Trading Update

RNS Number : 8396X

Marks Electrical Group plc

10 January 2022

 

Marks Electrical Group plc

Trading update for the nine months ended 31 December 2021

Continued strong trading momentum with record sales performance

Marks Electrical Group plc ("Marks Electrical" or "The Group"), a fast-growing online electrical retailer, today announces its trading update for its third quarter ended 31 December 2021 ("the period" or "Q3-22").

	9 months ended 31 December £000			3 months ended 31 December £000
	2022	2021	YoY%	2022	2021	YoY%
Revenue	59,788	38,584	55.0%	22,317	17,518	27.4%

Financial highlights

· Record trading period in Q3-22 with 27.4% revenue growth to £22.3m (Q3-21 £17.5m), including a strong performance during the seasonally important Black Friday and Christmas trading events

· Year to date (YTD) revenue growth of 55.0% to £59.8m (2021 YTD: £38.6m), keeping the business on track to deliver our 2022 revenue target

· Operational leverage achieved during the period, driving margin expansion, with the Group on track to achieve its full-year Adjusted EBITDA margin target of 9%

· Maintained inventory levels during peak trading period and continued focus on working capital management

Operational highlights

· Growing in-house fleet of delivery vehicles achieved record delivery volumes during the quarter, with scope for further capacity utilisation as we continue to grow

· Market share growth in Major Domestic Appliances segment continued during the period

· Strong performance in Television segment with YTD revenue from this category up 103% YoY

· Improved Trustpilot rating from 4.7 to 4.8

Mark Smithson, Chief Executive Officer, commented:

"I am delighted by our performance in the third quarter of this year, with year on year growth of 27.4%, and continued trading momentum against particularly strong comparatives. This high growth rate allowed us to continue to gain market share.

In order to improve brand awareness, we continued our investment in TV campaigns, leading to increased website traffic and promoting the Marks Electrical brand. This, combined with our revised approach to digital marketing, helped attract new customers to our site.

We've continued to work closely with all our suppliers in order to maintain inventory levels during the period, and have successfully coped with the continued surge in demand for our products, achieving record delivery numbers and ensuring we maximise the value on each vehicle. In a market with supply issues, this demonstrates the strength of our relationships with our suppliers and the agility of our business model to cope with peak demand.

I am particularly proud of our further improvement on Trustpilot from 4.7 to 4.8, recognising the market-leading customer service that we provide. Our team has delivered a record quarter, handling increased throughput in our warehouse and via our expertly trained team of delivery drivers. Our call volumes have increased materially and our team have stepped up to deliver during the busiest time of the year, demonstrating the agility of our colleagues and business model to adapt quickly when volumes increase.

Our momentum has continued into January and we look forward to maintaining our performance management discipline on revenue, profit and cash in the final months of the year."

 

Enquiries:

Marks Electrical Group plc

Mark Smithson, CEO  [e-mail]

Josh Egan, CFO      [phone]

Engine MHP (Financial PR)

Andrew Jaques    [e-mail]

Alan Tovey    [phone]

Rachel Mann

Panmure Gordon (NOMAD and Broker)

Oliver Cardigan, Ailsa Macmaster (Corporate Finance)                                                       [phone]

Erik Anderson (Corporate Broking) 

 

END

 

 

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