The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Marks Electrical’s sales growth remained strong at 17.8% in Q3, and the company appears on track to match our full year expectations of an 18.7% increase following a strong 21.5% advance in the previous year. But as a company with a core strength in premium products, gross margins have come under pressure - customers’ buying patterns have been negatively impacted by the challenging trading environment. As a result, we cut our FY2024 EBITDA forecast from £8.0m to £5.0m (and reduce FY2025 expectations from £10.0m to £7.0m). Our new fair value is 100p / share.
Link to report: https://www.equitydevelopment.co.uk/research/strong-sales-growth-momentum-remains-in-place
Marks Electrical Group, the fast-growing online electrical retailer, conducted an investor webinar following publication of their Interim Results.
Mark Smithson (founder & Chief Executive Officer) and Josh Egan (Chief Financial Officer) ran investors through key details of their HY24 numbers which included strong revenue growth and the impact of distribution & installations costs on margin.
Management discussed their expanded geographic presence and the roll-out of their next-day installation offering, as well as their strong balance sheet and cash generation. There was also a wide-ranging Q&A session following the presentation.
The full video has been divided into chapters, as below:
0:00:03 Key highlights from HY24
0:03:00 Financial overview
0:10:51 Strategic update
0:24:14 Summary & Outlook
0:24:50 Questions & Answers
Link to full video: https://www.equitydevelopment.co.uk/research/marks-electrial-investor-presentation-interimresults-nov2023
Results confirm 24.8% sales growth to £53.9m in H1, and despite lower EBITDA margins, Marks Electrical converted 145% of operating profit into cash (vs. 118% for the whole of FY2023), enabling a 0.30p unchanged interim dividend.
Margins, as expected, were reduced by the strategic decision to add integrated gas, electrical and television installation services to its next day delivery service, and increased wages for the company’s drivers. As a result, EBITDA margins were two percentage points lower than a year earlier at 4.3%. Importantly, gross product margins were almost unchanged – i.e. products were not discounted.
Market share improvements in both Major Domestic Appliances (MDA) and Consumer Electronics (CE) demonstrates the success of the company’s strategy. In H1 MDA share rose to 2.9% from 2.4%, while CE share increased from 0.3% to 0.5%. For online only, the MDA share was 5.4% and CE 0.9%. Given the substantial headroom the company enjoys in terms of awareness and reach, that over 1 in 20 UK online MDA orders are already put through Marks Electrical appears impressive.
Operating efficiency in terms of overhead costs improved in the six months. Inventory days reduced to 64 in FY2024H1 from 82 days a year earlier, and net cash rose by £0.9m to £10.9m in the past 6 months. The company generated a still impressive 37% return on capital employed in FY2024H1. With sustained robust sales growth, driven by consistent market share increases from an already meaningful level online and strong cash conversion, we retain our 150p fair value.
Link to report: https://www.equitydevelopment.co.uk/research/market-share-gains-and-efficiency-drive-cash-flow
Marks Electrical Group plc, the fast-growing online electrical retailer, will be conducting an investor webinar following publication of their Interim Results.
The online presentation will be hosted by Mark Smithson (founder & Chief Executive Officer) and Josh Egan (Chief Financial Officer).
This event will take place at 2.00pm on Monday 20th November.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
You can sign up to register here:
https://www.equitydevelopment.co.uk/news-and-events/markselectrical-investor-presentation-20nov2023
Marks Electrical Group plc issued a trading update for the HY ended 30th September this morning. H1 Group revenue was up by 24.8% to £53.9m. The Strategic decision to introduce the Group’s own installation service, combined with inflationary pressures in distribution costs impacted H1 margins, but this pressure is expected to ease over H2. The balance sheet remains strong with net cash of £10.9m. Valuation is average with forward PE ratio up to 17.7x, the share price also remains in a 12- month uptrend and has some positive momentum. The fragile macro environment is the main cloud, but there is a lot to like here, not least longer run growth potential. BUY....
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/MRK/814
New note & audio summary here: https://www.equitydevelopment.co.uk/research/service-uplift-sparks-25-sales-growth
Marks Electrical Group’s sales revenue advanced by 24.8% in the first half of its 2024 financial year, according to a trading update released today, as the company made further market share gains in its core categories. Notably strong advances by category included +71% for televisions, +74% for washer-dryers and +36% for American fridge-freezers. These gains were achieved against relatively flat domestic markets for both Major Domestic Appliances (MDAs) and Consumer Electronics (CEs). An improved service offering, which now includes integrated installation services, made a notable impact: not only in a strong sales growth rate, but also a best-in-class 4.8 Trustpilot score.
