UK's Marks Electrical FY26 revenue falls on marketplace withdrawal

Marks Electrical

Today 07:13

Overview
UK online electrical retailer's FY26 revenue fell 8% as marketplace activity was reduced
Adjusted EPS for FY26 dropped to 0.67p from 1.54p, reflecting lower margin and sales
Company resolved CMA investigation with £0.7 mln penalty and £0.6 mln consumer redress

Outlook
Company expects FY27 sales growth and gross margin to be challenging due to UK macro headwinds
Marks Electrical says operational efficiencies and cost controls are expected to benefit FY27 adjusted EBITDA
Company reports current trading in line with expectations, with MDA activity in May tracking ahead year-on-year

Result Drivers
MARKETPLACE WITHDRAWAL - Revenue declined as co reduced low-margin marketplace activity to focus on direct website and telesales channels
COST CONTROLS - Distribution headcount and advertising spend were reduced, with operational efficiencies improving in H2
CATEGORY MIX - Consumer Electronics sales and margins fell sharply due to destocking, while Major Domestic Appliances sales were more resilient

Company press release: ID:nRSS9119Ia

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Adjusted EPS
 
GBP 0.007
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the household electronics peer group is "buy"
Wall Street's median 12-month price target for Marks Electrical Group PLC is GBp55.00, about 12.2% above its June 18 closing price of GBp49.00
The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 168 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)