Chris Wickham, investment analyst sees impressive growth for Marks Electrical
Episode 655, Apr 05, 2022, 11:33 AM
Chris Wickham, investment analyst at Equity Development covers Marks Electrical #MRK who he says has a proven ability to serve the sizable UK major domestic appliance market, with premium products on a next day delivery basis, and that this is the centre piece to its impressive growth story.
Chris Wickham, investment analyst at Equity Development covers Marks Electrical #MRK who he says has a proven ability to serve the sizable UK major domestic appliance market, with premium products on a next day delivery basis, and that this is the centre piece to its impressive growth story.
The company’s combination of proprietary technology, scalable business model, ample demand headroom and demonstrably high-quality leadership supports the case for a higher valuation than so far awarded by investors.
Chris's report argues that a fair value per share is 150p whereas the current share price is below 100p.
To view Chris's report click HERE
Marks Electrical's recent trading update for its third quarter ended 31 December 2021
Financial highlights
· Record trading period in Q3-22 with 27.4% revenue growth to £22.3m (Q3-21 £17.5m), including a strong performance during the seasonally important Black Friday and Christmas trading events
· Year to date (YTD) revenue growth of 55.0% to £59.8m (2021 YTD: £38.6m), keeping the business on track to deliver our 2022 revenue target
· Operational leverage achieved during the period, driving margin expansion, with the Group on track to achieve its full-year Adjusted EBITDA margin target of 9%
· Maintained inventory levels during peak trading period and continued focus on working capital management
Operational highlights
· Growing in-house fleet of delivery vehicles achieved record delivery volumes during the quarter, with scope for further capacity utilisation as we continue to grow
· Market share growth in Major Domestic Appliances segment continued during the period
· Strong performance in Television segment with YTD revenue from this category up 103% YoY
· Improved Trustpilot rating from 4.7 to 4.8
About Marks Electrical
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.