Marks Electrical swings to loss despite record revenue
Marks Electrical has slipped to a loss despite reporting record full year revenue.
In the year 31 March, the online electrical retailer posted a 2.6% increase in revenue to £117.2 million. However, adjusted EBITDA declined to £4.2 million from £5 million in the previous year.
Meanwhile, the company posted a pre-tax loss of £1.7 million compared to a profit of £616,000 a year earlier.
During the period, Marks Electrical implemented a new business-wide Enterprise Resource Planning system and exited the Euronics buying group. It also established new trading relationships with over 50 brand partners.
Mark Smithson, chief executive of Marks Electrical, 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.
“Our ERP implementation brought minor disruption to the business during the cutover period, however, the transition has been successful and our teams have quickly embraced this transformational change.
“This has been a significant, long-term strategic investment for the business, which will allow automation of process improvements to make our operations more efficient at scale, and enable us to deliver growth, profitability and value for all our stakeholders.”
Giving an update on more recent trading, the company said its decision to move away from entry-priced products led to lower revenue during the first quarter of its new financial year. It added: “As we look ahead to the remainder of FY26, we anticipate improving revenue growth and higher gross margin than prior year, enabling us to reiterate our full year guidance.”
Following an earlier announcement that its chief financial officer Josh Egan is leaving the business to join Roadchef, Marks Electrical has confirmed that Dipesh Mistry will succeed him on an interim basis. Mistry has worked with the company for the last two years and has previously been a senior manager at Deloitte.
