REG - Marks Electrical Grp - AGM Trading Update

Marks ElectricalAnnouncement

11/08/2022 07:00

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RNS Number : 6340V  Marks Electrical Group plc  11 August 2022

Marks Electrical Group plc

AGM trading update for the four months ended 31 July 2022

Continued strong trading momentum despite challenging market back-drop

 

Marks Electrical Group plc ("Marks Electrical" or "The Group"), a fast-growing
online electrical retailer, provides a trading update for the four months
ended 31 July 2022 ("the period"), ahead of the Company's Annual General
Meeting to be held today at 11:00 a.m. BST.

          4 months ended 31 July

£000
          2023      2022      YoY%
 Revenue  27,663    24,335    13.7%

 

Highlights

 * Strong trading period in the first four months of FY23, with revenue growth of
13.7% to £27.7m (4m FY22 £24.3m) against a particularly challenging market
back-drop

 * Growth in Major Domestic Appliances ("MDA") market share from 1.5% in Q1-22 to
2.1% in Q1-23, with our share in the online segment of the market growing from
2.5% to 3.8%((1))

 * Growth in Consumer Electronics ("CE") market share from 0.2% in Q1-22 to 0.3%
in Q1-23, with our share in the online segment of the market growing from 0.3%
to 0.6%((1))

 * Strong performance driven across categories but particularly in televisions,
vacuum cleaners, washers & dryers, and air conditioning

 * Maintained inventory levels, improving inventory turn, and continued focus on
working capital management

 * Industry leading Trustpilot score of 4.8, demonstrating the enduring strength
of our customer proposition

 * Robust balance sheet and strong cash position, supporting the proposed final
dividend of 0.67p per share, subject to shareholder approval at today's AGM

 

Mark Smithson, Chief Executive Officer, commented:

"We've started the year well despite a very tough market back-drop with the
Group's sales for the first four months up 13.7% compared with the online MDA
and CE markets being down over 20% in the first months of our FY23.

We've seen strong competitive activity both in pricing and marketing, with
heavy discounting of headline prices and higher cost per click marketing
expenses. Despite this, we have maintained our tight control on inventory,
cost management and disciplined capital allocation, ensuring we are in a
healthy cash position and remaining focused on profitable market share gains.

Our differentiated operating model, leading customer service and free next day
delivery provides a unique offering that sets us apart from the competition.
I'm proud of the performance our team has delivered in a very challenging
market. Whilst the remainder of the year is difficult to predict, our focus on
maintaining a market leading customer proposition and healthy cash flow
provides us with the best platform to generate continued profitable market
share growth".

 

((1) Based on the Group's analysis of GfK Market Intelligence sales tracking
GB data. July market data unavailable at the time of print.)

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
 
Tel: +44 (0)20 7664 5095

James Styles
 
                        markselectrical@dentonsglobaladvisors.com
(mailto:markselectrical@dentonsglobaladvisors.com)

Fern
Duncan

Panmure Gordon (NOMAD and Joint Broker)

Oliver Cardigan, Ailsa Macmaster (Corporate Finance)
                                     Tel: +44 (0) 207 886
2500

Erik Anderson (Corporate
Broking)

Berenberg (Joint Broker)

Matthew Armitt / Michelle Wilson / Jack Botros (UK Investment Banking)
                     Tel: +44 (0) 20 3207 7800

 

About Marks Electrical

Marks Electrical is a fast growing, highly scalable, technology driven
e-commerce electricals 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 up 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 £8.0 billion.

Primarily through its simple, clear and intuitive website -
markselectrical.co.uk - the Group offers over 4,000 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
(https://group.markselectrical.co.uk/)  and its retail
website: https://markselectrical.co.uk/ (https://markselectrical.co.uk/) .

 

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