TIDMMRK
RNS Number : 1470Z
Marks Electrical Group plc
10 January 2024
Marks Electrical Group plc
Trading update for the nine months ended 31 December 2023
Marks Electrical Group plc ("Marks Electrical" or "The Group"),
a fast-growing online electrical retailer, provides a trading
update for the nine months ended 31 December 2023 ("the
period").
9 months ended 31 December 3 months ended 31 December
GBPm GBPm
FY24 FY23 YoY% FY24 FY23 YoY%
--------- --------- -------- ---------- --------- -------- ----------
Revenue 88.9 72.9 22.0% 35.1 29.8 17.8%
--------- --------- -------- ---------- --------- -------- ----------
Highlights
-- Strong growth in revenue during Q3-24 (October to December)
with revenue growth of 17.8% to GBP35.1m (Q3-23 GBP29.8m).
-- Year to date (YTD) revenue growth of 22.0% to GBP88.9m (2022 YTD: GBP72.9m).
-- Increased market share in the Major Domestic Appliances and Consumer Electronics markets.
-- In a challenging trading environment where consumers remain
highly price-conscious, our gross product margin did not increase
to the levels we expected, and despite proactive action on other
controllable costs, the impact of this in the peak trading period
has had a material impact on our full year profit guidance.
-- As a result, we now expect our full year revenue to be in the
range of GBP115-118m with EBITDA in the range of GBP5-6m. Going
forward, we expect to see continued revenue growth in-line with our
expectations, but remain cautious on the speed of recovery in
consumer buying patterns, which we expect to temporarily impact the
recovery of our gross product margin.
-- Our strategic decision to maintain our delivery &
installation services in-house allowed us to achieve record volumes
during peak trading, whilst maintaining our industry leading
Trustpilot score of 4.8. Furthermore, we have now reached over
60,000 reviews with 95% of those reviews being 4 and 5 star,
demonstrating the strength of our best-in-class customer
proposition.
-- Despite significant product margin challenges, we gained
market share whilst remaining profitable, provided industry leading
services to customers, maintained our continued focus on tight
overhead cost control and disciplined working capital and retained
our net cash balance sheet.
Mark Smithson, Chief Executive Officer, commented:
"I continue to remain proud of the entire team at Marks
Electrical for delivering a record peak trading period whilst
gaining market share and maintaining our industry leading
Trustpilot score of 4.8. This further demonstrates the strength and
attractiveness of our market-leading customer offering and as brand
awareness improves, we continue to see a strong repeat customer
rate.
Whilst I am personally frustrated about our expected margin
progression in the second half, I remain confident about our
long-term growth prospects and continue to be impressed by our
ability to deliver market share gains profitably, against a
fiercely competitive backdrop, whilst maintaining the highest
levels of customer service standards in the industry.
As we work tirelessly as a team to enhance our gross product
margin in the remaining months of FY24 and into FY25, I also know
from 37 years of trading that margin fluctuations are inevitable,
they present us with an opportunity to learn, and will ultimately
enable the Group to deliver long-term value creation and position
us as the UK's leading premium electrical retailer."
Enquiries:
Marks Electrical Group plc Via Dentons Global Advisors:
Mark Smithson, CEO
Tel: +44 (0)20 7664 5095
Josh Egan, CFO
Dentons Global Advisors (Financial PR)
Jonathan Brill / James Styles / Nishad Sanzagiri
Tel: +44 (0)20 7664 5095
markselectrical@dentonsglobaladvisors.com
Canaccord Genuity (NOMAD and Broker)
Max Hartley / George Grainger (NOMAD) / Kit Stephenson (Sales)
Tel: +44 (0) 207 886 2500
About Marks Electrical
Marks Electrical is a fast growing, highly scalable premium
electrical retailer which sells, delivers, installs and recycles a
wide range of household electrical products. The Group was founded
in Leicester in 1987 by Mark Smithson and has scaled into a
nationwide online retailer with a compelling growth track record,
thanks to its vertically integrated, low-cost, high-quality
operating model, supported by the ongoing structural shift of
consumers to purchase online. The Group operates within the UK
Major Domestic Appliances (MDA) and Consumer Electronics (CE)
market, estimated to be worth approximately GBP7 billion.
Primarily through its simple, clear and intuitive website -
markselectrical.co.uk - the Group offers over 4,500 products from
over 50 leading brands across its main product categories, which
include Cooking, Refrigeration, Washers & Dryers, Dishwashers
and Audio-Visual. These products are sourced from UK distributors
of the brands, with whom the Group maintains strong and direct
relationships. Marks Electrical delivers direct to customers in its
owned and branded vehicles, operated by the Group's skilled team of
delivery drivers, who are also able to offer installation and
recycling services.
For further information, visit the Marks Electrical corporate
website: https://group.markselectrical.co.uk and its retail
website: https://markselectrical.co.uk/.
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended. Upon
the publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
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END
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Grafico Azioni Marks Electrical (LSE:MRK)
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Grafico Azioni Marks Electrical (LSE:MRK)
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Da Gen 2024 a Gen 2025
