CMO Stores, currently owned by private equity firm Key Capital Partners, intends to seek admission of its shares to trading on the Alternative Investment Market (AIM).
CMO (originally Construction Materials Online) operates seven specialist websites, Roofingsuperstore.co.uk, Drainagesuperstore.co.uk, Insulationsuperstore.co.uk, Doorsuperstore.co.uk, Tileandfloorsuperstore.co.uk, cmotrade.co.uk and Totaltiles.co.uk, which collectively list more than 75,000 products for sale.
The directors said that they believe that there is opportunity to develop the business further and expand into new segments.
“This will be supplemented by selective, opportunistic acquisitions that will strengthen existing product categories or provide an entry point for new categories,” they said.
Key Capital Partners (KCP) took majority ownership of CMO in 2017 from the founders Mark Tasker, Gary Tasker, Rob Kavanagh and Brian Field. The business has grown and helped pay the bills for KCP but has yet to show a profit.
CMO Stores Group turned over £45m in 2019 (2018: £39m) and made a pre-tax loss of £2.2m (2018: £1.8m loss).
Chief executive Dean Murray said: “We are delighted to announce our intention to list on AIM signifying an exciting new chapter in the group's long-term development. 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. We will support this through targeted category expansion and a multi-channel marketing plan to drive revenue growth and margin enhancement.”
Admission is expected to take place in early July 2021.