Mark Smithson & Josh Egan of Marks Electrical discuss their Growth and Positive Outlook

Mark Smithson CEO & Josh Egan CFO of Marks Electrical #MRK discuss their Growth that saw first half revenue increase by 78% to £37.5m and rising market share, which gives them confidence about a positive outlook.

Financial highlights

· Strong first half revenue growth of 78% to £37.5m (H1-21 £21.1m), representing a two-year increase of 162% against the six months ended 30 September 2019 (H1-20 £14.3m)

· Profitability on-track, Adjusted EBITDA of £3.03m (H1-21 £2.95m), delivering a margin of 8.1%

· Continued focus on working capital management with strong operating cash conversion of 217% 

· Excellent free cashflow of £5.9m, representing a Free Cash Flow margin of 16%

· Adjusted EPS 2.14p, statutory EPS 1.55p(1)

Operational highlights

·  IPO on AIM successfully completed on 5 November 2021

·  Growth in Major Domestic Appliances ("MDA") market share from 1.2% in FY21 to 1.5% in H1-22(2), well positioned to achieve higher volumes in H2-22

· Expanded warehouse facility by 29,000 sqft improving layout and efficiency whilst securing future sales capacity

· Investments in the cost base to drive improvements in marketing, brand awareness and professionalisation of the business

· Modernisation and growth of the vehicle fleet & driver base, with an increase of 58% in delivery capacity since March-21, improving reliability and offering customers more flexible delivery options, whilst maintaining our cost of delivery

· Maintained inventory throughout the period, demonstrating the strength of our relationships with our suppliers and the agility of our business model

·  Maintained our commitment to sustainability, achieving carbon neutral operations in H1-22

About Marks Electrical

Marks Electrical sells, delivers, installs and recycles a wide range of household electrical products. The Marks Electrical group was founded in Leicester in 1987 by its Chief Executive Officer, Mark Smithson, and has expanded into a nationwide online retailer, with a strong track record of growth and scaling the business as a result of the consumer shift to online shopping.

Primarily through its retail website - markselectrical.co.uk - the Company offers over 3,000 products from over fifty brands across its main product categories, which include Cooking, Refrigeration, Washers & Dryers, Dishwashers and Audio-Visual. These products are sourced from UK distributors of the brands, with whom the Group maintains strong and direct relationships. Delivery to customers is operated by its own skilled team of delivery drivers in its owned and branded vehicles, who are also able to offer installation and recycling services.