Marks Electrical Group (AIM:MRK) said full-year revenue for the year ending 31 March 2027 is expected to be broadly in line with market expectations. But the AIM-listed online electrical retailer now expects Adjusted EBITDA for the year to come in ahead of expectations, at no less than £3.75m.
The upgrade reflects operational efficiencies, fixed cost optimisation and product gross margin improvements that boosted profitability in the first half.
The update follows a tougher FY26, when underlying revenue fell 7.5% to £108.4m, and adjusted EBITDA dropped to £2.5m from £4.2m, as the group scaled back marketplace activity to focus on its own website and telesales channels. That year ended with net cash of £4.4m, down from £8.8m, and no final dividend as the board prioritised a return to profit growth.
Chief executive Mark Smithson said the company continues to face "significant cost inflationary headwinds", particularly in fuel costs, but expressed confidence heading into its peak trading period.
Philip Luke De Villanueva will join as Chief Financial Officer and director from 1 December, succeeding Tom Pallatt, who is stepping down from the board. De Villanueva currently leads finance for Gamma Communications' Enterprise Markets unit and previously spent almost a decade at Balfour Beatty. Audit Chair Helen Flear will oversee the finance function until he joins.
Interim results for the six months to 30 September are expected in November.