UK markets open in 4 hours 13 minutes
  • NIKKEI 225

    26,765.84
    +273.87 (+1.03%)
     
  • HANG SENG

    22,253.77
    +534.71 (+2.46%)
     
  • CRUDE OIL

    108.16
    +0.54 (+0.50%)
     
  • GOLD FUTURES

    1,838.30
    +8.00 (+0.44%)
     
  • DOW

    31,500.68
    +823.28 (+2.68%)
     
  • BTC-GBP

    17,217.66
    -272.40 (-1.56%)
     
  • CMC Crypto 200

    461.74
    +7.84 (+1.73%)
     
  • ^IXIC

    11,607.62
    +375.42 (+3.34%)
     
  • ^FTAS

    3,975.07
    +100.39 (+2.59%)
     

Marks Electrical ‘ready to weather cost-of-living crisis’

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Marks Electrical has said it is well-placed to deal with the impact of the cost-of-living crisis because most of what it sells is necessary for people’s homes.

The business said it gets most of its money from so-called “distressed purchases” – products that customers buy because they have to, not because they want to.

“At present, 80% of our revenues come from distressed purchases, providing the group with a defendable position during a cost-of-living crisis,” the company said, as it promised to also look after staff during the squeeze.

The business saw revenue grow by 44% in the year to the end of March, hitting a record £80.5 million.

But it said pre-tax profit had dropped from £7.2 million to £6.4 million in the 12 months.

Chief executive Mark Smithson said: “Internally, we continue to monitor our pay structures and the cost of living to ensure all our employees are well-rewarded for their hard work, offering competitive salaries, commissions, and bonus structures across the board.

“The business may have my name on it, but it really is about teamwork, and I look forward to fostering our team spirit and family-orientated culture as we grow the business to become a go-to destination for premium electrical appliances in the UK.”

Marks Electrical listed last November after years of heavy growth. Since a spike later that month, shares have been slowly sliding, dropping more than 15%.

On Wednesday they regained a little ground, with a 2.2% rise following the news.

Mr Smithson said the business has expanded its range of products due to the cost-of-living crisis.

It now has more products in all price ranges, and has also put in new credit solutions which can let customers spread payments.

He added: “Our ancillary services, including add-ons and warranties, make up a very small proportion of our revenue, mitigating any impact on the group should customers cut back on these options.”

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting