REG - CMO Group PLC - Full year update for period ended 31 December 2023

CMOAnnouncement

08/01/2024 07:00

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RNS Number : 8699Y  CMO Group PLC  08 January 2024

 

CMO Group PLC

 

Full year update for period ended 31 December 2023 (unaudited)

 

Progress on key strategic priorities and Q4 trading update

 

CMO Group PLC ("CMO" or the "Group"), the UK's largest online-only retailer of
building materials, today announces an update on Q4 and for the full year to
31 December 2023.

 

As has been widely reported, the ongoing economic challenges have
significantly impacted the construction sector and particularly discretionary
spend within the Repair, Maintenance, and Improvement (RMI) sector. Whilst we
have seen demand remain resilient, consumers shifted towards smaller projects
driving, in a break from previous seasonal trends, lower than normal average
orders values in the latter part of 2023, following the improving trajectory
seen in Q3.

 

Correspondingly, while total sales for the full year to 31 December 2023 are
expected to be broadly in-line at c. £71.5m (2022: £83.1m), full-year
adjusted EBITDA* is expected to be c. £1m (2022: £2.1m), which is below
previous guidance.

 

The Group remains well financed with cash of c. £4.3m (FY22: £6.2m) and net
debt at 31 December 2023 of £1m (FY22: net cash £1.4m).  In addition, we
are making good progress with our flexible banking partner to strengthen the
Group's available liquidity. We continue to maintain a strong focus on
profitable sales and improving liquidity.

 

Despite the disappointing last quarter we are pleased to report success in the
delivery of our previously documented key strategic priorities:

 

·    Improvement in product margins**: Gross product margins excluding
carriage have moved upwards and improved by 1 percentage point compared to
FY22.

·    Carriage Cost Control: we have continued to see the improvements in
carriage recovery as previously reported of 56%.

·    Market share***: the most recent market share data indicates that the
SUPERSTORES have grown market share 11% from H1 to H2 2023.

·    LANDSCAPING SUPERSTORE: launched at the end of December.

 

Full Year results for the year ended 31 December 2023 will be announced, as
usual, at the beginning of May.

 

Dean Murray CEO of CMO Group PLC, said:

 

"We are continuing to deliver on our strategy to disrupt the traditional
market and our strategic priorities. Our success in launching vertically
integrated websites, most recently landscapingsuperstore.co.uk, continues to
drive penetration and takes advantage of our differentiated proposition with
unrivalled breadth of product range, supported by expert customer service.
With macro-economic headwinds continuing to impact the construction sector we
proceed with caution for the outlook for FY24, but remain confident in our
model and strategy to take the business forward, and our ability to deliver
profitable progress."

 

*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation,
share option expense, acquisition costs and exceptional items and stated on an
IFRS basis.

**Excludes carriage

***GFK Builders Merchant market data to October 2023

 

8 January 2024

 

The information contained within this announcement is deemed by the Group to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018.

 

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 (Financial PR)                        Tel: +44 20 7457 2020
 Justine Warren
 Matthew Smallwood
 Joe Quinlan

 

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