CMO, which has experienced a 63 per cent increase in sales, has agreed terms to buy JTM Plumbing Ltd, a digital retailer of plumbing and heating supplies in a cash purchase for £5.7m. The business will be marketed and traded under the plumbingsuperstore.co.uk URL and allows building materials specialist CMO to extend into a complementary category. This follows on from its acquisition of Total Tiles and further acquisitions are being targeted.
CMO’s chief executive Dean Murray said: “We have grown organically and by making acquisitions and that remains our strategy. We will continue to add products and services and are looking at further acquisitions. “We are constantly looking across the market to what will fit, businesses that are similar to ourselves, that are purely online and with a similar ethos.”
CMO which is the largest pureplay online retailer of building materials will launch a Trade App later this year for its customers. Interim results released by the business for the half year ended June 30, 2021, show revenue of £382.m, up from £23.4m on the same period last year.
CMO operates seven websites: Roofingsuperstore.co.uk, Drainagesuperstore.co.uk, Insulationsuperstore.co.uk, Doorsuperstore.co.uk, Tileandfloorsuperstore.co.uk, cmotrade.co.uk and Totaltiles.co.uk and relies on a dropship model for delivery.
Murray added: “I would like to take this opportunity to extend a warm welcome to our new investors who came on board at IPO in July and to thank all of our colleagues for their continued hard work and commitment at this time. I am delighted to report a strong set of results meeting the expectations set at IPO. Our strategy is to take advantage of the channel shift online and low penetration of internet-driven sales in an enormous and evolving marketplace, augmented by our dropship, asset light delivery model.
“I am also pleased to report a positive contribution from Total Tiles and the team in their first six months of trading within the enlarged CMO Group. The current challenges facing our industry are well documented however we are managing these well and remain confident of achieving continued double-digit sales growth in H2 to meet the board’s expectations.”
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