28th Feb 2025 09:06
(Alliance News) - CMO Group PLC on Thursday announced plans to cancel its shares from trading on AIM, and noted a soft January market followed by improvements this month.
Shares in CMO closed 67% lower at 1.35 pence on Thursday in London, having dropped by as much as 80% earlier in the day.
The stock was down a further 1.9% at 1.30p early on Friday morning.
The Plymouth, England-headquartered online building materials retailer said it "has undertaken a review of its strategic options", and landed on a departure from AIM as "the best course of action".
CMO explained that "central to the board's decision is the additional funding requirements of the business for near-term working capital requirements and to support medium-term growth towards the end of 2025".
CMO further explained: "Despite an extensive search the directors have concluded that there is no route to source the additional funds the group requires while the company remains on market.
"The cancellation is expected to provide access to significant cost savings and identified sources of potential additional funding which will support the group's immediate funding requirements and fund growth going forward."
CMO noted however that its lending bank has provided additional funding, and given further flexibility to its existing facilities. These will remain in place following the cancellation.
The firm has scheduled a general meeting on March 17, for shareholders to vote on the cancellation proposals. If the resolution is passed, CMO expects the cancellation to become effective on March 27.
Also on Thursday, CMO said January "saw the sharpest December-to-January drop in the Consumer Confidence index since 2011 falling to minus 22" and that this contributed to "a softness in the RMI market".
It said DIY segment orders in January fell 15% on-year, with sales at the group level declining by "a similar amount".
However, CMO added: "February has seen an improving trend as the Group mobilises around current market dynamics.
"The group is encouraged by the longer-term macro indicators which do indicate the market should see some positive volume growth in late H2 and into 2026, as the current uplift in mortgage approvals translates into RMI intent."
By Emma Curzon, Alliance News reporter
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