Marks Electrical Group PLC (AIM:MRK) jumped in early deals on Wednesday after the online electrical retailer revealed strong revenue growth for the fourth quarter and full year to the end of March 2023.
Revenue for the 2023 financial year reached a record £97.8mln, a rise of 21.5% on the previous year, while fourth-quarter sales surged 20% higher to £24.8mln, the company said in a trading update.
The higher revenue combined with cost discipline led to EBITDA margin expansion, it said, and full-year underlying profit (adjusted EBITDA) is now expected to exceed its full-year target of £7.5mln.
Marks Electrical said it continued to win market share in the domestic appliance and consumer electronics markets, while its newly formed integrated, gas, electric, and television installation services saw growth of over 80% year on year in the fourth quarter.
The company also reported strong cash conversion and closed the year with net cash of £10mln.
Commenting on the outlook for the current year, chief executive Mark Smithson said: “As we look to FY24, following a strong exit in March and a positive start to April, we are wholly focused on maintaining our performance management discipline on revenue, profit and cash in order to continue to demonstrate our differentiated proposition."
Shares had gained 7.78% to 90.00p by 8.30am, falling back from an earlier high of 94p.