Domestic appliance specialist sees revenue pass £42m mark

Online retailer Marks Electrical has grown its revenue by 15.1% to £42.1m after delivering a resilient performance against a market backdrop it described as “tough.”

The Leicester-headquartered electronics and domestic appliances specialist told the London Stock Exchange this morning (8 November) it was “on track” to achieve its full-year targets after registering a strong performance across all of its major product categories.

While Marks’ profits decreased marginally, dropping from £3m in H1-22 to £2.7m, the firm says its balance sheet is “robust” and “debt-free.”

The company reported a closing net cash position of £7.7m.

Operational highlights during the period included a 35% spike in sales of A-rated energy efficient laundry appliances and further expansion into Glasgow, Edinburgh, Cornwall and parts of Wales.

Marks Electrical CEO Mark Smithson said: “I’m proud of the performance we’ve delivered against a tough back-drop, with the Group’s sales up 15.1% in a very challenging market where the online MDA and CE markets were down over 15% in our first half. This further demonstrates the resilience of our business model and the attractiveness of our market-leading customer offering.

“Our focus on operational excellence, customer service, and improving brand awareness has enabled us to continue to gain share in a very competitive market, where our share grew from 1.6% to 2.1% of the overall MDA market and from 2.6% to 3.9% in the online segment. As more people across the UK come into contact with the Marks Electrical proposition and become customers, we are able to harness our highly efficient, single-site operational model to drive profitable market share growth.

“The strong competitive activity we saw in pricing and marketing during the first half has begun to ease more recently and despite the margin pressure, we were able to achieve an Adjusted EBITDA margin of 6.3%, keeping us on track to achieve our full year objectives and continuing to demonstrate the differentiated margin proposition of our operating model.

“As growth momentum continues to build going into the peak trading period, with an acceleration in October and a strong start to November, our focus on operational excellence and cash flow generation, combined with our net cash position, provides us with a robust platform to generate continued profitable market share growth and deliver on our full year targets.”