CMO Group PLC Full Year Update (8005O)
February 03 2023 - 2:24AM
UK Regulatory
TIDMCMO
RNS Number : 8005O
CMO Group PLC
03 February 2023
CMO Group Plc
("CMO" or "the Group")
Full Year Update (unaudited)
Another year of growth
Unique proposition positioned to continue to grow market
share
CMO Group PLC, the UK's largest online-only retailer of building
materials, today announces an update on trading for the full year
to 31 December 2022.
-- Total sales growth of 9% to GBP83.1m (2021 GBP76.3m)
-- Like-for-Like sales growth 2%
-- Adjusted EBITDA* c.GBP2.1m (2021 GBP3.7m)
-- Closing cash balance of GBP6.2m (Net cash of GBP1.4m)
2022 has marked another year of growth with total sales for the
year up 9% to GBP83.1m (2020: GBP76.3m). Like-for-Like sales
continued to grow, with a year-on-year improvement of 2% despite
widely reported industry headwinds, which was 32% above
pre-pandemic levels (FY19). Adjusted EBITDA* is anticipated to be
approximately GBP2.1m.
Pleasingly, the last two months of 2022 saw strong growth of 8%
in Superstore orders over 2021. As previously advised, we
experienced a slower unwind of the order book in this period which
impacted dispatched sales. There was a particularly strong
performance from Plumbing SUPERSTORE, the newly launched platform
which combined the acquisitions of JTM Plumbing Merchants and
clickbasin.com into a focussed vertical.
The Group closed the year with cash balances at GBP6.2m. The net
cash position at the year-end of c.GBP1.4m, higher than previously
guided, was assisted by the increased order intake in November and
December.
The cash generative nature of our operations, a flexible banking
partner, and an undrawn working capital facility of up to GBP4m,
provides the Group with a sound financial position and more than
sufficient headroom for continued Group development.
Our strategic growth projects during 2022, particularly
development of the new plumbing SUPERSTORE vertical, contributed to
the ongoing development of the Group. It's unique proposition of
direct sales to customers, a product range of over 100,000 SKUs and
an efficient direct service through its dropship model enables the
Group to continue to disrupt the traditional market. The Group's
strategy is delivering growth and will further expand the share of
its chosen markets.
In January 2023, exciting new branding was launched across all
eight of the SUPERSTORES including CMO Trade which became Building
SUPERSTORE. The brand refresh is part of the ongoing development of
the online portfolio. Our Good Build SUPERSTORE, where customers
can be inspired and buy everything they need for their project, is
expected to launch in Q1.
*Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation, foreign exchange, exceptional and
acquisition costs.
Dean Murray, CEO of CMO Group Plc, said:
"Our strategy to disrupt and build market share continues to
deliver growth. Despite the macro-economic and industry headwinds
seen in 2022, CMO delivered significant sales growth.
"We will continue to drive penetration across sectors where we
have existing operational strength and also seek new verticals to
take advantage of our differentiated proposition which continues to
deliver an unrivalled breadth of products, a differentiated
delivery proposition and uncompromising customer service.
"As we look to 2023, despite market conditions remaining
challenging, we are confident that we can deliver further
progress."
3 February 2023
Enquiries:
CMO Group PLC Via Instinctif
Dean Murray, CEO
Jonathan Lamb, CFO
Liberum Capital Limited (Nominated Adviser & Broker) Tel: +44 20 3100 2000
Andrew Godber
Lauren Kettle
Cara Murphy
Instinctif Partners
Matthew Smallwood Tel: +44 20 7457 2005
Justine Warren Tel: +44 20 7457 2010
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