Marks Electrical Group
plc
Pre close trading update for
the twelve months ended 31 March 2024
Marks Electrical Group plc ("Marks
Electrical" or "the Group"), a fast-growing online electrical
retailer, provides a trading update for its fourth quarter ended 31
March 2024 ("the period" or "Q4-24"), ahead of announcing its Full
Year Results for the 12 months ended 31 March 2024 on 27 June
2024.
|
12 months ended 31 March
£m
|
3 months ended 31 March
£m
|
|
FY24
|
FY23
|
YoY%
|
FY24
|
FY23
|
YoY%
|
Revenue
|
114.3
|
97.8
|
16.9%
|
25.3
|
24.8
|
2.0%
|
Highlights
· Record
full year revenue of £114.3m (FY23: £97.8m) representing a growth
rate of 16.9%, and more than double the revenue we achieved in the
year prior to listing (FY21: £56.0m).
· Increased market share in the Major Domestic Appliances and
Consumer Electronics markets.
· Gross
product margin was maintained in the second half as expected, and
the Group has achieved an adjusted EBITDA of approximately
£5.0m.
· Further improvements in working capital and inventory turn
during the year helped the Group achieve a closing net cash
position of £7.8m, taking into account strategic investments in
vehicles, equipment, facilities and systems.
· Improved industry-leading Trustpilot rating from 4.8 to 4.9,
demonstrating the strength of our best-in-class customer
proposition.
· As
Marks Electrical continues to build its national presence and
scale, we have made the strategic decision during the period to
leave the Euronics buying group as at 31 March 2024. This will
enable the Group to establish closer, direct relationships with its
manufacturer partners, which will provide further opportunity to
drive growth and margin in the future, and is the next natural step
in our growth ambitions.
Mark Smithson, Chief Executive Officer,
commented:
"I am proud of the revenue growth we
have achieved of 16.9%, in a flat Major Domestic Appliances and a
declining Consumer Electronics market. In addition, the investments
we have made in driver training and customer services have resulted
in us improving our Trustpilot rating from 4.8 to 4.9, further
demonstrating the strength and attractiveness of our market-leading
customer offering and the hard-work all of our colleagues
throughout FY24.
As we focus on positioning our
business to deliver long-term growth and value creation, our
decision to exit the Euronics buying group represents the next
logical step in that journey, further building on the direct
relationships we have with our brand partners. We anticipate that
our departure will lead to revenue and margin upside in the
medium-term and in addition, once the exit has concluded, our £1.7m
balance sheet investment crystallises into cash, expected in June
2024.
As explained in our January trading
update, in the current trading environment consumers remain highly
price-conscious, which given our premium focus, continues to have
an adverse impact on our average order value, resulting in customer
order volumes growing faster than revenue. This impact will limit
our ability for margin expansion in the short-term, when taking
into account the relatively fixed cost of delivery.
Despite this, we are very pleased
with the growth in our order volumes and new customer acquisitions
during the period and the strong growth we have seen in early
April, giving us confidence that our fundamental strategy of
continued profitable market share gains and excellent customer
service will help us in delivering further growth."
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 £7 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 public
domain.