Marks Electrical Group, the online electrical retailer based in Leicester, has slipped to a loss, despite record revenue.
In full year audited results for the 12 months ended 31 March 2025, the business posted a pre-tax loss of £1.7m, compared to a £616,000 pre-tax profit last year.
It came as revenue reached £117.2m, up from £114.3m in the year prior.
Mark Smithson, CEO, 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.
“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.
“Over the past couple of years we have invested in our operations to position Marks Electrical for long-term success. At the same time, we have continued to deliver profitable market share growth, strong cash flow generation and consistent returns in the form of dividends to shareholders thanks to our ability to allocate capital with discipline.
“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.”
