17 November 2022

Marks Electrical Group plc

("Marks Electrical" or "Company")

Related Party Transaction

The Company confirms that its wholly owned subsidiary, Marks Electrical Limited ("MEL") settled a net cash payment of £153,420.04 on 16 November 2022, to Mark Smithson (CEO) in relation to previously disclosed historical arrangements. The payment is subject to PAYE and NIC taxes resulting in a total outflow of £336,162.43.

This final transaction brings to a close the aforementioned historical arrangements as outlined in the Company's Admission Document at the time of its IPO. There is no financial impact on the Company or its current trading given that these balances were already provided for on the Balance Sheet at the year ended 31 March 2022, and fully disclosed in the related party transaction note within the financial statements. Further details of this arrangement are described in the Admission Document, dated 5 November 2021.

Related party transactions

Given Mark Smithson's position as a Director and substantial shareholder of the Company, the settlement to Mark Smithson is deemed to be a related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies.

Under the AIM Rules, where a company enters into a related party transaction, the independent directors of that company are required, after consulting with the company's nominated adviser, to state whether, in their opinion, the transaction is fair and reasonable in so far as its shareholders are concerned.

The Independent Directors, being Marnie Millard, David Wilkinson and Aly Fadil, have considered the terms of the settlement and having consulted with Panmure Gordon, the Company's nominated adviser, the Independent Directors of the Company believe that the terms of the settlement are fair and reasonable in so far as the Company's shareholders are concerned.

Enquiries:

Marks Electrical Group plc                                                                                Via Dentons Global Advisors:

Mark Smithson, CEO                                                                                                            Tel: +44 (0)20 7664 5095

Josh Egan, CFO                                                                                                                  

Dentons Global Advisors (Financial PR)

Jonathon Brill / James Styles / Fern Duncan                                                                        Tel: +44 (0)20 7664 5095

markselectrical@dentonsglobaladvisors.com                                                                                                                                                                                                 

Panmure Gordon (NOMAD and Joint Broker)

Oliver Cardigan / Dougie McLeod (Corporate Finance)                                                        Tel: +44 (0) 207 886 2500

Erik Anderson (Corporate Broking)                                                                                   

Berenberg (Joint Broker)

Matthew Armitt / Michelle Wilson / Richard Bootle (UK Investment Banking)                       Tel: +44 (0) 20 3207 7800

About Marks Electrical

Marks Electrical is a fast growing, highly scalable, technology driven e-commerce electricals 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 up 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 £8.0 billion.

Primarily through its simple, clear and intuitive website - markselectrical.co.uk - the Group offers over 4,000 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/.