Marks Electrical Group, the London-listed online electrical retailer, has reported that margins in the first half of the year were negatively affected. This was due to the introduction of the company’s own installation service, as well as inflationary pressures on distribution costs.
However, the company anticipates that this pressure will ease in the second half of the year. They expect to benefit from improved operating leverage during the peak trading period.
Strong Performance Drives Revenue Increase
Despite the margin challenges, Marks Electrical Group saw a significant increase in revenue. Their revenue rose by 25% to reach £53.9 million ($66.4 million) during the period, highlighting the company’s strong performance.
Focus on Sustainable Growth
Chief Executive Mark Smithson expressed confidence in the company’s outlook. He stated, “We’ve exited September with order growth of over 20%, made a strong start to October, and are laser-focused on maintaining our performance management discipline on revenue, profit, and cash.” Smithson emphasized the importance of sustainable growth and achieving their full-year targets.
Stock Price Impact
At 0820 GMT, the company’s shares were down by 7 pence or 6.4% at 102 pence.