Marks Electrical reported a surge in sales in its trading update for its fourth quarter.
The electricals retailer said it recorded full year revenue of £114.3 million, up from £97.8 million in FY23, representing a growth rate of 16.9 per cent. It also increased its market share in the major domestic appliances and consumer electronics market.
Marks saw a profit boost in the quarter, achieving an adjusted EBITDA of around £5 million for the year ended 31 March.
The retailer also said it had left the Euronics buying group, saying this enabled it to establish closer, direct relationships with its manufacturer partners, providing it with further opportunity to drive growth and margin in the future.
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.
“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 announced it lowered its full year profit guidance despite higher sales in its Q3 and growth in market share. In the three months to 31 December, the retailer saw revenue growth of 17.8 per cent to £35.1 million. However, the company said these figures did not increase to the levels it expected.
