Profits return at online building firm despite tough conditions

Online building supplies firm CMO Group have swung back into profit following a tough two years of trading.

The Plymouth firm has released its first set of results as an AIM listed company.

CMO describes itself as a disruptor and is the UK’s largest online retailer of building materials and supplies.

The company has been badly hit by inflation, the fall in consumer spending and the rising cost of materials over the last two years.

Set against a challenging market for retail revenue at the firm increased by nine per cent to £83.1m compared to £76.3m last year.

Revenue was up by 9.3 per cent to £42.3m in the second half of the year.

Adjusted EBITDA was £2.1m while operating profit was £600,000 compared to a £3.3m loss last year.

Trading in first quarter of 2023 was in line with management expectations but was 10 per cent down against a strong 2022.

Chief executive Dean Murray said: “Despite the macroeconomic challenges in 2022, CMO continued to grow sales, while also generating more repeat sales and increased average order values, further validating its model and continuing to disrupt the largely traditional builders merchant market.

“Our strategy remains unchanged, and we are focused on continuing to drive profitable sales growth through our existing SUPERSTORES and through the creation of new channels. The launch of PLUMBING SUPERSTORES represents a significant addition to our portfolio of SUPERSTORES and allows us this year to capitalise on our previous acquisitions of JTM Plumbing and Clickbasin.

“The new financial year has begun in line with our expectations however the economic situation remains challenging and the timing of recovery in consumer confidence uncertain. As we continue to expand our SUPERSTORE portfolio and market leading product offer, the board is confident that its proven model will deliver value for shareholders in the short, medium, and long term.”