10th Jan 2025 14:17
(Alliance News) - CMO Group PLC on Friday said it maintained a strong focus on cash and managing its cost base as it expects adjusted earnings at the bottom of a range it had previously guided for 2024.
The Plymouth, England-based online-only retailer of building materials anticipates to report 2024 adjusted earnings before interest, tax, depreciation and amortisation of around GBP500,000 for 2024, which would be down 44% from GBP900,000 in 2023.
That is on the lower end of what it had forecast for 2024 in November, which had been a range between GBP500,000 and GBP700,000.
Net debt as at December 31 meanwhile is expected to have increased on-year to GBP5 million from GBP600,000.
Back in November, the company had 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.
The company on Friday said that its lending bank remained fully supportive.
"The group can continue to work within its existing facilities and the bank has provided additional flexibility to provide the group the liquidity to meet its current working capital requirements. The bank has stated its intention to continue to support the group through the ongoing provision of its current debt facilities which are committed to June 2027.
"The directors are also in discussions with the bank about further flexibility to allow the full use of existing facilities which will provide sufficient working capital for the next 12 months. This process is expected to take around a month to complete," CMO said.
CMO shares were 4.1% higher at 9.63 pence each on Friday afternoon in London.
By Tom Budszus, Alliance News slot editor
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