Marks Electrical Group (MRK) H1 2026 earnings summary

Executive summary

• Revenue for H1-26 was £53.0m, down 9.9% year-over-year, reflecting a challenging and declining market environment.

• Gross margin remained stable at 24.3% (H1-25: 24.6%), with profitability impacted by cost headwinds and strategic inventory repositioning.

• Adjusted EBITDA fell to £0.5m (H1-25: £2.0m), and adjusted EPS was a loss of (0.31)p (H1-25: 0.72p).

• Operational focus included the first full year of Microsoft Dynamics 365 ERP, with initial costs and disruption but anticipated future efficiencies.

• October saw a return to revenue and profitability growth, supporting confidence in revised FY26 expectations.

Financial highlights

• Revenue declined 9.9% YoY to £53.0m, while the market contracted by 2.0%.

• Gross margin was 24.3%, down 30bps YoY.

• Adjusted EBITDA margin dropped to 0.9% from 3.4% YoY.

• Statutory EPS was a loss of (0.44)p, improved from (0.79)p YoY; adjusted EPS was a loss of (0.31)p versus 0.72p YoY.

• Net cash at period end was £1.5m, down from £6.7m YoY, mainly due to working capital outflows for inventory realignment.

Outlook and guidance

• October marked a return to revenue and profitability growth, in line with revised FY26 forecasts.

• Management remains focused on sustainable, profitable growth, leveraging efficiencies from D365 and disciplined cost management.

• The business is well positioned to capture market share as conditions recover, with a strong platform in a £7bn market.