TIDMMRK
RNS Number : 9223I
Marks Electrical Group plc
10 August 2023
Marks Electrical Group plc
AGM trading update for the four months ended 31 July 2023
Strong trading momentum driven by excellent customer service
Marks Electrical Group plc ("Marks Electrical" or "The Group"),
a fast-growing online electrical retailer, provides a trading
update for the four months ended 31 July 2023 ("the period"), ahead
of the Company's Annual General Meeting to be held today at 11:00
a.m. BST ("AGM").
4 months ended 31 July
GBP000
FY24 FY23 YoY%
--------- --------- -------- ------
Revenue 36,160 27,663 30.7%
--------- --------- -------- ------
Highlights
-- Strong trading period in the first four months of FY24 (April
to July), with revenue growth of 30.7% to GBP36.2m (4 months FY23
GBP27.7m)
-- Increased market share in Major Domestic Appliances ("MDA")
from 2.4% in Q1-23 to 3.0% in Q1-24, with Marks Electrical share in
the online segment of the market growing from 4.5% to 5.7%(1)
-- Increased market share in Consumer Electronics ("CE") from
0.3% in Q1-23 to 0.6% in Q1-24, with Marks Electrical share in the
online segment of the market growing from 0.6% to 1.0%(1)
-- Strong performance across categories with a particular
stand-out performance in televisions (+84%), washer-dryers (+83%),
and cordless vacuum cleaners (+62%)
-- Continued growth in next-day integrated, gas, electric and
television installation services, with over 4,500 installation
orders in the period, vs 1,500 in the prior year, a growth rate of
200%
-- Investment in distribution centre, vehicles and processes,
preparing us for peak autumn trading and our future growth
ambitions
-- Maintained industry leading Trustpilot score of 4.8 and
reached over 50,000 reviews with 95% of those reviews being 4 and 5
star, demonstrating the strength of our best-in-class customer
proposition
-- Robust balance sheet and net cash position, supporting the
proposed final dividend of 0.66p per share, subject to shareholder
approval at today's AGM
Mark Smithson, Chief Executive Officer, commented:
"We've made a fast start to FY24 with revenue growth of over 30%
against an MDA & CE market that is marginally down in the first
months of our financial year.
We've maintained our industry leading Trustpilot score of 4.8,
and reached over 50,000 reviews on Trustpilot, which I am
particularly proud of as it takes a combined effort from all our
excellent team members, from sales ordering, through to picking,
logistics, delivery, and customer aftercare, to deliver an
exceptional customer service.
Our focus and attention on growing our installation offering is
enabling us to create a truly differentiated, market-leading
proposition for customers, further enhancing the strengths of our
operating model. We have been very encouraged by the take-up of
this service, which is now available to over 65% of the UK
population on a next-day basis, and are excited about its
potential.
Despite a challenging market backdrop, including wage inflation
and strong competitor activity on gross margin, we have maintained
our tight control on inventory, overhead cost management and
disciplined capital allocation, ensuring we have a healthy cash
position and remaining focused on profitable market share gains as
our brand awareness continues to grow.
We've started August well and are laser-focused on maintaining
our performance management discipline on revenue, profit and cash
in order to continue to demonstrate our superior proposition and
become the UK's leading premium electrical retailer."
(1) Based on the Group's analysis of GfK Market Intelligence
sales tracking GB data, Major Domestic Appliances and Consumer
Electronics. During the year GfK reclassified floorcare from major
domestic appliances to small domestic appliances. As such the
current year 3.0% is on the new definition and the prior year 2.1%
has been restated and is now 2.4%. July market data unavailable at
the time of print (.)
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)
Jonathon Brill / James Styles / Fern Duncan Tel: +44 (0)20 7664
5095
markselectrical@dentonsglobaladvisors.com
Canaccord Genuity (NOMAD and Broker)
Max Hartley (Nomad) / Kit Stephenson (Sales) Tel: +44 (0) 207
886 2500
About Marks Electrical
Marks Electrical is a fast growing, highly scalable, technology
driven e-commerce electricals 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/ .
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