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 competitive market, the company continued to invest in its brand and customer service levels. Moreover, MRK expects to meet current market expectations of profit growth for the full year.

The company’s intrinsic value incorporates its industry-leading 4.8 Trustpilot score and significant headroom in terms of both market share and brand awareness levels. A positive cash position was reflected in the announcement of a 0.30p interim dividend. We maintain our fair value of 150p per share.