Marks Electrical has recorded an uplift in revenue and said it is “actively pivoting” back to its “historically successful premium focus” to drive better margin performance.
In a pre-close trading update for the year ending March 31, 2025, the electricals retailer recorded a 2.6% revenue increase to £117.2m, up from £114.3m last year.
The retailer achieved a full-year adjusted EBITDA of around £4.2m thanks to controlled marketing costs and improved distribution efficiency.
Major domestic appliances volume grew 5% and consumer electronics volume soared 50%.
It said it is moving the business to a premium focus to deliver an uplift in margin performance and the strategy is on track with margins improving in the second half.
The company will continue to drive sustainable margin recovery, which could be “at the expense of revenue growth”.
Chief executive Mark Smithson said: “FY25 was a period of significant strategic change and progress and whilst the margin and growth rates were not at the higher levels seen in recent years, nor where I would like the business to be, I continue to be proud of the performance the team has delivered, whilst tackling the significant operational distractions brought about by the changes we decided to make.
“These changes will position the business for long-term success and ensure that Marks Electrical is well placed to benefit when broader market sentiment picks up, giving us even greater vertical integration, improved visibility and enhanced automation, further enabling us to deliver growth, returns and value for all our stakeholders.
“I am encouraged by the margin improvements we have seen in the second half of FY25 and despite a continued tough consumer retail market with declining average order values, we have remained profitable, highly cash-generative and delivered revenue growth, all whilst maintaining our excellent standards of customer service.
“This improvement in the second half gives us confidence that the fundamental strategy we have maintained over the last four years, of continued profitable market share gains and excellent customer service, will help us in delivering further profitable growth in the years ahead.”
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