musicMagpie revenues and profits dip as it returns to normal levels of trading
Revenues and profits at musicMagpie have taken a dip as the group returned to normal levels of trading.
The online retailer, which resells used mobile phones, tablets, games as well as books and CDs, reported a 5.1% decline in revenues to £145.5m for the year to 30 November 2021.
It was down on the previous year’s turnover of £153.3m, which had been bolstered by consumer spending during the pandemic while its most recent results reflect normalised trading, the group said.
Adjusted pre-tax profits were down by 14.4% to £7.9m while it reported an adjusted EBITDA of £12.2m, down on last year’s £13.9m, in line with management expectations.
The group, which joined the AIM market last April, hailed strong progress in its new device rental subscription service, launched in October 2020, with around 19,000 active paying subscribers as at 28 February 2022.
Success of the rental service has led the Stockport group to expand in to new product categories including tablets, games consoles, MacBooks and wearables.
During the financial year musicMagpie also launched a sustainability partnership with Asda, including a projected roll-out expansion of musicMagpie’s SMARTDrop kiosks to nearly 300 Asda stores commencing March 2022.
So far more than 8,000 devices have been traded paying out over £2.3m to consumers.
Steve Oliver, CEO & co-founder of musicMagpie, said: “This has been a landmark year in the history of musicMagpie, and I am hugely proud of everything that the business has achieved.
“We have delivered strong operational and strategic progress in our first year as a listed company, and have done so while staying true to our clear environmental and social focus and our long-standing ‘smart for you, smart for the planet’ ethos.
“During the year, we gave a ‘second-life’ to over 400,000 technology products, as well as 2,500 tonnes of disc media and books.
“This helped to save over 50,000 tonnes of CO2, which is the equivalent to providing heating for over 18,000 homes.”
He added: “In the current uncertain climate for consumers, the benefits of buying and renting refurbished consumer technology products, whilst helping the environment, has never been more compelling.
“We are particularly pleased with the progress being made by our rental subscription service, which provides customers with a more affordable and flexible option than an outright purchase or a pay-monthly contract.”
