REG - Marks Electrical Grp - Q2 Trading Update

Marks ElectricalAnnouncement

Thu 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250925:nRSY7197Aa&default-theme=true

RNS Number : 7197A  Marks Electrical Group plc  25 September 2025

Marks Electrical Group plc

Q2 Trading Update

Marks Electrical Group plc ("Marks Electrical" or "the Group"), the online
electrical retailer, today announces a Q2 trading update in respect of the
full year to 31 March 2026 ("the year" or "FY26").

At the Full Year Results in June 2025, as part of the Group's pivot back to
the premium segment of the market, we noted that we had experienced lower
revenue during Q1-FY26. Disappointingly, this trend has continued into Q2-FY26
with both Major Domestic Appliances ("MDA") and Consumer Electronics ("CE")
markets down year on year. We have also continued to see consumers remaining
highly price conscious and scaling back on discretionary spending. This has
impacted our average order values and in turn has resulted in higher relative
delivery costs.

Compounding the challenging market backdrop, we continue to face cost
headwinds with increased technology and ongoing costs of our new ERP system
along with higher employee related costs, impacting our distribution costs and
overheads. We remain happy with the performance of the new ERP and the
efficiencies it will drive as we return to growth.

Management remains focussed on delivering profitable market share growth and
maintaining a disciplined approach to capital allocation. During H1-FY26 we
have taken several measures to control our distribution costs and overheads
but remain committed to maintaining our outstanding customer service levels
and delivering our next day delivery and installation service to customers. We
are also taking a number of steps to optimise business performance in our
transport operations and allocation of marketing spend in order to best manage
short-term market challenges.

As we look ahead to H2-FY26 and our peak trading period, we have made a
strategic decision to invest into stock and expect revenue in the second half
to exceed that in H2-FY25.  Whilst we expect to see a return to revenue
growth in H2-FY26, the weaker trading in H1-FY26, coupled with the reduced
operating leverage, is expected to have a material impact on our full year
profit guidance and we now expect adjusted EBITDA for FY26 to be approximately
£1.7 million. In light of this performance, the Board has decided to delay
any decision on the interim dividend at the time of the Interim Results and
will re-consider this and the quantum of any final dividend at the time of the
Group's Full Year Results.

The Group expects to release its Interim Results for the six-month period
ending 30 September on 13 November 2025.

Mark Smithson, Chief Executive Officer, commented:

"Clearly, I am very disappointed that sales in Q2-FY26 continued the trend we
noted in our FY-25 preliminary announcement. That said, we have built a strong
business over the last few years, with growing brand recognition, nationwide
distribution and installation capability. We continue to focus on margin but
with increasing employee costs and increased technology cost for our new ERP
system, we have not yet been able to exploit the operating leverage
effectively. With a more balanced product mix as we enter the peak period of
our trading, we remain confident in a stronger H2 performance.

Long term, as the economic environment and market backdrop improve, our
vertically integrated business model and commitment to delivering an
exceptional service for our customers will enable us to leverage higher
average order values and drive improved margins."

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

Enquiries:

Marks Electrical Group
plc                                                    Via
DGA Group:

Mark Smithson
(CEO)
      Tel: +44 (0)20 7664 5095

Dipesh Mistry (Interim CFO)
 
 

 

DGA Group (Financial PR)

Jonathon Brill / James Styles
                                                               Tel:
+44 (0)20 7664 5095

markselectrical@dgagroup.com (mailto:markselectrical@dgagroup.com)
 
 
 
 
 

Canaccord Genuity (NOMAD and Broker)

Max Hartley / George Grainger
                            Tel: +44 (0)20 7523 8000
 

 

 

 

About Marks Electrical

Marks Electrical is a highly scalable, technology driven e-commerce electrical
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 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 £7 billion.

Primarily through its simple, clear and intuitive website -
markselectrical.co.uk - the Group offers over 4,500 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/) .

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTPPUWWBUPAPUC