REG - CMO Group PLC - Interim Results for the period ended 30 June 2024
26/09/2024 07:00
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RNS Number : 7069F CMO Group PLC 26 September 2024
26 September 2024
CMO Group PLC
Interim Results for the period ended 30 June 2024
Resilient performance driven by best-in-class model and market share growth
CMO Group PLC ("CMO" or the "Group"), the UK's largest online-only retailer
of building materials, today announces its interim results for the half year
to 30 June 2024.
While H1 has been tough and the market remains uncertain, there are material
signs of recovery, and we have seen positive trends and momentum build since
the half year end. Notably, we are seeing a steady increase in Average Order
Value (AOV) with a 3.5% increase from Q1 to Q2 and a further increase of 6%
from Q2 to date.
Financial performance
· CMO delivered a resilient performance against a difficult market
backdrop in H1 2024 which has been well-publicised. In H1 2024 GfK reported
YoY declines of 6% and 16.2% in the Builders Merchant and Tiles market,
respectively, with the online segment of the Tiles market particularly
challenging with a drop of 17.8% YoY.
· As a result, for H1 2024, total revenue was £30.3m (H1 2023:
£36.9m) and gross profit £6.4m (H1 2023: £8.0m).
· Operational costs reduced £1m year-on-year following planned
management action.
· EBITDA(1) was £38k (H1 2023: £613k).
· The Group continues to have a sound financial position. The Group's
net debt position is £2.2m (H1 2023: net cash £1m). Cash at the end of H1
2024 stood at £2.5m (H1 2023: £4.7m), with available facilities of £3.0m.
Market share gain and continued progress on strategy
· 2.7 percentage points growth in market share(2) of the online
Builders Merchant segment between Q2 2023 and Q2 2024.
· Continued delivery of the Group's mission to bring the widest range
of products to market through the launch of LANDSCAPING SUPERSTORE providing
200% more product choice to CMO customers.
· Launch of SUPER REWARDS customer loyalty program with purchase
frequency up 204% compared to the standard customer profile.
· Marketable database has increased 17% vs. H1 2023, in line with
targets, and will help us capitalise on continued growth in driving customer
retention.
· CMO has successfully migrated its server infrastructure to AWS,
ensuring best-in-class resilience, scalability, and the capability to
integrate new technologies in the future.
(1) Adjusted EBITDA is defined earnings before interest, tax, depreciation and
amortisation, foreign exchange, share option expense, and other costs as
defined by management. (2) Source: GfK.
Current Trading & Outlook
Like-for-like sales Q1 Q2 H1 July & August September Orders
(to date)
Building (16.2) % (10.0) % (13.0) % (7.6)% 7.4%
Plumbing (19.5) % (3.3) % (12.4) % (0.3)% (10.6)%
Tiles (41.9) % (30.1) % (36.3) % (23.5)% (29.8)%
Total (21.3) % (12.8) % (17.0) % (9.1)% 0.4%
Note: Like-for-like sales numbers provided are for sales, with the exception
of September, which are order intake figures
There are material signs of recovery. We are encouraged by improvements in key
market indicators: the first interest rate cut in several years, rising
consumer confidence, and the highest mortgage approval rates in three years.
These early signs suggest that people are beginning to reinvest in their
properties.
Trading in Q3 has seen a continuation of the trend seen earlier in the year
with sales stabilising. Notably, we are seeing a steady increase in Average
Order Value (AOV), particularly in September as we enter the peak trading
season. We continue to maintain the improvements made in gross margin.
The operational efficiencies and margin improvements we have achieved provide
strong leverage for future growth. We continue to maintain a strong focus on
cash with net debt expected to be £3.2m at year end.
Combined with the continued expansion of our websites and product range, the
management team are confident that CMO is well-positioned for growth as the
market continues to recover.
Dean Murray, Chief Executive of CMO Group PLC, commented:
"The market remains challenging, especially in the Tiles category, but I am
proud of the CMO team's commitment to our strategic initiatives. We have
successfully improved margins and implemented operational efficiencies, which
position us well for future growth. Our unique business model has allowed us
to increase our share in the online merchant market, and the launch of our
SUPER REWARDS loyalty program will help us capitalise on our growing customer
database.
