Marks Electrical has raised its profit outlook for the year to 31st March 2027. It now expects adjusted EBITDA of no less than £3.75m, which is ahead of market expectations.
Revenue is a different story. The company expects full-year sales to come in broadly in line with what the market expected.
Instead, it credited operational efficiencies, tighter control of fixed costs and better gross margins on the products it sells.
That combination produced stronger profitability than planned over the first half, the six months to 30th September.
Costs are still rising. Chief executive Mark Smithson named fuel as the biggest pressure. That’s a significant expense for a retailer that delivers in its own branded vehicles, with its own drivers handling installation and recycling.
Smithson founded the business in Leicester in 1987. It now sells more than 4,500 products from over 50 brands, mainly large kitchen appliances and AV.
The update comes just before peak trading, covering Black Friday and Christmas. Smithson said the business is in good shape to get through it.
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Marks Electrical has been leaning into margin for a while. In March, it told investors it was prioritising profitable growth over volume, and expected FY26 sales of around £108.5m, down from £117.2m the year before. For smaller sellers going into the same quarter, it’s a useful example of a retailer growing profit by protecting margin, with order volumes flat.
The trading statement also named a new finance chief. Philip Luke De Villanueva joins as chief financial officer and a board director on 1st December.
He is ACCA-qualified, with more than 15 years in finance, and currently leads finance for the Enterprise Markets business unit at Gamma Communications. Before that, he spent almost ten years at Balfour Beatty in divisional and group finance roles.
Outgoing CFO Tom Pallatt, whose departure was announced on 3rd July, stepped down from the board on 30th September. Audit chair Helen Flear will oversee the finance function until De Villanueva starts.
Interim results for the six months to 30th September are expected in November.
