LONDON, UK: Marks Electrical Limited, a fast growing online electrical retailer, has expressed intention to proceed with an initial public offering (IPO) and to seek admission to trading on AIM, a market of the London Stock Exchange, of the issued and to be issued ordinary shares in the capital of a newly established holding company of the group.
Marks Electrical sells, delivers, installs and recycles a wide range of household electrical products. The Marks Electrical Group was founded in Leicester in 1987 by its Chief Executive Officer, Mark Smithson, and has expanded into a nationwide online retailer, with a strong track record of growth and scaling the business as a result of the consumer shift to online shopping.
Primarily through its website – markselectrical.co.uk – the company offers over 3,000 products from over fifty brands across its main product categories, which include Cooking, Refrigeration, Washers & Dryers, Dishwashers and Audio-Visual.
These products are sourced from UK distributors of the brands, with whom the Group maintains strong and direct relationships. Delivery to customers is operated by its own skilled team of delivery drivers in its owned and branded vehicles, who are also able to offer installation and recycling services.
In the year to 31 March 2021 (“FY2021”) revenue grew to £56 million, up 78% against the previous financial year, while EBITDA increased to £7.45 million, at a 13.3% EBITDA margin. The Group has made a strong start to its current financial year to 31 March 2022 (“FY2022”), with revenue growth of 78% in H1 FY2022, versus 47% growth in H1 FY2021.
The Directors have developed a strategic growth plan for the Group, focused on improving sales and gaining market share. In the short term the Group intends to achieve this through its targeted digital marketing strategy, expansion of the Group’s vehicle fleet and warehouse capacity and increasing the range of finance solutions offered to customers.
In the medium term, the Group is looking to increase its brand awareness through specific brand-building marketing campaigns and is also exploring additional warehouse expansion opportunities for its ambitious growth plans.
Mark Smithson, Founder & Chief Executive Officer of Marks Electrical, commented: “I am delighted to announce our intention to list on AIM. This is an important step in our growth journey as we continue to scale the business and deliver premium electrical items to the growing number of consumers buying electricals online. We see significant opportunities to continue to grow our market share, improve our brand awareness, and further build on our strong trading momentum.
I am also looking forward to Marnie, David and Alyson joining the Board. Their experience is already proving invaluable as we move forwards to our listing.”
Marnie Millard, Independent Non-executive Chair elect of Marks Electrical, commented: “Mark and his team have built a high-quality, innovative business over the past three decades and I am delighted to be joining the Board as chair at this exciting time. As one of the first electrical retailers to move to selling goods online, Marks Electrical has deep market knowledge and understanding of its customers that has been key to its sustained growth. With a scalable platform, underpinned by proprietary technology, a simple distribution network and a vertically integrated delivery model, the business has many growth opportunities ahead and I look forward to working with Mark and the Board.”
Admission is expected to take place in late October 2021. Panmure Gordon (UK) Limited is acting as Nominated Adviser and sole broker in relation to the proposed placing and Admission.
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