There are encouraging early signs of market improvement, and Q3 trading has
shown positive trends. While conditions will remain challenging, I am
confident that the steps we have taken mean that CMO is prepared and primed
for growth as the market recovery gains momentum."
Enquiries
CMO Group PLC Via Instinctif
Dean Murray, CEO
Jonathan Lamb, CFO
Panmure Liberum Limited (Nominated Adviser & Broker) Tel: +44 20 3100 2000
Andrew Godber
Rupert Dearden
Satbir Kler
Instinctif Partners (Financial PR) Tel: +44 20 7457 2020
Justine Warren
Matthew Smallwood
Hannah Scott
About CMO Group PLC
Founded in 2008 as Construction Materials Online, CMO is the UK's largest
online-only retailer of building materials. The Company is disrupting
a £29 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 140,000 products through its many specialist SUPERSTORE websites which
recently underwent exciting new rebranding.
It's 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 most
products drop shipped directly from the manufacturers to its customers.
CMO's aim is to become the destination of choice for anyone building or
improving homes in the UK, providing the widest range, backed by specialist
expertise, and helpful customer solutions.
Forward looking statements
This announcement has been prepared by CMO Group PLC. To the extent it
includes forward-looking statements, these statements are based on current
plans, estimates, targets and projections, and are subject to inherent risks,
uncertainties and other factors which could cause actual results to differ
materially from the future results expressed or implied by such
forward-looking statements. Neither CMO Group PLC, nor any of its officers,
Directors or employees, provides any representation, assurance or guarantee
that the occurrence of the events expressed or implied in any forward-looking
statements in this announcement will actually occur. CMO Group PLC does not
undertake any obligation, other than in accordance with our legal and
regulatory obligations, to update or revise any forward-looking or other
statement, whether as a result of new information, future developments or
otherwise.
Business review
Market backdrop
H1 2024 showed little improvement in the market backdrop, with the headwinds
of 2023 continuing. Total construction output declined by 2%, with new works
dropping by 8%(1). Comparatively brick deliveries also fell by 9%(2). On the
other hand, Repair & Maintenance (R&M) grew by 9%(1), but this growth
was largely due to wage inflation and contractor supply issues, not increased
demand. The Builders Merchant market as a reflection of retail dropped by
6%(3).
Category Performance:
· Tiles(3): After a 29% decline in 2023, the tiles category saw a
further 17.8% drop in H1 2024. Both online and offline segments experienced
similar difficulties. Additionally, this year witnessed several significant
exits from the market.
· Plumbing & Heating(3): This category saw a modest decline of
2%.
Despite these challenges, the Group is pleased to report that it has
maintained its market share in the Builders Merchant sector. The second half
of the year is showing more positive trends. Moreover, the Builders Merchant
market has been supported mainly by the Heavy Side, which is an area the Group
hasn't fully exploited to date. This offers a major growth opportunity for the
Group as part of its strategic plans.
Online Segment Growth(3): The company has increased its share of the online
market, growing by 2.7 percentage points between Q2 2023 and Q2 2024.
Furthermore, CMO continues to excel in customer service, with all verticals
maintaining 'Excellent' Trustpilot ratings, surpassing industry averages.
Macroeconomic Improvements: Since the end of H1, the first interest rate cut
has taken place, and mortgage approvals have risen to their highest level
since September 2022. UK house prices returned to growth in September with a
rise of approaching 1%. These are important signs of a potential market
recovery. Consumer confidence has also improved throughout the period and is
now approaching long-term averages. Build cost inflation is trending down(4).
Market Outlook: While these positive changes will take time to fully impact
the market, there is growing confidence in a medium-term housing recovery. CMO
is closely watching the Labour government's efforts to remove barriers to
construction and will adapt to seize opportunities as they arise.
(1) Source: Office for National Statistics. (2) Source: Department for
Business and Trade. (3) Source: GfK. (4) Source: GfK. Decline in ASP in Heavy
Building Materials and Timber building materials during 2024.
H1 Results Summary
The H1 result has been impacted by well-publicised difficulties in the
construction sector. As a result, the group experienced £6.5m reduction in
sales in H1.
