Marks Electrical Group plc Lease Extension

RNS Number : 2015L

Marks Electrical Group plc

18 April 2024

 

Marks Electrical Group plc

Lease Extension

Marks Electrical Group plc ("Marks Electrical" or "The Group"), a fast growing online electrical retailer, today announces that it has entered into a new three year lease extension (the "Lease") at the Company's headquarters and main site of operations at 4 Boston Road, Leicester (the "Property").

The Lease is between Mavrek Properties Limited & The Smithson Pension Fund (together, "the Landlords") and the Company and has a new three year term commencing 30 September 2024 with a below inflation increase to £640,000 per annum to be satisfied in cash. The Lease replaces the existing lease in place with the Landlords for the Property which expires on 29 September 2024, as disclosed in the Company's Admission Document. 

Related Party Opinion

 

The Landlords are Related Parties by virtue of the fact that Mark Smithson, the Company's CEO and 73.6% shareholder, is the ultimate beneficiary of The Smithson Pension Fund and the controlling shareholder in Mavrek Properties Limited.  Therefore, the Lease is considered a related party transaction pursuant to the AIM Rules for Companies. The directors, excluding Mark Smithson, having consulted with Canaccord Genuity Limited, the Company's Nominated Adviser, consider the terms of the Lease to be fair and reasonable insofar as the Company's shareholders are concerned.

 

Enquiries:

Marks Electrical Group plc                                                                                              Via Dentons Global Advisors:

Mark Smithson, CEO                                                                                                                           Tel: [phone]

Josh Egan, CFO                                                                                                                  

 

Dentons Global Advisors (Financial PR)

Jonathan Brill / James Styles / Nishad Sanzagiri                                                                                 Tel: [phone]

[e-mail]                                                                                                                                                 

 

Canaccord Genuity (NOMAD and Broker)

Max Hartley / George Grainger (Nomad) / Kit Stephenson (Sales)                                                     Tel: [phone]

                                                                               

About Marks Electrical

Marks Electrical is a fast growing, highly scalable premium electrical retailer which sells, delivers, installs and recycles a wide range of household electrical products. The Group was founded in Leicester in 1987 by Mark Smithson and has scaled into a nationwide online retailer with a compelling growth track record, thanks to its vertically integrated, low-cost, high-quality operating model, supported by the ongoing structural shift of consumers to purchase online. The Group operates within the UK Major Domestic Appliances (MDA) and Consumer Electronics (CE) market, estimated to be worth approximately £7 billion.

Primarily through its simple, clear and intuitive website - markselectrical.co.uk - the Group offers over 4,500 products from over 50 leading brands across its main product categories, which include Cooking, Refrigeration, Washers & Dryers, Dishwashers and Audio-Visual. These products are sourced from UK distributors of the brands, with whom the Group maintains strong and direct relationships. Marks Electrical delivers direct to customers in its owned and branded vehicles, operated by the Group's skilled team of delivery drivers, who are also able to offer installation and recycling services.

For further information, visit the Marks Electrical corporate website: https://group.markselectrical.co.uk and its retail website: https://markselectrical.co.uk/.

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