29th Nov 2024 13:13
(Alliance News) - CMO Group PLC on Friday said it anticipates a decline in revenue for its full-year results, driven by a "difficult trading environment".
The Plymouth, England-based online-only retailer of building materials said it expects to report revenue between GBP62 million and GBP63 million for 2024, which would be between a 13% and 14% fall from GBP71.5 million the year before.
It also forecast adjusted earnings before interest, tax, depreciation and amortisation between GBP500,000 and GBP700,000, which would be between a 25% and 57% decline from GBP900,000 last year.
However, the group said it expects its second-half adjusted Ebitda to be around 75% higher year-on-year.
Operational efficiencies and cost savings of around GBP1.7 million during the year have helped to support its results too, CMO added.
Chief Executive Officer Dean Murray said: "The recent budget announcements by the new government have driven further challenges to an already difficult trading environment. This has resulted in declines in consumer confidence and a further squeeze on the availability of trade credit driving softness into the key trading period. Whilst we support the government's commitment to house building, we lend our voice to our peers in encouraging Chancellor of the Exchequer Rachel Reeves to rethink a number of the proposals due to come into effect in 2025.
"I am proud of the management team who have successfully delivered a raft of operational efficiencies, and focussed on the controllable elements of margin, cost and cash, so that we expect to deliver significant Ebitda growth in the second half. The continued growth of our market share of the online Builders Merchant market demonstrates the resilience of our model. I am confident that the steps we have taken mean that CMO is prepared and primed for growth."
Shares in CMO Group were down 1.8% at 14.00 pence each in London on Friday afternoon.
By Emily Parsons, Alliance News reporter
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