REG - Marks Electrical Grp - Trading Update

Marks ElectricalAnnouncement

10/01/2022 07:05

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220110:nRSJ8396Xa&default-theme=true

RNS Number : 8396X  Marks Electrical Group plc  10 January 2022

Marks Electrical Group plc

Trading update for the nine months ended 31 December 2021

Continued strong trading momentum with record sales performance

 

Marks Electrical Group plc ("Marks Electrical" or "The Group"), a fast-growing
online electrical retailer, today announces its trading update for its third
quarter ended 31 December 2021 ("the period" or "Q3-22").

          9 months ended 31 December       3 months ended 31 December

£000
£000
          2022       2021       YoY%       2022       2021       YoY%
 Revenue  59,788     38,584     55.0%      22,317     17,518     27.4%

 

Financial highlights

·      Record trading period in Q3-22 with 27.4% revenue growth to
£22.3m (Q3-21 £17.5m), including a strong performance during the seasonally
important Black Friday and Christmas trading events

·      Year to date (YTD) revenue growth of 55.0% to £59.8m (2021 YTD:
£38.6m), keeping the business on track to deliver our 2022 revenue target

·      Operational leverage achieved during the period, driving margin
expansion, with the Group on track to achieve its full-year Adjusted EBITDA
margin target of 9%

·      Maintained inventory levels during peak trading period and
continued focus on working capital management

 

Operational highlights

·      Growing in-house fleet of delivery vehicles achieved record
delivery volumes during the quarter, with scope for further capacity
utilisation as we continue to grow

·      Market share growth in Major Domestic Appliances segment
continued during the period

·      Strong performance in Television segment with YTD revenue from
this category up 103% YoY

·      Improved Trustpilot rating from 4.7 to 4.8

 

Mark Smithson, Chief Executive Officer, commented:

"I am delighted by our performance in the third quarter of this year, with
year on year growth of 27.4%, and continued trading momentum against
particularly strong comparatives. This high growth rate allowed us to continue
to gain market share.

In order to improve brand awareness, we continued our investment in TV
campaigns, leading to increased website traffic and promoting the Marks
Electrical brand. This, combined with our revised approach to digital
marketing, helped attract new customers to our site.

We've continued to work closely with all our suppliers in order to maintain
inventory levels during the period, and have successfully coped with the
continued surge in demand for our products, achieving record delivery numbers
and ensuring we maximise the value on each vehicle. In a market with supply
issues, this demonstrates the strength of our relationships with our suppliers
and the agility of our business model to cope with peak demand.

I am particularly proud of our further improvement on Trustpilot from 4.7 to
4.8, recognising the market-leading customer service that we provide. Our team
has delivered a record quarter, handling increased throughput in our warehouse
and via our expertly trained team of delivery drivers. Our call volumes have
increased materially and our team have stepped up to deliver during the
busiest time of the year, demonstrating the agility of our colleagues and
business model to adapt quickly when volumes increase.

Our momentum has continued into January and we look forward to maintaining our
performance management discipline on revenue, profit and cash in the final
months of the year."

 

 

Enquiries:

Marks Electrical Group plc

Mark Smithson,
CEO
investors@markselectrical.co.uk (mailto:investors@markselectrical.co.uk)

Josh Egan, CFO
 
                +44 (0) 116 2515515

Engine MHP (Financial PR)

Andrew Jaques
 
markselectrical@mhpc.com (mailto:markselectrical@mhpc.com)

Alan
Tovey
 
+44 (0) 203 128 8540

Rachel Mann

Panmure Gordon (NOMAD and Broker)

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

Erik Anderson (Corporate
Broking)

 

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  TSTFLFEDLIIDIIF