CMO Group acquires plumbing retailer in £5.7m deal
Plymouth-headquartered CMO Group, the UK’s largest online-only retailer of building materials has bought a plumbing busines.
CMO, which has seen a 63% hike in sales, has agreed terms to snap up JTM Plumbing in a £5.7m deal. JTM are a digital retailer of plumbing and heating supplies. This new business will be marketed under the domain name of plumbingsuperstore.co.uk.
It comes just seven months after it acquired Total Tiles and CMO chief executive Dean Murray said the business is planning further expansion.
He 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 is now the UK’s largest online-only retailer of building materials, and its unaudited Interim Results for the six months ended June 30, 2021, reveal revenue increased by 63% to £38.2m (H1 2020: £23.4m), reflecting strong organic growth and the £8.8m contribution from the acquisition of Total Tiles.
Gross profit increased to £7.4m (H1 2020: £3.4m), and adjusted EBITDA (earnings before interest, tax, depreciation, amortisation, exceptional and acquisition costs) increased to £2.0m (H1 2020: £0.8m).
The company said its market remains buoyant and the group is managing industry headwinds well with an expectation to deliver double-digit sales growth in-line with full-year expectations.
CMO Group is a UK-based online retailer of building materials, offering products in tiling, roofing and drainage materials across seven specialist websites. The company’s 75,000 listed products for sale makes it the country’s largest online-only operator in the sector as of 2021. The company was started in 2008.
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