Marks Electrical reports record sales amid ‘significant strategic change’

Marks Electrical reported record sales in its annual pre close trading update ahead of its full year results, as it experienced a “period of significant strategic change and progress”.

The appliance specialist, which saw its profit halve in November, pulled in full-year revenues of £117.2m for the 12 months ended 31 March, up 2.6% year-on-year.

Additionally, its EBITDA hit approximately £4.2m for the period, as it maintained its group margin in its second half, improved its distribution efficiency and experienced controlled marketing costs.

Major domestic appliances volume was up 5% while consumer electronics volume also increased 50%.

Looking ahead, the business noted that it was “actively pivoting” the company back to its “historically successful premium focus” to deliver a boost to its margin performance.

Marks Electrical CEO Mark Smithson said: “FY25 was a period of significant strategic change and progress and whilst the margin and growth rates were not at the higher levels seen in recent years, nor where I would like the business to be, I continue to be proud of the performance the team has delivered, whilst tackling the significant operational distractions brought about by the changes we decided to make.

“These changes will position the business for long-term success and ensure that Marks Electrical is well placed to benefit when broader market sentiment picks up, giving us even greater vertical integration, improved visibility and enhanced automation, further enabling us to deliver growth, returns and value for all our stakeholders.”

He added: “I am encouraged by the margin improvements we have seen in the second half of FY25 and despite a continued tough consumer retail market with declining average order values, we have remained profitable, highly cash generative, and delivered revenue growth, all whilst maintaining our excellent standards of customer service.

“This improvement in the second half gives us confidence that the fundamental strategy we have maintained over the last four years, of continued profitable market share gains and excellent customer service, will help us in delivering further profitable growth in the years ahead.”

In June 2024, Marks Electricals also posted record sales in its previous set of full-year results.

However, profits dipped due to its lower margins and higher distribution costs.

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