The impact of this decline has been largely mitigated by our focus on
maintaining margins and achieving cost savings of c. £1m through operational
efficiencies. As a result, EBITDA in H1 was £0.6m lower versus H1 2023 and
attributable to the Tiles business, with EBITDA for the Building and Plumbing
business maintained versus H1 2023.
The Group continues to have a sound financial position. Cash at the end of H1
2024 stood at £2.5m (H1 2023: £4.7m), with net debt of £2.2m and available
facilities of £3.0m. The movement in net debt includes the estimated (£1.5m)
in accelerated trade related creditor payments due to industry wide removal of
trade credit insurance and the final payments of deferred consideration of
£0.5m.
Operational initiatives
Our core Building and Plumbing categories have fared well and traded
resiliently. We have continued to build on our strategic pillars, growing
margin overall by a +0.5% and driving further improvements in carriage
recovery by 36%, on top of the gains made in 2023.
Stock availability and our long-standing partnerships with our suppliers have
also supported a reduction in pre-delivery cancellations by 29%, by providing
our customers with helpful solutions.
We have now seen AOV growth on a monthly basis throughout H1 2024 following
declines in H2 2023 and are now ahead of our prior year comparatives. We have
stepped up our technical product training across the business which is driving
enhanced basket sizes both through our quoted sales and our ecommerce
experience.
The launch of LANDSCAPING SUPERSTORE has followed similar and encouraging
growth to maturity patterns to that of our other organic store releases and
seen consecutive months of revenue growth since the beginning of this year.
The Tiles market remains challenging with our LFL sales reduced 31% compared
to H1 2023. However, we are seeing signs of recovery with deficit to the prior
year being closed monthly, along with an increased demand for Tile Samples as
we head into H2 2024. We are continuing to implement new initiatives in our
sample process to enhance customer experience and add further enquiries for
our team to support.
Strategic progress
A Fit-for-Purpose Model
CMO has a clear strategic vision: to become the destination of choice for
anyone building or improving homes in the UK. This vision will be realized
through CMO's unique mission-giving customers the confidence to build and
improve their homes by offering the widest range of products, backed by
specialist expertise and powered by helpful customer-focused solutions.
CMO's model is unique in the market. It offers a digital hybrid that disrupts
a traditionally offline industry with a digital-first approach. The product
offering, primarily based on a dropship model, provides operational, financial
and environmental advantages, including low capital expenditure, a negative
working capital cycle, and ultimately higher margins than traditional RMI
companies.
Key Strategic Initiatives
This year, CMO has made notable progress in delivering on its strategic
initiatives to further enhance the model and mission:
· Maturing of LANDSCAPING SUPERSTORE:
The organic launch of this new category supports CMO's mission to provide the
widest range of products. This store significantly expands the Group's
offerings in landscaping, with customer choice growing by approximately 200%
from CMOs previous offering, to over 6000 SKUs. Sales have grown monthly,
exceeding expectations in this important category.
· Introduction of SUPER REWARDS Loyalty Program:
Launched in mid-June 2024, the program aims to increase purchase frequency and
average order value (AOV) while boosting brand engagement. Although still in
its early stages, SUPER REWARDS has already generated 1% of Group revenue in
its first three months. Encouragingly, orders are doubling month-on-month,
with AOVs of engaged customers rising by around 170% compared to the base
case. Purchase frequency is also up by about 200%. The Group is optimistic
about the future impact of the program.
· Technology Upgrades-Migration to AWS:
As part of an ambitious technology initiative aligned with the strategic
roadmap, CMO has successfully migrated its server infrastructure to AWS. This
upgrade ensures best-in-class resilience, scalability, and the capability to
integrate new technologies in the future.
Financial Review
Total revenue for the six months ended 30 June 2024 was £30.3m (2022:
£36.9m). This volume reduction was mainly as a result of reduced market
demand and particularly the initiation of larger projects. We continue to
focus on factors within our control such as maintaining margin, improving
carriage recovery and overhead cost efficiencies. Ensuring only acceptable
margins has meant we have avoided competing in some product areas which along
with an ongoing contraction of credit insurance on account customers has also
been a challenge to sales growth.
