Marks Electrical reported a profit boost and surge in sales in its trading update for its fourth quarter.
The electricals retailer pulled in adjusted EBITDA of around £5m for the year ended 31 March, as it increased its market share in the major domestic appliances and consumer electronics market.
Additionally, the business achieved record full-year sales of £114.3m, up from £97.8m in FY23, which more than doubled the revenue seen in its year prior to listing.
Marks Electrical said further improvements in working capital and inventory turn during the year helped it achieve a closing net cash position of £7.8m, which took into account strategic investments in vehicles, equipment, facilities and systems.
Marks Electrical CEO, Mark Smithson, said: “As explained in our January trading update, in the current trading environment consumers remain highly price-conscious, which given our premium focus, continues to have an adverse impact on our average order value, resulting in customer order volumes growing faster than revenue.
“This impact will limit our ability for margin expansion in the short-term, when taking into account the relatively fixed cost of delivery.”
“Despite this, we are very pleased with the growth in our order volumes and new customer acquisitions during the period and the strong growth we have seen in early April, giving us confidence that our fundamental strategy of continued profitable market share gains and excellent customer service will help us in delivering further growth.”
