Marks Electrical has reported record full-year revenue as it now turns its attention to focusing on its offering in the premium segment.
Revenue grew 2.6% to £117.2m in the 12 months to March 31, 2025, in what the group said was despite a “highly competitive backdrop”.
Adjusted EBITDA fell from £5m to £4.2m year-on-year as growth in electronic sales impacted margin mix.
Its market share in major domestic appliances held firm at 2.7%, while its market share in consumer electronics ticked up from 0.5% to 0.7%.
The decision to focus on premium and move away from entry-priced products has led to lower revenue in the first quarter of the new financial year, but the company anticipates improving revenue growth and controlling costs to manage the £750,000 of added costs from the Budget.
Marks Electrical outlined four key elements in its strategy for growth: enhance customer proposition with services; grow brand awareness; enhance technology for operational capacity; and improve financial performance with a pivot to premium.
It has also appointed Dipesh Mistry as its interim chief financial officer while it looks for a permanent replacement for Josh Egan.
Chief executive Mark Smithson said: “During a challenging year for the group and in a market where consumers continue to remain price conscious, I am proud of the strategic and operational progress we have made.
“As outlined previously, we expected our pivot back to a premium-focused operating model to have an impact on the speed of our revenue growth. We initiated this change in late FY25, and the impact of this shift away from entry-priced products has led to lower sales in Q1 against a strong comparative in the prior year, which also impacted operating leverage.
“However, as we focus on the right product hierarchy and sales channels, we expect this to have longer-term benefits on unit economics, and as comparables ease in later quarters, we expect a return to revenue growth during FY26.
“Our relentless approach to providing exceptional customer service continues to be our core focus and we remain committed to becoming the UK’s leading premium electrical retailer.”
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