Marks Electrical Group, the Leicester-based online electrical retailer, has hailed record revenue and robust profitability in its unaudited preliminary results for the year ended 31 March 2023 (FY23).
Full-year revenue hit £97.8m, growing from £80.5m in the year prior, while the firm “maintained market-leading profitability despite external cost headwinds,” resulting in a full year adjusted EBITDA of £7.5m (up from £7.2m last year) and a statutory profit before tax of £6.4m (up from £3.8m last year).
Looking ahead, the company’s start to its next year has been positive, with strong trading momentum in the first two months of FY24, with revenue growth exceeding 30% year-on-year.
Mark Smithson, Chief Executive Officer, said: “We delivered another strong performance over the year, with revenue growth of 21.5%, which was particularly pleasing when compared to a prior year comparative of 44% and a difficult economic backdrop in which both the Major Domestic Appliances and Consumer Electronics markets have declined year-on-year.
“The market share gain we’ve achieved in the online MDA market from 3.5% to 4.7% has been driven by the strength of our high-quality business model, our people and the attractiveness of our market-leading customer offering.
“More customers are discovering Marks Electrical and our focus on stocking the right products, at the right price, with the fastest and most convenient delivery & installation options sets us apart from the competition, enabling us to continue to grow, attract talent, strengthen our operational capacity and further develop our service offerings.
“During the year we were laser-focused on customer service excellence and maintained our market-leading 4.8 Trustpilot score, whilst also developing our new gas, electric and television installation offering to over 65% of the UK on a next-day basis. This market-leading speed of service delivery is seeing very strong demand, and we are excited about its prospects in FY24 and beyond.
“Despite some external cost headwinds in FY23, we were able to continue to achieve a market-leading adjusted EBITDA margin of 7.7%, demonstrating our differentiated operating model and sharp focus on all elements of our value chain, underpinned by our unique and scalable single-site fulfilment and distribution model.
“As we look to FY24, we believe that our current market share continues to provide significant scope and opportunity for growth, regardless of the economic backdrop. We have been pleased to see continued growth of over 30% in April and May and a very strong start to June.
“We are focused on maintaining our performance management discipline on revenue, profit and cash in order continue to demonstrate our superior proposition and become the UK’s leading premium electrical retailer.”
