Full Year Pre-Close Trading Update

RNS Number : 8259I

musicMagpie plc

07 December 2022

 

7 December 2022

musicMagpie plc

("musicMagpie", or "the Group")

FULL YEAR PRE-CLOSE TRADING UPDATE

Financial performance in line with management's expectations

musicMagpie, a leading re-commerce business in the UK and US specialising in refurbished consumer technology, is pleased to announce a pre-close trading update for the full year ended 30 November 2022. 

The Group's financial performance for the year is in line with management's expectations.

Following cautious consumer behaviour over the summer and early autumn, November saw increased activity culminating in record sales during Black Friday week.  Full year revenue for the Group will be £144.8m (2021: £145.5m) and EBITDA will be in line with management's expectations.

The Group's growing rental service also had a strong year end.  Whilst rental reduces outright sales as consumers choose to rent rather than buy, it provides a higher margin and significantly greater profitability to musicMagpie over the lifetime of the device. Active subscribers at 30 November 2022 were 30,500, up 27% since the Group's interim period end on 31 May 2022.  To further improve recurring revenues from rentals and reduce consumer costs, the Group launched a 24 month contract option in December 2022 and expects this expansion of the offering to help drive growth into the new financial year.

With strong trading in November, net debt at 30 November 2022 was £8.2m, better than management's prior expectations.  The Group has a £30m committed revolving credit facility to support future growth in the rental service.

Whilst cognisant of the challenging consumer environment and growing cost pressures on both businesses and the consumer, the Board remains confident in the Group's strategy and in its medium-term growth prospects, underpinned by the growing and differentiated rental proposition.

Enquiries

musicMagpie plc Steve Oliver, CEO Ian Storey, COO Matthew Fowler, CFO	Tel: [phone]
Peel Hunt (Nominated Adviser and Joint Broker) Paul Gillam Tom Ballard James Smith	Tel: [phone]
Shore Capital (Joint Broker) Malachy McEntyre Mark Percy Daniel Bush John More	Tel: [phone]
Powerscourt (Financial Public Relations) Rob Greening Genevieve Ryan Sam Austrums	Tel: [phone]

About musicMagpie

Operating through two trusted brands - musicMagpie in the UK and decluttr in the US - musicMagpie's core strategy is simple: to provide consumers with a smart, sustainable and trusted way to buy, rent and sell refurbished consumer technology and physical media products with sustainability running to the very heart of its operations. Founded in 2007, the Group has an established presence in the UK, with operations in Stockport, Greater Manchester, and in the US in Atlanta, Georgia.

musicMagpie has a strong environmental and social focus, as demonstrated by its trademarked 'smart for you, smart for the planet' ethos. Over 400,000 consumer technology products were resold in FY21. In addition, the Group re-sells approximately 2,500 tonnes of books and disc media each year that could have ended up as waste. During 2021, musicMagpie's UK consumer tech and disc media customers, along with its trade partners, helped to save over 50,000 tonnes of CO2 by buying, selling and renting with the Group - an amount equivalent to providing heating for over 18,000 homes. The Group has been given the London Stock Exchange's Green Economy Mark in recognition of its contribution to the global green economy.

When selling to musicMagpie, the customer is offered a fixed valuation via the website, provided with free logistics to ship the products and (subject to it being 'as described') receives payment for their product on the day of arrival at the Group's warehouse. The Group has also partnered with Asda to give customers the option of using its SMARTdrop Kiosks in store for a fast and easy way to recycle phones for instant cash. Customers purchasing or renting from musicMagpie receive branded refurbished product for a fraction of the price of buying new.

The Group has the highest number of seller reviews on both Amazon and eBay and has consistently achieved extremely positive feedback scores. The Group also has a 4.5* rating on UK Trustpilot with over 245,000 reviews. 

For further information please visit: www.musicmagpieplc.com

 

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