To understand performance, it is necessary to separately analyse the Tiles
business, which continues to be significantly affected by the subdued market
conditions. The UK tile market has dropped in value terms an estimated 16.2%
year-on-year and an estimated 17.8% online YTD (source: GFK). Total Tiles
has performed in line with this market decline and is the primary driver of
the overall Group result. Performance in the SUPERSTORES, which represented
90% of total sales, has been more resilient and only accounted for 9% of the
decline in EBITDA excluding Group costs while Tiles, at 10% of total sales,
accounted for 91%.
As illustrated in the EBITDA bridge below, while margin has been adversely
affected by volume, EBITDA performance within Building and Plumbing was
maintained for the 6 months to June 2024 driven by a 0.5% gross product margin
improvement with both product and carriage margin showing positive movement
through the half. This margin rate improvement has been enhanced by savings
achieved across all cost categories reflecting the reduced activity levels.
Sales volume related margin reduced £0.8m compared to H1 2024. Margin
improvements driven by better pricing and purchase costs recovered £0.2m of
this and variable marketing spend a further £0.1m. Overhead cost reduction
contributed a further £0.45m resulting in EBITDA for Building and Plumbing
trading in line with H1 2023.
While the same volume impacts were seen at Tiles driving an adverse £0.8m in
sales volume related margin, the margin rate was also adversely impacted by
£0.2m in an intensely competitive market. Cost reduction initiatives,
again across a range of activities recovered £0.45m of this variance but were
insufficient to offset the reduction in volumes resulting in a net adverse
impact of £0.59m on Group EBITDA which in total reduced by £0.56m.
Performance for the Group showed a marked improvement in Q2 2024 when compared
to Q1 2024. The EBITDA bridges below show the majority of the positive impact
on EBITDA from the performance improvement across the group impacted in Q2
2024. Sales improved 14% in Building and Plumbing and 5% in Tiles in Q2 2024
compared to Q1. These sales volume improvements have resulted in an increase
in gross margin in CMO of £0.3m, marginally offset by rate reductions and the
cost of the volume related marketing spend (total £0.1m) to achieve the
higher sales. This gross margin improvement together with the cumulative
benefit of cost reductions which have delivered a benefit of £0.3m in the
second quarter has meant EBITDA in Building and Plumbing recovered
significantly in the second quarter to £0.3m. Tiles performance remained in
line with Q1. Costs have reduced by approximately £1m for H1 2024 compared to
H1 2023. The improvement in trading performance and continuing benefits of
cost reductions implemented are expected to deliver a continuing benefit
through the rest of the 2024 financial year and future periods.
Operating loss for the period to June 2024 was £1.3m (2023: £0.5m).
Exceptional costs for the period were £0.3m (2023: £0.1m) principally
relating to redundancy costs and acquisition integration. Amortisation and
depreciation costs reflect acquisitions, platform investment and right-of-use
asset costs increases and are in line with the charge for the period to June
2023.
