Marks Electrical Group PLC shares fell 20% following a profit warning. The company reported ongoing sales declines in the first quarter and continuing challenges across the first half of the year, citing rising operating and distribution costs.
The warning led management to revise EBITDA expectations down to £1.7 million for the year, compared with analyst consensus of £4.5 million.
Recent performance at other UK electrical retailers highlights a contrasting picture. AO World PLC posted double-digit sales growth in the first half. At the same time, Currys PLC reported a 3% like-for-like sales growth in the UK and Ireland, driven by strong demand in major domestic appliances and computing, offset by declines in TVs and air fryers.
Analysts note that Marks Electrical has struggled to achieve the scale and operating efficiencies of its larger competitors, which limits its ability to absorb cost pressures.
