A family-owned online electrical retailer is planning to float on the AIM stock exchange.
Leicester-based TV and white goods specialist Marks Electrical has grown from a small shop selling kitchen appliances to a £56 million turnover nationwide operation.
It was set up in Leicester in 1987 by ex-Rumbelows salesman Mark Smithson, 56, who turned it into one of the UK’s first online electrical suppliers in 2005.
On the back of strong lockdown sales, the business has seen its share of the £5.3 billion domestic appliances market grow from 0.76 per cent to 1.22 per cent in the past year.
Today it sells around 3,000 products on its markselectrical.co.uk site including cookers, fridges, washing machines, dryers, dishwashers and TVs – all sourced from UK distributors.
Revenues grew to £56 million in the year to March, up 78 per cent on the previous year, helped by more people shopping online during the pandemic.
Pre-tax profits for the year were £7.1 million, up from £790,000 a year earlier.
The business, which is now based in Beaumont Leys on the edge of Leicester, has its own fleet of delivery drivers, and offers installation and recycling services. Overall it employs around 110 people.
Admission to the Alternative Investment Market (AIM) – a sub-market of the London Stock Exchange designed to help smaller companies access capital – is expected later this month and will be overseen by Panmure Gordon (UK).
Mr Smithson, the company’s chief executive, said: “I am delighted to announce our intention to list on AIM.
“This is an important step in our growth journey as we continue to scale the business and deliver premium electrical items to the growing number of consumers buying electricals online.
“We see significant opportunities to continue to grow our market share, improve our brand awareness, and further build on our strong trading momentum.”
As part of the plans, the business is bringing in three experienced non-executive directors: Marnie Millard, a former CEO of Vimto’s owner Nichols Plc; ex-Ernst & Young senior partner David Wilkinson; and human resources specialist Alyson Fadil who has held senior positions at Selfridges, Missguided and Sofology and is chief people officer at digital clothing and footwear retailer N Brown Group.
Mr Smithson said: “I am also looking forward to Marnie, David and Alyson joining the board. Their experience is already proving invaluable as we move forwards to our listing.”
Marnie Millard said: “Mark and his team have built a high-quality, innovative business over the past three decades and I am delighted to be joining the board as chair at this exciting time.
“As one of the first electrical retailers to move to selling goods online, Marks Electrical has deep market knowledge and understanding of its customers that has been key to its sustained growth.
“With a scalable platform, underpinned by proprietary technology, a simple distribution network and a vertically integrated delivery model, the business has many growth opportunities ahead and I look forward to working with Mark and the board.”
A statement announcing the intention to float said Marks Electrical it was keen to build on the 6 per cent of the population of England who were aware of the brand, and its central warehouse in Leicester – 15 minutes from the M1 – enabled “cost and time effective” delivery to more than 80 per cent of the UK population.
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