Marks Electrical FY26 underlying earnings fall as marketplace pullback hits sales

(Sharecast News) - Online electrical retailer Marks Electrical reported a drop in full year revenue and underlying earnings on Friday, reflecting a deliberate pullback from marketplace channels and a tougher first half, though the group said it ended the year with improving momentum.

Marks Electrical said fullyear underlying revenue fell 7.5% to �108.4m, while adjusted EBITDA dropped to �2.5m from �4.2m, in line with guidance. Underlying gross margins held broadly steady at 24%.

Diluted adjusted earnings per share slipped to 0.67p, while statutory losses per share narrowed to 0.40p from 1.38p in the prior year. Net cash stood at �4.4m, down from �8.8m a year earlier. No final dividend was declared, with the group continuing to prioritise profit recovery.

Marks Electrical said its performance had strengthened in the second half, helped by a solid peak trading period and costefficiency measures, and stated current trading was in line with expectations, with stronger MDA activity in May and a lift in consumer electronics demand ahead of the FIFA World Cup.

Post yearend, Marks Electrical reached a settlement with the Competition and Markets Authority over a previously disclosed investigation, with a reduced �700,000 penalty and around �600,000 in consumer redress, all to be funded from existing cash and treated as exceptional.

The AIM-listed firm stated it had entered FY27 with positive momentum and a solid cash position, but said it remains cautious on sales growth and gross margin given weak consumer confidence and broader economic pressures.

As of 0900 BST, Marks Electrical shares were down 4.08% at 47p.

Reporting by Iain Gilbert at Sharecast.com

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