25th Jun 2025 11:54
(Alliance News) - Marks Electrical Group PLC on Wednesday said its performance in the 2025 financial year was in line with expectations, as revenue increased but it swung to a loss from profit.
The Leicester, England-based electrical products retailer raised revenue by 2.6% to GBP117.2 million in the 12 months to the end of March from GBP114.3 million the year before.
The company swung to a pretax loss of GBP1.7 million in financial 2025 from a profit of GBP616,000 the prior year.
Cost of sales increased 3.9% to GBP88.6 million from GBP85.2 million, while administrative expenses were up 8.1% to GBP18.9 million from GBP17.5 million.
Marks said rapid growth in consumer electronics sales negatively impacted margin mix, offset by "carefully controlled marketing" and overhead costs.
The company proposed a final dividend of 0.66 pence per share, giving a total dividend of 0.96p, unchanged on-year.
"The dividend payout reflects the group's strong, debt-free balance sheet and confidence in its future growth prospects," Marks added.
Marks said it expects improving revenue growth in financial 2026 with a higher gross margin than the prior year.
It said the decision to refocus on the premium segment to improve unit economics and profitability led to lower revenue during the first quarter of financial 2026, as expected.
Further, Marks Electrical said Dipesh Mistry has been appointed as interim chief financial officer after the departure of Josh Egan.
Mistry has been with Marks Electrical for the last two years, most recently as head of operations.
Egan will complete a "comprehensive handover" during the coming months, with the process to appoint a full time successor underway.
"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," said Chief Executive Officer Mark Smithson.
"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."
Shares in Marks Electrical were down 4.4% at 60.22 pence in London on Wednesday morning.
By Michael Hennessey, Alliance News reporter
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