Record revenues boosts online retailer’s momentum

Online electrical retailer Marks Electrical has revealed record results, months after the business listed on the stock market.

The Leicester-based group increased annual revenues by 44% to £80.5m and it expects its full year adjusted EBITDA will be in line with its target of 9.0%.

It also said its “trading momentum has continued during the start of April, setting us up well for our FY23 financial targets”.

Marks Electrical floated on the Alternative Investment Market in November at 110p per share, which valued the company at £115m. After rising in its first few weeks, its share price has since slipped back and closed on Friday at 95p.

Marks Electrical chief executive Mark Smithson, who founded the business in 1987, was pleased to “achieve a record year, despite a challenging market environment”.

He said: “The fourth quarter was another excellent trading period for us, with 19% revenue growth vs. a particularly strong comparative of 127% in the prior year. Our disciplined focus on margin management, capital allocation and cash generation has also led to a strong returns profile from our asset light operating model.

“Our USP of free next day delivery with our own fleet of vehicles, combined with our capacity unconstrained single site location, is helping us deliver operational excellence and gain market share in a highly competitive market.

“We are well placed to seize the opportunities ahead thanks to our compelling customer proposition, low-cost operating model and continued focus on profitable market share growth, with more and more people from across the UK coming into contact with the Marks brand for the first time.”

Panmure Gordon analyst Tony Shiret said: “Unlike many other 2021 consumer IPOs, Marks Electrical has delivered in line with expectations and continues to flourish.

“We continue to think that Marks Electrical will end up a very large company and we remain enthusiastic buyers.”