Marks Electrical has announced its results for the six months ended 30 September 2024.
Sales for the period grew 9.3% year-on-year to £58.8m, while adjusted EBITDA was £2m at 3.4% margin.
Gross profit margin for the six months was 24.6%, down slightly from 24.9% in the previous year.
Looking ahead, the retailer expects a recovery in revenue growth in the second half and looking beyond 2025, Marks Electrical said it will harness its disciplined approach to cost control to best manage the ‘significant increases brought about by the recently announced rises to employer national insurance and the national minimum wage, following the UK Government’s autumn budget’.
Mark Smithson, ceo commented: “The first half has included two of the largest structural changes the business has seen, the departure from Euronics and the implementation of our new ERP system, but despite these, we continued to remain profitable and cash generative and grew revenue by 9.3% to £58.8m.
“These investments, while involving short-term challenges, have been made to position the business for long-term success. They will ensure that Marks Electrical is well placed to benefit when broader market sentiment picks up and will give us even greater vertical integration, visibility and control, enabling us to deliver growth, returns and value for all our stakeholders.
“I’m proud of the strong operational focus demonstrated throughout the Period from our team of dedicated colleagues, which has allowed us to maintain our 4.8 Trustpilot rating during what has been a challenging period of change for the business, and the patience of both our customers and suppliers during this period was highly appreciated.
“As the consumer has continued to trade-down, we have evolved our business to meet those needs, perhaps leaning too much into non-premium products, which has led to erosion in our premium average order value. The knock-on implications of this on our distribution costs are something that we need to actively address moving forward by pivoting back to our historically premium focussed operating model.
“Whilst this pivot back to premium is likely to have an impact on the speed of our revenue growth, we are focussed on continuing to execute our strategy of driving profitable market share gains, ultimately enabling the Group to deliver long-term value creation and become the UK’s leading premium electrical retailer.”
