares shall represent 47.4 per cent. of the Enlarged Share
Capital.
The Placing Price of 132 pence per Ordinary Share represents a
premium of 132 pence over the Net Asset Value Per Share. The total
costs and expenses of, and incidental to, the Placing and Admission
save for the commissions and stamp duty payable by the Selling
Shareholders, together with internal costs relating to the
reorganisation amount to GBP4.6 million and are payable by the
Company.
9. Business combinations and goodwill
Reconciliation of carrying amount of goodwill
6 months 6 months Year
ended ended ended
30-Jun-21 30-Jun-20 31-Dec-20
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Cost
At 1 January 16,860 13,571 13,571
Acquisitions through business
combinations - 3,289
At 30 June / 31 December 16,805 13,515 16,860
---------- ---------- ----------
There have been no new business combinations in the six months
ended 30 June 2020 however the following existing deferred
consideration arrangements are in place.
Deferred consideration
On 31 December 2020, the group acquired 100% of the equity
instruments of Total Tiles Limited, a UK based business, thereby
obtaining control. The purchase agreement includes a payment on
completion and an element of deferred consideration. The agreement
includes an adjustment to the deferred consideration calculated
based upon the net current assets of Total Tiles Limited at 31
December 2020. The deferred consideration is payable seven days
after the earlier of 30 September 2022 or the date at which the
Board of Directors approve the audited annual accounts of the Group
for the year ending 31 December 2021.
10. Loans and borrowings
6 months 6 months Year
ended ended ended
30-Jun-21 30-Jun-20 31-Dec-20
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Loans and borrowings
Senior debt (3,029) (2,257) (3,231)
Loan notes (17,715) (12,298) (17,240)
(20,744) (14,555) (35,299)
---------- ---------- ----------
The Directors consider that the carrying amount of loans and
borrowings approximates to their fair value.
Facility A loan is denominated in pounds sterling with a nominal
interest rate at 3.45% plus LIBOR and with the final instalment due
on 31 March 2022. The carrying amount at 30 June 2021 is GBP302,083
(31 December 2020: GBP500,533).
Facility B loan is denominated in pounds sterling with a nominal
interest rate of 3.95% plus LIBOR, and with the final instalment
due on 31 March 2022. The carrying amount 30 June 2021 is
GBP1,476,750 (31 December 2020: GBP1,480,000).
Facility C loan is denominated in pounds sterling with a nominal
interest rate of 4.45% plus LIBOR, and with the final instalment
due on 31 March 2022. The carrying amount 30 June 2021 is
GBP1,250,000 (31 December 2020: GBP1,250,000).
On 1 July 2021, the Company replaced the above facilities, which
were repaid in full, and entered into a revolving credit facility
agreement with Clydesdale Bank Plc (trading as Yorkshire Bank) in
respect of revolving loan facilities in an aggregate amount of
GBP10 million to be made available to the Group (the "Revolving
Facility"). The borrowers under the Revolving Facility are the
Company, CGL, CMOStores Holdings Limited and Total Tiles. The
guarantors under the Revolving Facility are the Company, CGL,
cmostores.com Limited and Total Tiles. The proceeds of the Facility
A of the Revolving Facility (which has a limit of GBP6 million) can
be used for financing acquisitions permitted under the Revolving
Facility ("Facility A") and the proceeds of Facility B under the
Revolving Facility (which has a limit of GBP4 million) can be used
for the general corporate and working capital purposes of the Group
("Facility B"). The final maturity date of the Revolving Facility
is six years after the date of the Revolving Facility (the
"Termination Date"). Facility A will be reduced by GBP250,000 on
each quarter from 30 June 2023, until it is reduced by GBP3 million
on 30 June 2026.
11. Dividends
No dividends were paid during the period and the directors did
not recommend payment of the dividend for the period ending 31
December 2020.
12. Related Party Transactions
Transactions with directors
Three directors held loan notes with the Group at 30 June 2021
of GBP448,968 (31 December 2020 : GBP448,968). This is recognised
within Loans and borrowings. These loan notes have a nominal
interest rate of 10%. At 30 June 2021 the amounts due to these
related parties totalled GBP650,374 (31 December 2020 :
GBP632,320).
One non-executive director held loan notes with the Group at 30
June 2021 of GBP648,956 (31 December 2020 : GBP648,956). This is
recognised within Loan and borrowings. These loan notes have a
nominal interest rate between 6% and 10%. At 30 June 2021 the
amounts due to this related party totalled GBP905,207 (31 December
2020 : GBP883,108).
Summary of transactions with entities with joint control or
significant interest
The ultimate controlling party held loan notes with the Group at
30 June 2021 of GBP8,473,960 (31 December 2020 : GBP8,649,940).
This is recognised within Loans and borrowings. These loan notes
have a nominal interest of 10%. At 30 June 2021 the amounts due to
these related party totalled GBP12,353,363 (31 December 2020 :
GBP12,011,326).
All loan notes and associated interest were repaid at
Admission.
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