Marks Electrical Group (MRK) H2 2026 earnings summary

Executive summary

• Delivered revenue of £107.9m, down 8% year-over-year, reflecting a strategic exit from low-margin marketplace activity and a focus on core MDA sales.

• Adjusted EBITDA was £2.5m (2.3% margin), down from £4.2m, with profitability rebounding in H2 after a challenging first half.

• Statutory loss before tax improved to £0.4m from £1.7m loss in the prior year; adjusted EPS was 0.67p (2025: 1.54p).

• No final dividend recommended for FY26 due to market conditions and cash management priorities.

Financial highlights

• Gross profit was £25.5m (23.6% margin), down 11% year-over-year.

• Distribution costs reduced by 2% to £11.2m, with headcount in transport & installation down 13%.

• Operating cash conversion was negative at (69%), reflecting a shift to timely supplier payments and working capital adjustments.

• Net cash position at year-end was £4.4m (2025: £8.8m), with access to a £5m undrawn credit facility.

Outlook and guidance

• Entering FY27 with positive trading momentum, a strengthened cash position, and a focus on sustainable growth in revenue and profitability.

• Macroeconomic headwinds (inflation, interest rates, unemployment) expected to persist, making growth challenging.

• Advertising spend to return to 5–6% of revenue in FY27 to support brand awareness.