Retailer, Marks Electrical has released a pre-close trading update for the 12 months ended 31 March 2025 (FY25).
Record full year revenue of £117.2m, represented a year-on-year growth of 2.6%, while gross margin was maintained in the second half and improved distributions efficiency, along with controlled marketing cots, has enable the group to achieve a fully year adjusted EBITDA of around £4.2m.
As the company moves forward, it expects to continue to improve its cash position as its significant cash outflows for operational upgrades and the new ERP system come to an end.
Mark Smithson, ceo, commented: “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.
“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.”
