Marks Electrical Group (MRK) has hailed a record trading period for its third quarter to 31 December 2021, reporting revenue growth of 27.4% from £17.5m in 3Q21 to £22.3m in 3Q22.
The London-listed online electrical retailer said the company’s record period includes a strong performance during the ‘seasonally important’ Black Friday and Christmas trading events.
In the year-to-date, the Company reported revenue growth of 55.0%, up from £38.6m to £59.8m, which it says is keeping the business on track to deliver its 2022 revenue target.
The Group achieved operational leverage during 3Q, therefore driving margin expansion. As a result, the firm says it is on track to achieve its full-year Adjusted EBITDA margin target of 9%.
In addition, the Company said it successfully maintained inventory levels during its peak trading period and that it has sustained a continued focus on working capital management.
Operationally, the Company noted that its growing in-house fleet of delivery vehicles achieved record delivery volumes during the quarter. Looking ahead, the Company added that there is scope for further capacity utilisation across this division as it continues to grow as a business.
Whilst its market share growth across its major domestic appliances segment continued during the period, the Group also recorded a strong performance across its television segment with year-to-date revenue from this category up 103% year-on-year, it reported.
In addition, the Company said its Trustpilot rating increased from 4.7 to 4.8 over the period.
Commenting on this morning’s trading statement, CEO of Marks Electrical Group, Mark Smithson, outlined, “I am delighted by our performance in the third quarter of this year, with year on year growth of 27.4%, and continued trading momentum against particularly strong comparatives. This high growth rate allowed us to continue to gain market share.”
In order to improve brand awareness, we continued our investment in TV campaigns, leading to increased website traffic and promoting the Marks Electrical brand. This, combined with our revised approach to digital marketing, helped attract new customers to our site.”
Smithson said the Group has continued to work closely with suppliers to maintain inventory levels during 3Q, and that it has successfully coped with a continued surge in demand to achieve record delivery numbers and to ensure it has maximised the value on each vehicle.
He stated: “In a market with supply issues, this demonstrates the strength of our relationships with our suppliers and the agility of our business model to cope with peak demand.”
“Our team has delivered a record quarter, handling increased throughput in our warehouse and via our expertly trained team of delivery drivers. Our momentum has continued into January and we look forward to maintaining our performance management discipline on revenue, profit and cash in the final months of the year,” added Smithson.
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