Plymouth building materials online retailer CMO sees sales hit £77m
Online retailer of building materials, headquartered in Plymouth, CMO Group PLC has seen sales soar to £77million over the past year, despite the building industry being hit by product delays and shortages and continued Covid disruptions.
The company, now the largest online-only building materials retailer in the UK, revealed that total sales for 2021 increased by 47% to £77million from £52million in 2020.
In a business update for the year ended December 31, 2021, the Burrington Way-based business revealed second half revenue of £38m, a 33% increase on the second half of 2020. Like-for-like sales grew 12% year-over-year, and 30% year-over-year.
Strong sales growth was driven by improved revenue from CMO’s online hypermarkets and the continued growth of Total Tiles, acquired in December 2020, which recorded 10% year-on-year growth .
JTM Plumbing has performed in line with expectations since its acquisition in October 2021. Progress is underway towards the launch of plumbingsuperstore.co.uk which is expected in the second quarter of 2022, the company said.
During the second half of the year, widely reported industry headwinds including product delays and shortages were prominent, compounded by increased Covid disruption in the fourth quarter.
A continued focus on demand planning and a 29% increase in warehouse capacity to support an increase in inventory mitigated the worst of this disruption, CMO explained, but it is estimated that in the second half of the year, the opportunity cost to the group of these issues amounted to approximately 5% of expected sales.
Despite this, the company said it continued to see strong growth in the second half, with total sales growth of 33% and like-for-like one- and two-year growth of 1% and 28%, demonstrating the resilience of its business. economic model.
In the nine weeks of trading prior to this statement, CMO has seen improved product availability, with comparable revenue on shipped products 13% higher than last year.
With strong sales growth, and despite headwinds, the company expects to report full-year adjusted EBITDA (earnings before interest, tax, depreciation, amortization, exceptional and acquisition costs), a measure profitability, in line with market expectations.
CMO said that as it enters a new financial year, the markets in which it operates remain dynamic. With a strong order book and a disruptive position in its chosen markets, its Board of Directors is confident that CMO will deliver continued growth in the year ahead.
Dean Murray, Managing Director of CMO Group Plc, said: “We have had another good period of strong growth, further improving our proposition and growing our customer base by more than 30%.
“Our markets remain robust and we will continue to disrupt the traditional market by continuing to be innovative and expanding the product range for our customers.
“With our strong order book and positive signs of easing from the supply and distribution issues experienced in 2021, we enter 2022 with confidence.”
Business Live’s South West business reporter is William Telford. William has over a decade of experience reporting on the business scene in Plymouth and the South West. It is based in Plymouth but covers the whole region.
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CMO operates seven specialist websites: Roofingsuperstore.co.uk, Drainagesuperstore.co.uk, Insulationsuperstore.co.uk, Doorsuperstore.co.uk, Tileandfloorsuperstore.co.uk, cmotrade.co.uk and Totaltiles.co.uk. Its sites list more than 75,000 products.
It started out as a small business based at Plymouth Airport business park, but after compound growth of 43% over previous years, it now has a large head office in Burrington Way, where most of its more than 200 employees are based. The company said its market remains buoyant and the group is managing industry headwinds well with hopes of delivering double-digit sales growth in line with expectations for the full year.