TIDMCMO
RNS Number : 7650Z
CMO Group PLC
27 January 2022
CMO Group PLC
("CMO" or "the Group")
Year-end Trading Update (unaudited)
Continued rapid growth
CMO Group PLC, the UK's largest online-only retailer of building
materials, today announces a trading update for the year ended 31
December 2021.
Total sales for the year were up 47% to GBP77m (2020: GBP52m)
with H2 revenue of GBP38m, an increase of 33% over H2 in 2020.
Like-for-Like sales grew 12% year-on-year, 30% over two years.
The strong sales growth has been driven by improved revenue from
CMO's online superstores and from continued growth in Total Tiles,
acquired in December 2020, which saw 10% year-on-year growth. JTM
Plumbing has performed in line with expectations since acquisition
in October 2021. Progress is being made towards the launch of
plumbingsuperstore.co.uk which is expected in Q2.
Prevalent during H2 were the widely reported industry headwinds
encompassing delays and shortages of product, compounded by
increased disruption from Covid in Q4. A continued focus on demand
planning and a 29% increase in warehousing capacity to support an
increased stock holding mitigated the worst of this disruption,
however it is estimated that during H2 the opportunity cost to the
Group of these issues amounted to approximately 5% of expected
sales.
Despite this, we continued to experience strong growth in H2,
with total sales growth of 33% and one and two year like-for-like
growth of 1% and 28%, demonstrating the resilience of our business
model. In the nine trading weeks prior to this statement, we have
seen product availability improving with like-for-like revenues on
dispatched products being 13% ahead of last year.
With strong sales growth, and despite the headwinds above, we
anticipate reporting full year adjusted EBITDA* in-line with market
expectations.
As we enter a new financial year, the markets in which we
operate remain buoyant. With a strong order book and a disruptive
position in its chosen markets, the Board is confident that CMO
will deliver continued growth in the year to come.
*Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation, exceptional and acquisition costs.
Dean Murray, CEO of CMO Group PLC, said:
"We have had another good period of strong growth further
enhancing our proposition and growing our customer base by over
30%**.
"Our markets remain robust and we will continue to disrupt the
traditional marketplace through continuing to being innovative and
expanding the breadth of products for our customers.
"With our strong order book and positive signs of some abatement
in the supply and distribution issues faced in 2021, we enter 2022
with confidence."
**31.49% growth in marketable database.
27 January 2022
Enquiries:
CMO Group PLC Via Instinctif
Dean Murray, CEO
Jonathan Lamb, CFO
Liberum Capital Limited (Nominated Adviser Tel: +44 20 3100
& Broker) 2000
Andrew Godber
Lauren Kettle
Cara Murphy
Instinctif Partners
Justine Warren Tel: +44 20 7457
2010
Matthew Smallwood Tel: +44 20 7457
2005
About CMO
Founded in 2008 as Construction Materials Online, CMO is the
UK's largest online-only retailer of building materials. The Group
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 eight specialist
websites: cmotrade.co.uk, doorsuperstore.co.uk,
drainagesuperstore.co.uk, insulationsuperstore.co.uk,
jtmplumbing.co.uk, roofingsuperstore.co.uk,
tileandfloorsuperstore.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.
Cautionary Statement
Certain statements in this trading update are forward-looking.
Although the Group believes that the expectations reflected in
these forward-looking statements are reasonable, we can give no
assurance that these expectations will prove to have been correct.
Because these statements contain risks and uncertainties, actual
results may differ materially from those expressed or implied by
these forward-looking statements. We undertake no obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
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END
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