1 April 2022

Marks Electrical Group plc  

("Marks Electrical" or "Company")

Related Party Transaction

The Company confirms that as part of the completion of its financial full year, its wholly owned subsidiary, Marks Electrical Limited ("MEL") settled a net cash payment of £628,510 on 31 March 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 £1.35m.

This process is part of a year-end settlement and 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. Further details of this arrangement are described in the Admission Document, dated 5 November 2021.

Following this net cash payment, the Company has a closing cash balance on 31 March 2022 of over £3.0m.

The Group looks forward to providing an update on the progress it has made during the financial year ended 31 March 2022 with the release of its pre-close full year trading update on 12 April 2022.

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 Rule 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.

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