The detailed profit and loss account is set out below:
Consolidated Income Statement for the Period Ended 30 June 2024
Period Period Year
ended ended ended
30-Jun-24 30-Jun-23 31-Dec-23
£000 £000 £000
Unaudited Unaudited Audited
Revenue 30,327 36,878 71,504
Cost of sales (23,916) (28,828) (56,584)
GROSS PROFIT 6,411 8,050 14,920
Administrative expenses (7,639) (8,551) (16,606)
OPERATING (LOSS) / PROFIT (1,228) (501) (1,686)
Finance income 0 1 0
Finance costs (384) (263) (642)
NET FINANCE COST (384) (262) (642)
(LOSS) /PROFIT BEFORE TAX (1,612) (763) (2,328)
Income tax expense 361 136 493
(LOSS) / PROFIT FOR THE PERIOD (1,251) (627) (1,835)
Other comprehensive income - - -
TOTAL COMPREHENSIVE INCOME (1,251) (627) (1,835)
Basic earnings per share -1.74 -0.87 -2.55
Diluted earnings per share -1.74 -0.87 -2.55
Adjusted Basic earnings per share -1.32 -0.69 -1.56
Adjusted diluted earnings per share -1.32 -0.69 -1.56
Consolidated statement of financial position
As at 30 June 2024
6 months 6 months Year
ended ended ended
30-Jun-24 30-Jun-23 31-Dec-23
Unaudited Unaudited Audited
£000 £000 £000
Assets
Current assets
Inventories 4,851 5,385 5,063
Trade and other receivables 2,431 2,659 1,951
Cash and cash equivalents 2,482 4,669 4,681
Total Current Assets 9,764 12,713 11,695
Non-current assets
Property plant and equipment 1,134 1,444 1,416
Right of use assets 1,109 1,182 1,109
Goodwill 20,445 20,481 20,445
Other Intangible assets 2,976 2,857 3,086
Deferred tax assets 1,176 460 817
Total Non-current assets 26,840 26,424 26,873
Total Assets 36,604 39,137 38,568
Liabilities
Current liabilities
Trade and other payables (15,567) (16,540) (15,781)
Loans and borrowings (3) (1) (2)
Liease liabilities (435) (585) (499)
Current tax liabilities 0 (56) 0
Total current liabilities (16,005) (17,182) (16,282)
Non-current liabilities
Loans and borrowings (4,750) (3,688) (5,250)
Lease liabilities (699) (621) (636)
Total non-current liabilities (5,449) (4,309) (5,886)
Total liabilities (21,454) (21,490) (22,168)
Net assets / (liabilities) 15,150 17,646 16,401
Consolidated statement of cash flows
6 months 6 months Year
ending ending ended
30-Jun-24 30-Jun-23 31-Dec-23
Unaudited Unaudited Audited
£000 £000 £000
Cash flow from operating activities
Loss for the period (1,251) (628) (1,835)
SBP credit 0 0 109
Finance costs 384 263 642
Corporation tax (361) (136) (493)
Operating profit / loss (1,228) (501) (1,577)
Depreciation 336 409 644
Amortisation 643 573 1,229
Decrease in inventories 211 69 391
(Increase)/Decrease in trade and other receivables (480) 73 781
(Increase)/Decrease in trade and other payables (17) 988 873
Net cash flow from operating activities (535) 1,611 2,340
Cash flow from investing activities
Payments to acquire intangible fixed assets (554) (472) (1,366)
Payments to acquire tangible fixed assets (21) (43) (50)
Cash outflow on business combinations 0 (1,000) (1,697)
Net cash flow from investing activities (575) (1,515) (3,114)
Cash flow from financing activities
Proceeds from other borrowing draw downs (500) (1,100) 462
Repayment of lease liabilities (283) (274) (576)
Interest paid on lease liability (46) (23) (96)
Interest paid (262) (239) (546)
Net cash flow from financing activities (1,091) (1,636) (756)
Net increase / (decrease) in cash and cash equivalents (2,199) (1,540) (1,529)
Cash and cash equivalents beginning of period 4,681 6,210 6,210
Cash and cash equivalents end of period 2,482 4,669 4,681
Stock levels at the half year have reduced by £0.5m compared to June 2023 as
we continue to rebalance our stock holdings towards the dropship model
efficiencies further managing operating costs. H1 2023 stock levels are
similarly £0.2m below the 2023 year-end.
Trade and other receivables are in line with 2023. A reduction in trade
debtors reflects the reduced availability of trade credit insurance on certain
customers and reduced order volumes as a consequence of limiting the level of
uninsured risk.
Trade and other creditors have decreased by £1m compared to June 2023, driven
mainly by reductions in trade creditor balances as supplier credit insurance
continues to be restricted offset by an increase in accruals and VAT creditor
balances previously reported.
Net debt has been further increased by planned CAPEX of £0.6m, predominantly
relating to development of the trading platforms, lease liabilities of £0.3m
and finance costs of £0.3m
Drawn facilities of £4.75m (31 December 2023: £5.3m) result in net debt of
£2.3m at the period end (31 December 2023: £0.5m). We continue to maintain a
strong focus on cash with net debt expected to be £3.2m at year end as we
enter our seasonal low trading period and continue to amortise the bank loan
facility. We maintain a sound financial position with an undrawn working
capital facility of up to £3m and flexible banking partner expected to
provide sufficient headroom for continued Group development.
