Online electrical retailer, Marks Electrical has posted results for its fourth quarter, ended 31 March, 2024.
Record full year revenue was posted at £114.3m, a growth of 16.9% year-on-year (FY23: £97.8m). For the fourth quarter, revenue was £25.3m, an increase of 2% year-on-year.
Gross product margin was maintained in the second half, as expected, and the group achieved an adjusted EBITDA of approximately £5m.
As Marks Electrical continues to build its national presence and scale, the retailer has decided to leave the Euronics buying group as at 31 March 2024. The group hopes this will enable it to develop closer, direct relationships with its suppliers, allowing it to drive growth and margin.
Mark Smithson, ceo, commented: “I am proud of the revenue growth we have achieved of 16.9%, in a flat Major Domestic Appliances and a declining Consumer Electronics market. In addition, the investments we have made in driver training and customer services have resulted in us improving our Trustpilot rating from 4.8 to 4.9, further demonstrating the strength and attractiveness of our market-leading customer offering and the hard-work all of our colleagues throughout FY24.
“As explained in our January trading update, in the current trading environment consumers remain highly price-conscious, which given our premium focus, continues to have an adverse impact on our average order value, resulting in customer order volumes growing faster than revenue. This impact will limit our ability for margin expansion in the short-term, when taking into account the relatively fixed cost of delivery.
“Despite this, we are very pleased with the growth in our order volumes and new customer acquisitions during the period and the strong growth we have seen in early April, giving us confidence that our fundamental strategy of continued profitable market share gains and excellent customer service will help us in delivering further growth.”
