Marks Electrical has posted its full-year trading results, showing an improved second half of the year with improved losses. However, revenues were down.

In the 12 months to March 31, underlying revenue fell 7.5% year on year from £117.2m to £108.4m, due to the group discontinuing its “low margin, often loss-making” marketplace activity to focus on organic routes to market.

Loss before tax was around £0.4m, but was an improvement from the year prior, which saw a loss of £1.7m.

Adjusted EBITDA was £2.5m, down from £4.2m last year. Marks Electrical said it saw a “much improved” performance in the second half of the year, with a good peak outturn also.

The group maintained a Trustpilot rating of 4.8 from 110,000 reviews, and its brand loyalty metric improved from 28% last year to 30% this year.

On outlook, it said current trading is in line with expectations, with the FIFA World Cup providing a “notable pick up” in demand for TV and sound systems.

The group is well positioned for the current financial year, but said consumer confidence “remains weak” due to high inflation, interest rates, unemployment, and concerns about the impact from the Middle East. It added that it is taking a more “cautious outlook” on sales growth and gross margin.

Marks Electrical chief executive Mark Smithson said: “With the strong business that we have, with growing brand recognition, nationwide distribution and installation capability, I am pleased that 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.

“We are well-positioned heading into FY27 with positive trading momentum and a strengthened cash position. We are targeting sustainable growth in both revenue and profitability in FY27 as our focus on margin and operational efficiency yields positive results. We do, however, remain mindful of the well-documented macro-economic factors within the UK around inflation, interest rates, and current unemployment levels, all of which create trading headwinds that we have to navigate to the best of our ability.

“I have personally led the business for nearly 40 years now, and so this is nothing new for me, and we have successfully navigated several economic cycles. Significant progress has been made behind the scenes to strengthen our foundations. We are building a business for the future, and our focus on delivering best-in-class customer service continues to underpin that ambition.”

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