(Alliance News) - CMO Group PLC on Friday said it is planning an initial public offering on London's AIM market in early July, as it capitalises on trends for online shopping and home renovations.
The online-only retailer of building material sells over 75,000 products - including tiles, roofing materials and insulation - through its seven websites. The firm said it expects to continue benefitting from the strength of the home improvement market and the long-term shift to online shopping.
"CMO is disrupting a GBP27 billion predominantly offline market with a digital-first proposition and market-leading product choice, supported by high quality customer service and technical expertise," the company said.
In a trading update, CMO said it made a strong start to the year, with like-for-like sales growth for the five months to the end of May more than 30% better than the same time last year. Total sales, including acquisitions, were up 70% year-on-year.
The UK has seen a boom in home improvement during the pandemic, benefitting the likes of Travis Perkins PLC and Kingfisher PLC.
"We are delighted to announce our intention to list on AIM signifying an exciting new chapter in the group's long-term development," commented Chief Executive Dean Murray.
"We have enjoyed strong, consistent growth driven by the group's successful customer proposition, first mover advantage and scalable digital platform. Our clear and focussed strategy will enable us to continue to capture further profitable share in an under-penetrated market as customers increasingly move online."
CMO did not price its potential float. Liberum Capital is acting as adviser and sole bookrunner for the IPO while GCA Altium is the financial adviser.
By Will Paige; willpaige@alliancenews.com
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Kingfisher (KGF)
Travis Perkins (TPK)