Building materials firm CMO warns over profits amid construction woes

Sales for the full year are expected to fall 14 per cent to around £71.5m, roughly as expected, but the company warned that underlying earnings are now expected to plummet to around £1m, less than half the £2.1m notched up in 2022.

In August, it had guided for underlying earnings of around £2.5m.

Chief executive Dean Murray said: “With macro-economic headwinds continuing to impact the construction sector, we proceed with caution for the outlook for 2024, but remain confident in our model and strategy to take the business forward, and our ability to deliver profitable progress.”

But CMO said that, despite the disappointing last quarter, it had successfully delivered on some key strategic priorities, including improving product margins and carriage cost control.

Britain’s construction sector has been under pressure after interest rates have been raised to levels not seen since the 2008 financial crisis, with the Bank of England pushing through 14 increases in a row until finally pausing in September last year.

Housebuilders have been hit hard, with many of the big players issuing profit warnings last year, as rising mortgage costs saw demand slump in the property market.