REG - Marks Electrical Grp - Trading Update

Marks ElectricalAnnouncement

10/01/2023 07:00

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RNS Number : 1645M  Marks Electrical Group plc  10 January 2023

Marks Electrical Group plc

Trading update for the nine months ended 31 December 2022

Continued strong trading momentum with improved profitability

 

Marks Electrical Group plc ("Marks Electrical" or "The Group"), a fast-growing
online electrical retailer, provides a trading update for the nine months
ended 31 December 2022 ("the period").

 

          9 months ended 31 December       3 months ended 31 December

£000
£000
          FY23       FY22       YoY%       FY23       FY22       YoY%
 Revenue  72,918     59,788     22.0%      29,772     22,317     33.4%

 

Highlights

·      Strong trading period in Q3-23 (October to December) with revenue
growth of 33.4% to £29.8m (Q3-22 £22.3m)

·      Year to date (YTD) revenue growth of 22.0% to £72.9m (2022 YTD:
£59.8m)

·      Operating leverage achieved during the period, driving margin
expansion against the first half, with the Group on track to achieve its full
year targets

·   Strong performance driven across product categories but particularly in
A-rated energy efficient laundry appliances, televisions, refrigeration and
small domestic appliances

·     In-house fleet of delivery vehicles achieved record delivery volumes
in the quarter, during which we also saw continued adoption of our in-house
installation service with over 3,000 installations now completed since launch
in August 2022

·      Maintained inventory levels during the peak trading period and
continued focus on tight cost control and disciplined working capital
management

 

Mark Smithson, Chief Executive Officer, commented:

"I am proud of the entire team at Marks Electrical for delivering a record
quarterly performance, with year-on-year growth of 33.4% against a tough
economic back-drop. This further demonstrates the resilience of our business
model and the attractiveness of our market-leading customer offering, which
more people are discovering up and down the country.

To continue our focus on growing brand awareness, we further invested in
highly targeted television, radio and out-of-home campaigns over the
Black Friday and Christmas sales peaks. This led to increased website traffic
and broad-based revenue growth across the UK, but with particularly strong
improvements year-on-year in London, South East England and the East Midlands.

We've worked closely with our suppliers throughout the quarter, enhancing our
position as a growing, but agile, national retail partner of choice. As supply
has stabilised during the last 12 months, we have been able to capitalise on
our strong net cash position to enhance our inventory range and product
availability, further improving our offering for customers.

After an improvement in profitability in the third quarter, we look forward to
maintaining our performance management discipline on revenue, profit and cash
in order to achieve our full year targets and continue to demonstrate our
differentiated proposition."

 

 

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 Broker)

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

Erik Anderson (Corporate Broking)
 
 

 

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 £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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