An online construction materials retailer founded by four roofers over a meal in a Chinese restaurant has seen sales grow by a jaw-dropping 220% in just three years – with revenue now predicted to hit £50million in 2019.
Plymouth’s cmostores.com is continuing to see rapid expansion with 2018’s sales having increased by 44%.
The firm, now based at the city’s Burrington Business Park, said its e-commerce model is continuing to grab market share from traditional builders’ merchants.
It said consolidated group revenue rose 220%, from £12.1million at the end of 2015 to £38.6million in the year to December 31, 2018.
The business is now predicting further turnover growth to about £50million in the current financial year. It will soon be launching two new superstores.
Over the past 12 months, the company has seen a 35% increase in visits to its four online superstores, which supply in excess of 70,000 products across the build cycle to trade and DIY customers.
The business is also expanding its trade offering so professional contractors can now benefit from trade credit, exclusive discounts, rebates and rewards, in order to drive new accounts and sales from larger building firms.
“Online retail has revolutionised the high street and the many benefits of internet shopping including improved product choice as well as time and cost savings are increasingly being taken into more traditional and trade sectors by forward-looking e-commerce businesses,” said Andy Dunkley, cmostores.com’s chief executive. “As a result, we’re seeing phenomenal growth with our disruptive model already having a major impact on more traditional builders’ merchants.
“Over the past year, we’ve been continuing to invest in developing our operational and executive team to ensure our business is scalable with further significant expansion expected as we focus on enhancing our trade division.
“As a business, we are well on track with our plans and have an ambitious vision to establish ourselves as the leading brand in online construction products.”
Established in 2008, and previously known as Construction Materials Online or CMO, the company was actually hatched in a Chinese restaurant when four roofers nearing retirement had the idea.
It is a second-generation family business which now employs a 100-strong team at its new, larger headquarters.
Private equity house Key Capital Partners (KCP), made an £8.65million investment in the business in 2017 having recognised its potential.
The business won the Excellence in Customer Service Award at the 2019 Plymouth Business Awards.
Sue Packer, chief financial officer, added: “We have a clear plan and these latest results mark another key milestone in our development.
“We are financially robust and have huge potential for further growth. Already, we have been able to establish ourselves as a credible alternative by putting customers firmly at the centre of our proposition.
“Investment in providing user-friendly platforms, backed up by a knowledgeable sales team, has set us apart.
“We also place great emphasis on building strong, mutually-beneficial relationships with our supply partners enabling us to add the latest, innovative products to our online superstores. We look forward to building on this success as we continue to serve both DIY enthusiasts and the building trade.”
In 2018 cmostores.com acquired Webestores, integrating it into the company’s online platform as doorsuperstore.co.uk, alongside its existing roofingsuperstore.co.uk, drainagesuperstore.co.uk and insulationsuperstore.co.uk websites.
“Doorsuperstore is flying and will be this year’s best growth performer,” Ms Packer added.
