Online retailer Marks Electrical reports record sales
Online electrical retailer Marks Electrical is on course for a record year after seeing revenue rise to over £80m.
In a recent trading update, the Leicester-based company revealed that revenue for the 12 months to March 31, 2022 (FY22) rose 44% to £80.5m from £56m. sterling in 2021.
The AIM-listed company says its performance was helped by strong demand for household appliances, such as fridge-freezers, washing machines and televisions.
CEO Mark Smithson – who has previously revealed his ambitions to achieve annual sales of £500million over the next five years – said: “The fourth quarter was another great trading period for us, with growth revenue of 19% compared to a particularly strong comparison of 127% the previous year.
“Our disciplined focus on margin management, capital allocation and cash generation has also led to a strong return profile through our asset-light operating model.
“During the period, we continued to improve our operational capability and added additional resources across our customer services and driver installation teams, helping us maintain our customer service score of 4.8 on Trustpilot, market leader.
“Our free next day delivery USP with our own fleet of vehicles, combined with our single location with no capacity constraints, helps us achieve operational excellence and gain market share in a highly competitive market.”
He added, “We continued to focus on improving brand awareness with our offline marketing campaigns, coupled with our search engine optimization improvements, driving higher levels of organic traffic and direct.
“With face-to-face meetings back on the agenda, we met with several vendors during the period and discussed our expansion plans and ways to support each other in growth goals. This, coupled with the expansion of inventory in the second half as supply constraints begin to ease, makes Marks Electrical a more important retailer for our brand partners.
“I would like to take this opportunity to thank our colleagues and brand partners for helping us deliver a record year, despite a challenging market environment. We are well positioned to seize future opportunities with our compelling customer proposition and our low-cost operating model and a continued focus on profitable market share growth, with more and more people across the UK coming into contact with the Marks brand for the first time.
“As we look forward to FY23, our business momentum continued into early April, setting us up well for our financial goals for FY23.”