Marks Electrical Group, the online electrical retailer, has reported a strong trading period for the first four months of its new financial year – against a challenging market back-drop.
According to an update for the four months ended 31 July 2022, revenue grew 13.7% to £27.7m, compared to £24.3m in the same period last year.
The Leicester-based business, which floated on AIM last year, said its strong performance was driven across categories but particularly in televisions, vacuum cleaners, washers & dryers, and air conditioning.
Mark Smithson, Chief Executive Officer, said: “We’ve started the year well despite a very tough market back-drop with the group’s sales for the first four months up 13.7% compared with the online MDA and CE markets being down over 20% in the first months of our FY23.
“We’ve seen strong competitive activity both in pricing and marketing, with heavy discounting of headline prices and higher cost per click marketing expenses. Despite this, we have maintained our tight control on inventory, cost management and disciplined capital allocation, ensuring we are in a healthy cash position and remaining focused on profitable market share gains.
“Our differentiated operating model, leading customer service and free next day delivery provides a unique offering that sets us apart from the competition. I’m proud of the performance our team has delivered in a very challenging market. Whilst the remainder of the year is difficult to predict, our focus on maintaining a market leading customer proposition and healthy cash flow provides us with the best platform to generate continued profitable market share growth.”
