Marks Electrical profits fell 14.8% despite sales soaring in its first half as its move to introduce its own installation service hit its margins.
Adjusted EBITDA fell from £2.7m last year to £2.3m for the six months ended 30 September 2023m however, it expects this pressure to ease in its second half
Sales at the electricals retailer jumped almost 25% to £53.9m for the period. It continued to notch up double-digit sales growth in October and made a strong start to November, which put it on track to hit its full-year targets..
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Growth in the company’s major domestic appliances market share rose from 2.4% last year to 2.9% over the half, it said.
Marks Electrical saw particularly high growth in its televisions, washer-dryers and American fridge-freezers categories
Marks Electrical CEO Mark Smithson said: “Our strategic decision to add in-house installation services to our offering has strengthened the group’s premium service proposition, alongside the creation of our own ME Academy training facility.
“These additions, whilst margin dilutive in the short term, will enable the group to deliver long-term value creation and position us as the UK’s leading premium electrical retailer.”
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