Marks Electrical Share Discussion Threads

[darrin1471] 05/9/2023 10:40

Increasing volumes were noted on this thread at the end of June.
Also worth noting post 76 where I reported that Mark had said he was willing to sell some of his 73.6% once the share price was above the IPO.

Speculation: If I was trying to build a stake in MKS I would have been in contact with Mark or MKS's broker to register my interest and a price. I would then be trying to add as much as I could at a price below the IPO. We may be stuck below IPO price until a buyer has got near a disclosable stake. If Mark sells a chunk of his 73.6% then that is when I think we could see a pop.

What percentage will Mark sell? Taking it below 50% may be seen as a positive. When I have spoken to other small investors, the most common concern about MKS is that Mark could delist and take it private again as he has such a large holding.

[74tom] 04/9/2023 21:16

The chart is starting to look really good here, should see a very strong move on the break of £1.

It's worth noting that volume has been on an upward trend for the last few quarters;

Q3 2022 1.6m
Q4 2022 1.9m
Q1 2023 2.8m
Q2 2023 4m
Q3 2023 to date; 4m

Likely this Q will comfortably break 5m given the first 2 days of September have seen 800k shares traded...

Why is this relevant? With the CEO owning 73.6%, there are only 27.6m shares to go around. Some 29% of that free float has been traded since the start of Q2 alone.

There are only 3 II holders; Cannacord, Stancord & Octopus. One of them is selling right now & cleared another 100k today to another II buyer. When they stop, this pops.

[darrin1471] 14/8/2023 09:22

There appears to be a seller at 100p.
Higher than normal volumes for the last 3 weeks. 1.5m extra traded over last 3 weeks above normal.
I would of thought the IPO price of 120p was the next step. Mark has said he was willing to sell more stock above the IPO price.

[cf456] 14/8/2023 09:02

Potential breakout above 100p.

Could lead to a decent move up, especially given the recent strong news.

[edmonda] 10/8/2023 07:48

New research note post the AGM trading update here:

Summary: 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 fair value of 150p for the shares.

[darrin1471] 10/8/2023 07:46

AGM trading update for the four months ended 31 July 2023

Highlights

-- Strong trading period in the first four months of FY24 (April to July), with revenue growth of 30.7% to GBP36.2m (4 months FY23 GBP27.7m)

-- Increased market share in Major Domestic Appliances ("MDA") from 2.4% in Q1-23 to 3.0% in Q1-24, with Marks Electrical share in the online segment of the market growing from 4.5% to 5.7%(1)

-- Increased market share in Consumer Electronics ("CE") from 0.3% in Q1-23 to 0.6% in Q1-24, with Marks Electrical share in the online segment of the market growing from 0.6% to 1.0%(1)

-- Strong performance across categories with a particular stand-out performance in televisions (+84%), washer-dryers (+83%), and cordless vacuum cleaners (+62%)

-- Continued growth in next-day integrated, gas, electric and television installation services, with over 4,500 installation orders in the period, vs 1,500 in the prior year, a growth rate of 200%

-- Investment in distribution centre, vehicles and processes, preparing us for peak autumn trading and our future growth ambitions

-- Maintained industry leading Trustpilot score of 4.8 and reached over 50,000 reviews with 95% of those reviews being 4 and 5 star, demonstrating the strength of our best-in-class customer proposition

-- Robust balance sheet and net cash position, supporting the proposed final dividend of 0.66p per share, subject to shareholder approval at today's AGM

Mark Smithson, Chief Executive Officer, commented:

"We've made a fast start to FY24 with revenue growth of over 30% against an MDA & CE market that is marginally down in the first months of our financial year.

We've maintained our industry leading Trustpilot score of 4.8, and reached over 50,000 reviews on Trustpilot, which I am particularly proud of as it takes a combined effort from all our excellent team members, from sales ordering, through to picking, logistics, delivery, and customer aftercare, to deliver an exceptional customer service.

Our focus and attention on growing our installation offering is enabling us to create a truly differentiated, market-leading proposition for customers, further enhancing the strengths of our operating model. We have been very encouraged by the take-up of this service, which is now available to over 65% of the UK population on a next-day basis, and are excited about its potential.

Despite a challenging market backdrop, including wage inflation and strong competitor activity on gross margin, we have maintained our tight control on inventory, overhead cost management and disciplined capital allocation, ensuring we have a healthy cash position and remaining focused on profitable market share gains as our brand awareness continues to grow.

We've started August well and are laser-focused on maintaining our performance management discipline on revenue, profit and cash in order to continue to demonstrate our superior proposition and become the UK's leading premium electrical retailer."

