reports
Hybridan Small Cap Feast - 26 June 2024
26th June 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: TClarke (CTO.L) has left the Premium Segment of the Main Market. What’s baking in the oven? ** Potential**** Initial Public Offerings: ITF announced: 19 June 2024: IntelliAM, an artificial intelligence company focused on the consumer goods ...
Hybridan Small Cap Feast - 10 Jan 24
10th January 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje...
- Chris Wickham
Strong sales growth momentum remains in place
Marks Electrical’s sales growth remained strong at 17.8% in Q3, and the company appears on track to match our full year expectations of an 18.7% increase following a strong 21.5% advance in the previous year. But as a company with a core strength in premium products, gross margins have come under pressure - customers’ buying patterns have been negatively impacted by the challenging trading environment. As a result, we cut our FY2024 EBITDA forecast from £8.0m to £5.0m (and reduce FY2025 expectat...
- Chris Wickham
Market share gains and efficiency drive cash flow
Results confirm 24.8% sales growth to £53.9m in H1, and despite lower EBITDA margins, Marks Electrical converted 145% of operating profit into cash (vs. 118% for the whole of FY2023), enabling a 0.30p unchanged interim dividend. Margins, as expected, were reduced by the strategic decision to add integrated gas, electrical and television installation services to its next day delivery service, and increased wages for the company’s drivers. As a result, EBITDA margins were two percentage points lo...
Hybridan Small Cap Feast - 12 Oct 23
12th October 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje...
- Chris Wickham
Service uplift sparks 25% sales growth
Marks Electrical Group’s sales revenue advanced by 24.8% in the first half of its 2024 financial year, according to a trading update released today, as the company made further market share gains in its core categories. Notably strong advances by category included +71% for televisions, +74% for washer-dryers and +36% for American fridge-freezers. These gains were achieved against relatively flat domestic markets for both Major Domestic Appliances (MDAs) and Consumer Electronics (CEs). An improve...
- Sacha Morris
Hybridan Small Cap Feast 10/08/2023
Dish of the day Joiners: No joiners today. Leavers: National Milk Records plc (AQSE: NMRP) has left the AQSE Growth Market. What’s cooking in the IPO kitchen?** Announced ITF 4 August: Tan Delta Systems plc, a Sheffield based Company intends to IPO on AIM. Tan Delta has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to ...
- Chris Wickham
Sales growth exceeds 30% so far in FY2024
Marks Electrical Group (MRK) released a trading update ahead of its AGM. The company enjoyed strong trading in the first four months of its FY2024 financial year as enhanced delivery options, sustained high service quality levels and more widespread brand awareness helped the company to over 30% sales revenue growth in the period, compared with nearly 14% a year earlier. With further benefits of strong cash conversion – consistent with a proposed 0.66p final FY2023 dividend – we reiterate our fa...
Hybridan Small Cap Feast - 14 Jun 23
14th June 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti...
- Chris Wickham
Built-in installations enhance growth outlook
Marks Electrical's preliminary FY2023 results confirmed the 21.5% sales growth and £7.5m EBITDA announced in the April trading update. The company generated £7.1m of free cash flow in FY2023, compared with £5.7m a year earlier, to end the year with a £10.0m positive net cash balance. Moreover, sales gains were 30% in the first two months of the current financial year. An upgraded built-in installations programme represents an important addition to MRK's service offering, and raised awareness le...
- Chris Wickham
Sales advance by 21.5% to £97.8m in FY2023
A better than-expected 21.5% increase in sales revenue to £97.8m, higher EBITDA margins and strong cash conversion were the key features of today’s Marks Electrical Group (MRK) FY2023 trading update. In addition, a positive start to April augurs well for FY2024, a year in which we expect to see further market share gains and expansion of the product and service offering. The central investment case for the shares remains firmly in place, in our view. The company is well invested to meet demand ...
- Chris Wickham
Revenue growth accelerates to 33.4% in Q3
Rapid 33.4% revenue growth, margin expansion relative to the first half, and a record level of delivery volumes were the main features of Marks Electrical’s FY2023 Q3 trading update. Furthermore, the strength of Q3 business lends significant credibility to the company’s view that it is on track to achieve its full year targets. Based on a combination of relative valuation and DCF, we reiterate our long-held fair value of 150p for the shares.
- Chris Wickham
Connecting the growth drivers
Connecting the growth drivers Marks Electrical’s 15.1% first half sales growth was announced in last month's trading update, driven by market share gains. Today’s interim results release evaluates those share gains in more detail, as well as including three important indicators of ongoing and sustainable progress within the business – margin resilience, a strong return profile and the company’s net cash position. The company is well placed to make further share gains in H2. Despite a competitiv...
- Chris Wickham
Market share gains drive strong sales growth in H1
Continued and sizeable market share gains drove a 15.1% increase in first half sales for Marks Electrical Group (MRK), particularly impressive in a market that was contracting overall. The company made gains in both Major Domestic Appliances (MDAs) and Consumer Electronics (CE), despite both categories being weak for online business in the period. Moreover, the MRK cash position remains strong, outperforming expectations. These inherent business qualities are not captured in the current share p...
- Chris Wickham
Market share gains drive revenue growth
Significant market share gains in a particularly tough market environment were responsible for Marks Electrical recording a strong 13.7% sales revenue growth rate in the first four months of its FY2023 financial year. With a sustained and impressive 4.8 Trustpilot score, and flat inventory levels, the company appears well positioned to make further sales gains and convert revenue and profits into increased free cash flow. The current market share position implies massive headroom for growth, d...
- Chris Wickham
Connecting with customers
A better than expected EPS outcome, strong cash conversion and an unusually high return on capital were pleasing financial features of Marks Electrical Group’s (MRK) FY2022 results statement, published today. The company also reports an upbeat start to FY2023 while articulating a clear path to sustainable growth through its customer proposition, increasing brand awareness, higher operational capacity and favourable financial dynamics. Expecting further meaningful progress this year, we reiterate...
- Chris Wickham
Marks Electrical - sales grow 44% in FY2022 with ongoing momentum
Marks Electrical released today a pre-close trading update for twelve months to 31st March, which confirmed our expectations of 44% sales growth and 9.0% EBITDA margins. Moreover, the company’s strong end to the year – i.e. over 25% year on year growth in March 2022 - augurs well for FY2023, when we expect sales to expand by a further 20%. The strong £3.9m net cash position, sustained investment in marketing, and expansion to the UK delivery footprint all combine to support an optimistic view go...
- Chris Wickham
Lighting the touch paper
Marks Electrical’s proven ability to serve the sizable UK major domestic appliance market with premium products on a next day delivery basis is central 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. This report argues that a fair value / share is 150p. The group’s core operating model benefits fro...
- Chris Wickham
Lighting the touch paper
Marks Electrical’s proven ability to serve the sizable UK major domestic appliance market with premium products on a next day delivery basis is central 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. This report argues that a fair value / share is 150p. The group’s core operating model benefits fro...
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