Marks Electrical profits have slumped even while sales increased in what its CEO described as a “challenging but rewarding year” for the retailer.
In its full-year results for the 2024 financial year, Marks Electrical pre-tax profits fell to £616,000 from £6.4m the previous year.
The retailer said the fall in pre-tax profits was due to “non-underlying costs” and “weaker trading profitability”.
Revenues were up to £114.3m, up from £97.8m in 2023, and the retailer’s adjusted EBITDA was £5m, down from £7.5m from the previous year.
Administrative expenses jumped by 34% to £17.5m, while distribution costs surged 53% to £11.1m.
Chief executive Mark Smithson described the period as “challenging but rewarding”, saying that “in an environment where consumers remained highly price-conscious, we continued to make good strategic progress across multiple fronts as a business”.
He added: “Our strategy and approach leaves us very well positioned for a market recovery when it occurs… While I continue to be personally frustrated about our margin progression during the year, I remain confident in our long-term growth prospects and continue to be impressed by our ability to deliver market share gains profitably, against a fiercely competitive backdrop, while maintaining the highest levels of customer service standards in the industry.”
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