Marks Electrical reported a profit boost and surge in sales in its trading update for its fourth quarter.
The electricals retailer pulled in adjusted EBITDA of around £5m for the year ended 31 March, as it increased its market share in the major domestic appliances and consumer electronics market.
Additionally, the business achieved record full-year sales of £114.3m, up from £97.8m in FY23, which more than doubled the revenue seen in its year prior to listing.
Marks Electrical said further improvements in working capital and inventory turn during the year helped it achieve a closing net cash position of £7.8m, which took into account strategic investments in vehicles, equipment, facilities and systems.
The retailer also said it had left the Euronics buying group, as of 31 March, enabling it to establish closer, direct relationships with its manufacturer partners, providing it with further opportunity to drive growth and margin in the future.
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Marks Electrical CEO Mark Smithson said: “As explained in our January trading update, in the current trading environment consumers remain highly price-conscious, which given our premium focus, continues to have an adverse impact on our average order value, resulting in customer order volumes growing faster than revenue.
“This impact will limit our ability for margin expansion in the short-term, when taking into account the relatively fixed cost of delivery.”
The company said its full-year results for the period would be announced on 27 June.
Smithson continued: “Despite this, we are very pleased with the growth in our order volumes and new customer acquisitions during the period and the strong growth we have seen in early April, giving us confidence that our fundamental strategy of continued profitable market share gains and excellent customer service will help us in delivering further growth.”
In January, Marks Electrical lowered its full-year profit guidance, despite a boost in sales, after margins failed to grow as expected in a challenging trading environment.
While its sales rose 22% to £88.9m in the nine months to December 31, gross product margin did not increase to the levels it expected over the quarter.
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