Due to first half sales growth strength, we have revised upwards our sales forecast for FY2024 from £114.5m to £116.0m. However, we reduce our EBITDA forecast from £8.9m to £8.0m as well as making downward adjustments to FY2025. Margins are expected to contract as a result of order growth being faster than revenue, higher driver wages and the integrated installation service addition. Importantly, the company is not willing to make reductions in marketing spend to offset these items. Rather, it continues to invest in brand recognition with a view to sustainable growth.
Given MRK’s strong cash position and clearly articulated strategy for sustainable business expansion, we maintain our 150p fair value for the shares.
See full note here: https://www.equitydevelopment.co.uk/research/sales-growth-exceeds-30-so-far-in-fy2024
Summary: Marks Electrical Group (MRK) released a trading update ahead of its AGM. The company enjoyed strong trading in the first four months of its FY2024 financial year as enhanced delivery options, sustained high service quality levels and more widespread brand awareness helped the company to over 30% sales revenue growth in the period, compared with nearly 14% a year earlier. With further benefits of strong cash conversion – consistent with a proposed 0.66p final FY2023 dividend – we reiterate our fair value of 150p for the shares.
Hello All, Just dipped my toe in with a small £4,030 purchase. Looking quite promising.
Rgds
Mike
T_B
Marks Electrical Group plc, the fast-growing online electrical retailer, conducted an investor webinar following publication of their FY results.
Mark Smithson (founder & Chief Executive Officer), and Josh Egan (Chief Financial Officer) took investors through highlights of the FY23 period, which included 21.5% revenue growth, ongoing market share gains and an improved net cash position. They discussed the roll out of their built-in installation offering, the significant brand awareness improvement in London over the past few months, and highlighted the strong start made already in FY24. Management answered a wide-ranging series of questions from investors.
If you missed the live event, you can watch the full presentation video here, divided into chapters as below:
0:00:21 Key FY23 highlights
0:05:11 Financial overview
0:14:58 Strategic update
0:36:36 Summary & Outlook
0:38:12 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/marks-electrial-investor-presentation-fy-results-june-2023
Link to new research report: https://www.equitydevelopment.co.uk/research/built-in-installations-enhance-growth-outlook
Marks Electrical’s preliminary FY2023 results confirmed the 21.5% sales growth and £7.5m EBITDA announced in the April trading update. The company generated £7.1m of free cash flow in FY2023 (vs. £5.7m a year earlier), to end the year with a £10.0m positive net cash balance. Moreover, sales gains were 30% in the first two months of the current financial year.
An upgraded built-in installations programme represents an important addition to MRK’s service offering. This activity is now managed in-house and enables the company to install appliances into fitted areas within dwellings – notably kitchens – using a specially trained team of installers including gas safe registered engineers. Built-in installations suit MRK’s focus on premium branded products.
MRK’s raised awareness levels were notable in London, where they increased from 12% to 22% between October 2022 and May 2023. Indeed, London now has the highest awareness rate for MRK in the UK, surpassing even the company’s East Midlands home region - a reinforced presence in the nation’s capital should be seen as a clear route to growth.
The key drivers of MRK’s investment case remain in place (see our initiation report: Lighting the touch paper). However, the consistency of overall approach should not mask significant ongoing changes and continuing improvements within the group as it enlarges the business overall. MRK’s delivery against service level, brand awareness, growth and cash generation objectives are not currently reflected in MRK’s share price, in our view. As a result we maintain our 150p fair value which implies FY2024 EV/sales of 1.3x and 16.2x FY2024 EV/EBITDA based on our current forecasts.
Marks Electrical Group plc, the fast-growing online electrical retailer, will be conducting an investor webinar following publication of their FY results.
The online presentation will be hosted by Mark Smithson (founder & Chief Executive Officer), and Josh Egan (Chief Financial Officer).
This event will take place on Thursday 15th June at 2.30pm.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Link to register: https://www.equitydevelopment.co.uk/news-and-events/marks-electrical-fyinvestorpresentation-15june2023
Detailed research report here (free & accessible): https://www.equitydevelopment.co.uk/research/sales-advance-by-21.5-to-97.8m-in-fy2023
A better than-expected 21.5% increase in sales revenue to £97.8m, higher EBITDA margins and strong cash conversion were the key features of today’s Marks Electrical Group (MRK) FY2023 trading update. In addition, a positive start to April augurs well for FY2024, a year in which we expect to see further market share gains and expansion of the product and service offering.
