Annual financial performance in line with musicMagpie management expectations

Steve Oliver, CEO of musicMagpie at its Distribution Centre

Stockport-based musicMagpie, the circular economy pioneer specialising in refurbished consumer technology in the UK and US, said its financial performance for the year to November 30, 2022, has been in line with management expectations.

In a trading update today it said, 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. While 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 November 30, 2022, were 30,500, up 27% since the group’s interim period end on May 31, 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 November 30, 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.

The group said: “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.”

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