Marks Electrical swings to H1 loss in 'challenging' market

(Sharecast News) - Online electrical retailer Marks Electrical said on Thursday that it swung to a loss in the first half as revenue fell in a challenging market. In the six months to 30 September, the company swung to an underlying pre-tax loss of £574,000 from a profit of £820,000 in the same period a year earlier. Revenue declined 9.9% to £53m and adjusted earnings before interest, tax, depreciation and amortisation dropped to £0.5m from £2m.

The retailer highlighted a "challenging" start to FY26, driven by a contracting market and a strategic refocus, with revenue and profitability impacted by cost headwinds such as increases in the National Minimum Wage and National Insurance Contributions. It also pointed to higher operating costs linked to the implementation of D365.

As a result, profitability was softer than it was expecting. Nevertheless, Marks said October was strong and it remains confident in revised full-year expectations.

Chief executive Mark Smithson said: "The first half of FY26 has been challenging for the business, reflecting a highly competitive market environment combined with continued cost pressures. During the period, the group has focused on repositioning its inventory holdings, as we announced on 25 September 2025, which has temporarily impacted top- and bottom-line performance.

"With inventory now realigned, the group has returned to revenue growth and improved profitability in October, in line with revised forecasts.

"With revenue and profitability improving in October, we remain confident in our full-year outlook and long-term strategy. I am extremely proud of the dedication and commitment shown by our colleagues over the past year.

"Despite softer financial results, significant progress has been made behind the scenes to strengthen our foundations. We are building a business for the future, and our focus on delivering best-in-class customer service continues to underpin that ambition."