The central investment case for the shares remains firmly in place, in our view. The company is well invested to meet demand growth in its business operationally as well as enjoying significant scope to generate this demand growth through increased brand awareness. Furthermore, market share is comparatively small at around 3% despite three consecutive years of exponential progress in sales.
With a trailing EV/sales ratio of only 0.8x we continue to argue that the shares appear undervalued and reiterate our fair value of 150p for the shares.
The RNS reports on the financial performance of the company over a nine-month period ending December 31st, and a three-month period ending December 31st. According to the RNS, the company achieved revenue growth of 33.4% in the third quarter of the current fiscal year, and 22.0% year-to-date. The RNS also highlights that the company achieved operating leverage during the period, and that the performance was driven by strong sales across various product categories.
There do not appear to be any obvious financial problems in the RNS. However, there are a few potential issues with the statements in the article that should be noted.
The statement "Year to date (YTD) revenue growth of 22.0% to £72.9m (2022 YTD: £59.8m)" is not entirely accurate, as the comparison year mentioned is 2022, however from the date "9 months ended 31 December" it can only be YTD of the current year, thus comparison would be of the same period of the last year.
The statement that the company achieved operating leverage during the period is not entirely clear, as it is not specified how much margin expansion was achieved or how it was calculated.
The statement that the company is "on track to achieve its full year targets" is not backed up with any specific information or data, so it is difficult to verify the accuracy of this claim.
The statement that the company has "Maintained inventory levels during the peak trading period" seems to be conflicting with the statement "We have been able to capitalise on our strong net cash position to enhance our inventory range and product availability, further improving our offering for customers"
The statement that the company's performance was particularly strong in certain regions of the UK, such as London and the East Midlands, would be more convincing if it were backed up with specific data or information.
Research report available here: https://www.equitydevelopment.co.uk/research/revenue-growth-accelerates-to-33.4-in-q3
Rapid 33.4% revenue growth, margin expansion relative to the first half, and a record level of delivery volumes were the main features of Marks Electrical’s FY2023 Q3 trading update. Furthermore, the strength of Q3 business lends significant credibility to the company’s view that it is on track to achieve its full year targets, and bolsters confidence in our fair value for Marks Electrical Group of 150p per share based on relative valuation and DCF.
Marks Electrical’s strong 33.4% growth in FY2023 Q3 implies a 22.0% 9-month growth to 31 December 2022 and acceleration from 15.1% growth in the first six months. The company advanced sales in the important Q3 trading period, which in FY2022 was equivalent to 28% of annual sales revenue. The strength of Q3 sales growth should also have increased operating leverage and thus driven margin expansion. We note that with 82% of our FY2023 target already achieved, the company is in a strong position to meet current expectations for sales revenue and profitability.
Cash conversion remains an important part of the Marks Electrical investment case, which should have benefited in Q3 from maintenance of inventory levels during the peak trading period and an implied improvement in the inventory:sales ratio. A strong cash position augurs positively for dividend paying capability. A 0.3p interim dividend was paid to shareholders on 23 December 2022.
Marks Electrical’s in-house delivery vehicle fleet achieved record quarterly sales volumes in Q3. Service levels and customer satisfaction should benefit going forward from the company’s in-house installation service. Over 3,000 installations have been completed since the offering’s launch last August.
have a knock on impact on Marks?
I'm assuming a large % of the stock is manufactured in China and shipped over.
Link to full video: https://www.equitydevelopment.co.uk/research/marks-electrical-investor-presentation-nov22
We hosted an investor presentation last week from Marks Electrical Group plc, the fast-growing online electrical retailer, following publication of their Interim Results. Mark Smithson (founder & Chief Executive Officer), and Josh Egan (Chief Financial Officer) ran investors through their strong top-line performance, ongoing market share gains, a detailed overview of financials and a strategic update including the growing installation offering. The team also discussed the outlook and answered investor questions.
