REG - Marks Electrical Grp - Related Party Transaction

Marks ElectricalAnnouncement

17/11/2022 08:30

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RNS Number : 7478G  Marks Electrical Group plc  17 November 2022

17 November 2022

Marks Electrical Group plc

("Marks Electrical" or "Company")

Related Party Transaction

The Company confirms that its wholly owned subsidiary, Marks Electrical
Limited ("MEL") settled a net cash payment of £153,420.04 on 16 November
2022, to Mark Smithson (CEO) in relation to previously disclosed historical
arrangements. The payment is subject to PAYE and NIC taxes resulting in a
total outflow of £336,162.43.

This final transaction brings to a close the aforementioned historical
arrangements as outlined in the Company's Admission Document at the time of
its IPO. There is no financial impact on the Company or its current trading
given that these balances were already provided for on the Balance Sheet at
the year ended 31 March 2022, and fully disclosed in the related party
transaction note within the financial statements. Further details of this
arrangement are described in the Admission Document, dated 5 November 2021.

Related party transactions

Given Mark Smithson's position as a Director and substantial shareholder of
the Company, the settlement to Mark Smithson is deemed to be a related party
transaction pursuant to AIM Rule 13 of the AIM Rules for Companies.

Under the AIM Rules, where a company enters into a related party transaction,
the independent directors of that company are required, after consulting with
the company's nominated adviser, to state whether, in their opinion, the
transaction is fair and reasonable in so far as its shareholders are
concerned.

The Independent Directors, being Marnie Millard, David Wilkinson and Aly
Fadil, have considered the terms of the settlement and having consulted with
Panmure Gordon, the Company's nominated adviser, the Independent Directors of
the Company believe that the terms of the settlement are fair and reasonable
in so far as the Company's shareholders are concerned.

 

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)

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

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

Panmure Gordon (NOMAD and Joint Broker)

Oliver Cardigan / Dougie McLeod (Corporate Finance)
                                      Tel: +44 (0) 207 886
2500

Erik Anderson (Corporate
Broking)

Berenberg (Joint Broker)

Matthew Armitt / Michelle Wilson / Richard Bootle (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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