Marks Electrical Group (AIM:MRK), the online electrical retailer, posted full-year underlying revenue of £108.4m for the year ended 31 March, down 7.5% from £117.2m a year earlier, as it deliberately scaled back its marketplace presence to concentrate on its own website and telesales channels.
Adjusted EBITDA fell to £2.5m from £4.2m in FY25, in line with previously issued guidance, though the second half recovered sharply, delivering EBITDA of £2m against just £0.5m in the first half, with second-half revenue up 4.6% on the first half.
Underlying gross margin held at 24.0% against 24.4% in the prior year, as the group exited an unfavourable consumer electronics inventory position while its core major domestic appliances category proved resilient.
Net cash ended the period at £4.4m, down from £8.8m, and no final dividend was proposed, with the board prioritising a return to trading profit growth in FY27.
After the period end, Marks Electrical agreed a settlement with the Competition and Markets Authority, resulting in a financial penalty of £0.7m (reduced from £1.2m following a settlement discount) and consumer redress of approximately £0.6m, both to be covered from existing cash and treated as exceptional items.
"After a challenging first half, we were able to deliver an improved second half performance thanks to our disciplined focus on margin and operational cost management," Chief Executive Mark Smithson, who, added that the group is targeting sustainable growth in both revenue and profitability in FY27.
Current trading is in line with market expectations, with major domestic appliances activity in May tracking ahead year-on-year and demand for televisions and sound systems rising ahead of the FIFA World Cup.
