Marks Electrical Group (MRK) H2 2025 earnings summary

Executive summary

• Revenue grew 2.6% year-over-year to £117.2m, with adjusted EBITDA of £4.2m and net cash of £8.8m.

• Strategic shift away from Euronics UK buying group, building direct brand relationships to improve gross margin.

• Investments in technology and operational capacity, including Microsoft Dynamics 365 and enhanced distribution facilities.

• Maintained market share gains in a flat market, with 2.7% share in Major Domestic Appliances and 0.8% in Consumer Electronics.

• Focus on premium segment and profitable growth, supported by strong brand awareness and customer service.

Financial highlights

• Adjusted EBITDA margin declined to 3.6% from 4.4% year-over-year.

• Gross product margin decreased by 50bps to 24.6% due to higher Consumer Electronics sales.

• Dividend maintained at 0.96p per share, payout ratio increased to 62%.

• Operating cash conversion improved to 133% from 71% year-over-year.

• ROCE at 16%, down from 21% in the prior year.

Outlook and guidance

• Anticipates improved revenue growth and higher gross margin in FY26, reiterating full-year guidance.

• Strategic focus on premium segment expected to enhance profitability.

• Operational and strategic improvements position the group for long-term success.