[darrin1471] 31/7/2023 13:40

A few chunky trades in Marks Electrical last week on Wednesday and Thursday totalling around 700k at 93p.
Above normal number of trades on Thursday, Friday and today has moved the price up close to year highs.

[darrin1471] 03/7/2023 09:13

Director Buy
MRK FD Josh Egan buys 25,569 @ 98.537p
Holding now 90,000.
Josh's buy does not match up with any of the trades I can see on the LSE

[darrin1471] 26/6/2023 19:19

Last two weeks have seen the biggest and 3rd biggest trading volumes since IPO.
It continued today with 2 x 100k at 100p and 99.9p.
A happy buyer and seller at this level.
I'm hoping the buyer wants a lot more including some of Mark's at 110 or above.

[cf456] 19/6/2023 11:11

Yes, highest volume since listing by the looks of it.

Price rising too.

[darrin1471] 19/6/2023 11:06

2x 275k trades at 96p this morning.
and another 275k @ 95.904
1.2m+ in two trading days.
It should be an interesting week.

[cf456] 17/6/2023 09:53

If investors are keen to buy after the recent results (and the initial upwards move in price would seem to suggest that they are), then the continued tight free float is a good thing in that there is limited supply around and the price will move up quickly with even a small level of demand.

Instis buying a portion of the CEO’s holding above the 110p IPO price would help with future liquidity.

The share price has started moving again after a multi month sideways base. 120p looks to be a reasonable short term target. Of course over the longer term the CEO has stated that he’s looking for revenues of £500m, more than 5x current revs, so a lot of share price upside potential if that comes to pass.

[darrin1471] 16/6/2023 17:31

I asked Mark on the "online presentation for investors" if he would be willing to sell some of his holding which is currently 73.6%.
He answered without hesitation which implied he had already given it some thought. Mark said he knows he needs to reduce but would not do so below IPO price in fairness to IPO shareholders.
There is only 12m shares available outside of major shareholders, so anyone wanting a decent stake will need to buy up to the IPO price of 110p.
Not sure if 110p will act as a ceiling or a catalyst to kick on

[cf456] 16/6/2023 15:28

One insti buying from another perhaps.

[darrin1471] 16/6/2023 15:24

Some larger than normal trades today.
Largest daily volume since 24/08/2022

[cf456] 16/6/2023 14:10

Above 100p and price could really start motoring.

[darrin1471] 16/6/2023 11:16

Both 96p trades went into auction.
I just tried some dummy trades and could not get a quote for even 500 shares.

[cf456] 16/6/2023 09:03

Somebody keen on buying the shares this morning, paying over ask in the 8am and 9am auctions.

One lot of 25k at 96p, then a second of 15k at 96p. Both whilst the ask was 95p.

[edmonda] 14/6/2023 07:33

Preliminary FY Results - "Built-in installations enhance growth outlook"

Link to new research report:

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 (vs. £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. This activity is now managed in-house and enables the company to install appliances into fitted areas within dwellings – notably kitchens – using a specially trained team of installers including gas safe registered engineers. Built-in installations suit MRK’s focus on premium branded products.

MRK’s raised awareness levels were notable in London, where they increased from 12% to 22% between October 2022 and May 2023. Indeed, London now has the highest awareness rate for MRK in the UK, surpassing even the company’s East Midlands home region - a reinforced presence in the nation’s capital should be seen as a clear route to growth.

The key drivers of MRK’s investment case remain in place (see our initiation report: "Lighting the touch paper"). However, the consistency of overall approach should not mask significant ongoing changes and continuing improvements within the group as it enlarges the business overall. MRK’s delivery against service level, brand awareness, growth and cash generation objectives are not currently reflected in MRK’s share price, in our view. As a result we maintain our 150p fair value which implies FY2024 EV/sales of 1.3x and 16.2x FY2024 EV/EBITDA based on our current forecasts.

[darrin1471] 14/6/2023 07:19

Strong trading momentum in the first two months of FY24, with revenue growth exceeding 30% year-on-year

[darrin1471] 12/6/2023 14:19

Frasers Group acquires 19% stake in electricals retailer AO World



AO vans to be filled with Mike Ashley's sports equipment and sofas if he gets his way.

[cf456] 12/6/2023 13:58

Shore Capital today

Shore added: "In other news, major UK logistic company, Tuffnells, prepares for administration and instructed its 2,300 employees to go home on Friday afternoon. The company has claimed to be an expert in handling large, bulky items and we therefore see AO and Marks Electrical as natural beneficiaries from perhaps lower delivery driver wage pressure."