REG - Marks Electrical Grp - Trading Statement

Marks ElectricalAnnouncement

10/08/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230810:nRSJ9223Ia&default-theme=true

RNS Number : 9223I  Marks Electrical Group plc  10 August 2023

Marks Electrical Group plc

AGM trading update for the four months ended 31 July 2023

Strong trading momentum driven by excellent customer service

 

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 2023 ("the period"), ahead of the Company's Annual General
Meeting to be held today at 11:00 a.m. BST ("AGM").

          4 months ended 31 July

£000
          FY24      FY23      YoY%
 Revenue  36,160    27,663    30.7%

 

Highlights

·Strong trading period in the first four months of FY24 (April to July), with
revenue growth of 30.7% to £36.2m (4 months FY23 £27.7m)

·Increased market share in Major Domestic Appliances ("MDA") from 2.4% in
Q1-23 to 3.0% in Q1-24, with Marks Electrical share in the online segment of
the market growing from 4.5% to 5.7%((1))

·Increased market share in Consumer Electronics ("CE") from 0.3% in Q1-23 to
0.6% in Q1-24, with Marks Electrical share in the online segment of the market
growing from 0.6% to 1.0%((1))

·Strong performance across categories with a particular stand-out performance
in televisions (+84%), washer-dryers (+83%), and cordless vacuum cleaners
(+62%)

·Continued growth in next-day integrated, gas, electric and television
installation services, with over 4,500 installation orders in the period, vs
1,500 in the prior year, a growth rate of 200%

·Investment in distribution centre, vehicles and processes, preparing us for
peak autumn trading and our future growth ambitions

·Maintained industry leading Trustpilot score of 4.8 and reached over 50,000
reviews with 95% of those reviews being 4 and 5 star, demonstrating the
strength of our best-in-class customer proposition

·Robust balance sheet and net cash position, supporting the proposed final
dividend of 0.66p per share, subject to shareholder approval at today's AGM

 

Mark Smithson, Chief Executive Officer, commented:

"We've made a fast start to FY24 with revenue growth of over 30% against an
MDA & CE market that is marginally down in the first months of our
financial year.

We've maintained our industry leading Trustpilot score of 4.8, and reached
over 50,000 reviews on Trustpilot, which I am particularly proud of as it
takes a combined effort from all our excellent team members, from sales
ordering, through to picking, logistics, delivery, and customer aftercare, to
deliver an exceptional customer service.

Our focus and attention on growing our installation offering is enabling us to
create a truly differentiated, market-leading proposition for customers,
further enhancing the strengths of our operating model. We have been very
encouraged by the take-up of this service, which is now available to over 65%
of the UK population on a next-day basis, and are excited about its potential.

Despite a challenging market backdrop, including wage inflation and strong
competitor activity on gross margin, we have maintained our tight control on
inventory, overhead cost management and disciplined capital allocation,
ensuring we have a healthy cash position and remaining focused on profitable
market share gains as our brand awareness continues to grow.

We've started August well and are laser-focused on maintaining our performance
management discipline on revenue, profit and cash in order to continue to
demonstrate our superior proposition and become the UK's leading premium
electrical retailer."

 

 

((1) Based on the Group's analysis of GfK Market Intelligence sales tracking
GB data, Major Domestic Appliances and Consumer Electronics. During the year
GfK reclassified floorcare from major domestic appliances to small domestic
appliances. As such the current year 3.0% is on the new definition and the
prior year 2.1% has been restated and is now 2.4%. 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)

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

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

Canaccord Genuity (NOMAD and Broker)

Max Hartley (Nomad) / Kit Stephenson (Sales)
                                             Tel: +44
(0) 207 886 2500
 

 

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 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  TSTGZGMRVGDGFZG