Marks Electrical is ‘well positioned’ for a market recovery after posting a record year

Marks Electrical posted revenue of £114.3m for the 12 months to March 31, 2024, up 16.9% year on year from £97.8m and marking the first time the retailer’s revenue has exceeded £100m.

Adjusted EBITDA was down year on year from £7.5m in 2023 to reach a total of £5m, which the retailer said was in line with its guidance.

Marks Electrical grew its market share in its main markets, including growth in the major domestic appliances sector increasing 2.5% to 2.8%. In consumers electronics it was up slightly from 0.3% to 0.5% during the year.

The retailer has also “successfully transitioned” away from the Euronics buying group, after announcing its separation from the group earlier this year. It aims to build relationships with manufacturers as an individual retailer.

Marks Electrical said it is optimistic about the year ahead after reporting double-digit revenue growth in the months of April, May and June, picking up from the “weaker” start to the year from January to March.

Chief executive Mark Smithson said: “During what was a more challenging year for the group, in an environment where consumers remained highly price-conscious, we continued to make good strategic progress across multiple fronts as a business. I am proud of the ongoing commitment and dedication of our entire team of customer-focused colleagues.

“Over the past year we invested in our operations and systems to position the business for long-term success, navigated a trade-down in customer buying preferences, managed the inflation increases impacting our cost base and continued to make a profit. Having doubled revenue since IPO, we’ve also managed to grow our market share profitably, and thanks to our disciplined approach to capital allocation, we’ve consistently returned a dividend to our shareholders, while retaining a net cash position. Our strategy and approach leaves us very well positioned for a market recovery when it occurs.”

He continued: “Our relentless focus on operational excellence and customer service has enabled us to continue to gain share in a very competitive market, growing our share from 2.5% to 2.8% of the overall Major Domestic Appliances market and from 4.7% to 5.3% in the online segment, with huge opportunities ahead, both in MDA and in other segments of Consumer Electronics and Small Domestic Appliances.

“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, whilst maintaining the highest levels of customer service standards in the industry.

“The first three months of FY25 have been encouraging and we have been pleased to see a return to double-digit growth during the period, providing us with a robust platform to continue driving profitable market share gains, and ultimately enabling the group to deliver long-term value creation and become the UK’s leading premium electrical retailer.”