If you missed the 'live' event, you can watch a replay here which has been divided into chapters (see below):
0:00:16 Key highlights
0:03:48 Financial overview
0:10:00 Strategic update: customer proposition
0:24:48 Strategic update: brand awareness
0:29:52 Strategic update: operational capacity
0:36:57 Strategic update: financial performance
0:38:24 Summary & Outlook
0:41:24 Questions & Answers
mrk's ceo.....on sky news atm
Full link here: https://www.equitydevelopment.co.uk/research/connecting-the-growth-drivers
Marks Electrical’s 15.1% first half sales growth was announced in last month's trading update, driven by market share gains. Today’s interim results release evaluates those share gains in more detail, as well as including three important indicators of ongoing and sustainable progress within the business – margin resilience, a strong return profile and the company’s net cash position. The company is well placed to make further share gains in H2. Despite a competitive market, the company continued to invest in its brand and customer service levels. Moreover, MRK expects to meet current market expectations of profit growth for the full year.
The company’s intrinsic value incorporates its industry-leading 4.8 Trustpilot score and significant headroom in terms of both market share and brand awareness levels. A positive cash position was reflected in the announcement of a 0.30p interim dividend. We maintain our fair value of 150p per share.
It has been stated the half year results due tomorrow will be good, obviously for many retailers the next 6 months will be a challenge but they have indicated their market share has increased, I’ll hold, finger’s crossed for a sound RNS
Sign up here: https://www.equitydevelopment.co.uk/news-and-events/marks-electrical-investorpresentation-10nov22
Marks Electrical Group plc, the fast-growing online electrical retailer, will be conducting an investor webinar following publication of their Interim Results.
The online presentation will be hosted by Mark Smithson (founder & Chief Executive Officer), and Josh Egan (Chief Financial Officer).
This event will take place at 12.30pm on Thursday 10th November.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
a really good update today, building on the AGM statement. 15% YoY revenue growth should not be sniffed at and cash position looks very healthy.
Need to ensure these increases filter down to the bottom line, as profit is key, however, overall Marks is a well run little company that is progressing nicely despite difficult market conditions.
Recent SP decline looks overdone
Link to full new research report here: https://www.equitydevelopment.co.uk/research/market-share-gains-drive-strong-sales-growth-in-h1
Summary: Continued and sizeable market share gains drove a 15.1% increase in first half sales for Marks Electrical Group (MRK), particularly impressive in a market that was contracting overall. The company made gains in both Major Domestic Appliances (MDAs) and Consumer Electronics (CE), despite both categories being weak for online business in the period. Moreover, the MRK cash position remains strong, outperforming expectations. These inherent business qualities are not captured in the current share price, in our view, and we reiterate a 150p fair value. MRK is not only comfortably delivering double-digit sales growth but also enjoys significant geographic and category headroom for further expansion. In addition, it operates on a cash positive basis which implies scope for incremental dividend growth as earnings advance. We base our fair value on 1.7x FY2023 sales revenue and 21.5x FY2023 EV/EBITDA.
Marks Electrical Group - Market share gains drive revenue growth (new note published today following Trading Update ahead of this morning's AGM)
Significant market share gains in a particularly tough market environment were responsible for Marks Electrical recording a strong 13.7% sales revenue growth rate in the first four months of its FY2023 financial year. With a sustained and impressive 4.8 Trustpilot score, and flat inventory levels, the company appears well positioned to make further sales gains and convert revenue and profits into increased free cash flow.
The current market share position implies massive headroom for growth, driven by a superior premium branded product range and service offering. Financially, a focus on costs and working capital should ensure that the company has adequate resources to fund future sales revenue expansion. Valuation does not reflect the clarity of Marks Electrical’s growth outlook, in our view. We continue to argue that the company’s well defined growth strategy - and ability to implement it - is superior to its peer group, much of which is not profitable. We reiterate our 150p / share fair value.
Link to full note here: https://www.equitydevelopment.co.uk/research/market-share-gains-drive-revenue-growth
A very well run company tipped in the press recently as a buy.
*** Marks Electrical - investor presentation (FY22 results) ***
Mark Smithson (CEO & founder) and Josh Egan (CFO) of Marks Electrical Group plc, which listed on the AIM market in November 2021, presented to investors following the release of their FY22 results.
They discussed the main highlights of the period and the key financial metrics, providing a detailed overview of their strategy for growth. The management team also answered a range of investor questions.
The video has been divided into chapters:
0:00:03 introducing Marks Electrical
0:03:10 FY22 key highlights & market share gains
0:05:06 Financial overview
0:12:33 Strategy for growth
0:41:40 Summary & Outlook
0:44:38 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/marks-electrical-investor-presentation-fy22-results