Financing
The Group has banking facilities with Clydesdale Bank through to 2027. The
facilities comprise an amortising revolving credit facilities of £4.75m at
June 2023 and an undrawn working capital facility of up to £3m.
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 for the six
months ended 30 June 2024 were approved by the Board of Directors on 26
September 2023.
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 2023.
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 2023 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 2023
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 2024 and 30 June
2023 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 2024 has been prepared on the basis of the accounting policies
expected to be adopted for the year ending 31 December 2024. These are
anticipated to be consistent with those set out in the Group's latest annual
financial statements for the year ending 31 December 2023 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 2023 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 2023 annual financial
statements.
5. Segmental Analysis
The group currently only report on one performance line being the retail of
construction materials.
6. EBITDA
EBITDA (earnings before interest, tax, depreciation and amortisation and FX)
has been calculated as follows:
6 months 6 months
ended ended
30-Jun-24 30-Jun-23
Unaudited Unaudited
£000 £000
Operating loss (1,228) (501)
Depreciation and amortisation 979 981
Exceptional costs and FX costs 287 133
Adjusted EBITDA 38 613
7. 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
2024.
8. Dividends
No dividends were paid or proposed during the period and no dividend was paid
relating to financial year 2023.
9. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
6 months 6 months Year
ending ending ended
30-Jun-24 30-Jun-23 31-Dec-23
Unaudited Unaudited Audited
£000 £000 £000
Earnings per share are as follows
Earnings from continuous operations
Net profit / (loss) for the period attributable to the owners of the parent (1,251) (628) (1,835)
Add back : exceptional payroll and other expenses 299 133 605
Add back : costs incurred directly related to acquisitions and share option 109
expenses
Adjusted earnings (953) (495) (1,121)
Number of shares '000 '000 '000
Weighted average number of ordinary shares - basic earnings calculation 71,970 71,970 71,970
Effect of dilutive potential ordinary shares 217
Weighted average number of ordinary shares for the purposes of basic earnings 71,970 72,187 71,970
per share
Weighted average number of ordinary shares from share options - diluted
calculations
6 months 6 months Year
ending ending ended
30-Jun-24 30-Jun-23 31-Dec-23
Unaudited Unaudited Audited
pence pence pence
Basic earnings per share (1.74) (0.87) (2.55)
Diluted earnings per share (1.74) (0.87) (2.55)
Adjusted basic earnings per share (1.32) (0.69) (1.56)
Adjusted diluted earnings per share (1.32) (0.69) (1.56)
Basic earnings per share ("EPS") is calculated based on the weighted average
number of shares in issue. The table below shows the impact on EPS (''Adjusted
EPS'') of earnings before: interest; tax; depreciation and amortisation;
foreign exchange; share option expenses; restructuring, redundancy and
non-recurring payroll expenses; integration of acquisitions into the
superstore environment; one off infrastructure costs; acquisitions expenses;
and certain professional fees and expenses. Diluted EPS is calculated by
adjusting the weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. The Company being loss
making in the current period would mean that any exercise would be
anti-dilutive.
10. Loans and borrowings
6 months 6 months Year
ending ending ended
30-Jun-24 30-Jun-23 31-Dec-23
Unaudited Unaudited Audited
£000 £000 £000
Loans and borrowings
Bank borrowings (4,750) (3,688) (5,250)
(4,750) (3,688) (5,250)
On 1 July 2021, the Company 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 £10 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 can be used for
financing acquisitions permitted under the Revolving Facility ("Facility A")
and the proceeds of Facility B under the Revolving Facility 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 £250,000 on each quarter from 30 June 2023, until it is reduced by
£3 million on 30 June 2026.
At 30 June 2024 the balance drawn on Facility A totalled £4.27m (31 December
2023 : £5.25m). Facility B was not drawn at June 2024 or December 2023. The
limit on this facility is £3,000,000. The Group will be subject to banking
covenants on the renegotiated facilities, with the new covenants including a
minimum EBITDA target, a de minimis cash balance and capital expenditure
control, and the final instalment due on the acquisition facility is 30 June
2026, and the working capital facility 30 June 2027.
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