**Summary of Marks Electrical Group plc HY26 Interim Results (November 2025)**
**Financial Performance**
**Revenue** £53.0 million, down 9.9% year-on-year (YoY) due to a challenging market, which declined by 2.0% in H1-26.
**Gross Margin** Stable at 24.3% (H1-25: 24.6%).
**Adjusted EBITDA** £0.5 million (H1-25: £2.0 million).
**Adjusted EPS** (0.31p) (H1-25: 0.72p)
Statutory EPS(0.45p) (H1-25: (0.79p)).
**Cash Position** Debt-free with closing net cash of £1.5 million (H1-25: £6.7 million), reduced due to working capital outflows for inventory optimization.
**Operational Highlights**
**ERP System (Microsoft Dynamics 365)** Completed first full year of operation, with initial challenges leading to short-term costs. Expected to deliver increased efficiencies, automation, and improved insights in the near to medium term.
**Customer Satisfaction** Maintained Trustpilot score of 4.8 with over 90,000 reviews, 93% of which are 4 or 5 stars.
**Returning Customers** Achieved highest rate of returning customers since IPO, despite challenging conditions.
**Outlook**
**Revenue and Profitability** Returned to growth in October, with management confident in revised FY26 market expectations.
**Strategic Focus** Aiming to unlock efficiencies and automation from D365 while maintaining disciplined cost management.
**Market Position** Operates in a £7 billion market with substantial growth potential, well-positioned to capture market share as conditions improve.
**Leadership Changes**
**Interim CFO** Tom Pallatt appointed as Interim Chief Financial Officer, a non-Board position.
**Board Resignation** Alyson Fadil stepped down from the Board at the end of November 2025, with Warren Middleton taking over as RemCo Chair.
**CEO Commentary (Mark Smithson)**
Acknowledged a challenging H1-26 due to competitive market conditions and cost pressures, particularly from inventory repositioning and ERP implementation.
Highlighted October’s return to revenue growth and improved profitability, aligning with revised forecasts.
Emphasized progress in strengthening foundations and building a future-ready business, with a continued focus on best-in-class customer service.
**Financial Review**
**Revenue Decline** Strategic inventory shifts and market contraction led to a 9.9% YoY revenue drop.
**Cost Pressures** Increased distribution and installation costs (up 130bps YoY to 11.2% of revenue) due to higher wages and reduced delivery density.
**Marketing Efficiency** Advertising and marketing costs controlled at 5.0% of revenue.
**Cash Flow** Underlying cash outflow of £6.3 million due to working capital adjustments, with a cash recovery expected in H2-26.
**Conclusion**
Marks Electrical Group plc faced a challenging H1-26 but demonstrated resilience through strategic adjustments and operational improvements. With a focus on efficiency, customer satisfaction, and market potential, the Group is positioned for recovery and growth as market conditions stabilize.