Margin improvements behind 2023 EBIDTA rise for musicMagpie

Stockport-based circular economy pioneer, musicMagpie, has revealed significant margin improvement have contributed positively to the tech reseller’s annual results to 30th November 2023.

In its annual results, published today (13th March), musicMagpie has recorded a 15.4% increase in EBIDTA to £7.5 million. The business, which has its head office at Stockport Exchange, cited improved margins and a reduction in overheads as driving its performance.

MusicMagpie has also reported a rise in gross profit ro £23.4 million within its core consumer technology business, which now accounts for 70% of revenue. The company’s SMARTDrop kiosks, which are located across 290 ASDA stores, now account for up to 43% of the Consumer Technology items bought by musicMagpie from UK customers.

Improvements to margins have in part been derived from continued growth in the business’ device rental subscription model. The number of subscribers to the company’s innovative scheme increased to 37,100, in 2023, which amounts to approximately £3.6 million of committed revenue into 2024.

After closing 2023 with record Black Friday sales, musicMagpie’s trading in the first quarter of 2024 was in line with management’s expectations.  This positive start to the new financial year, combined with the recent changes made in the US to the Group’s Consumer Technology buying strategy and operations, cost reduction exercises in the UK and lower investment levels into the rental offering, give the musicMagpie Board confidence in the Group’s medium-term prospects and performance throughout 2024.

Commenting on the results, Steve Oliver (pictured), Chief Executive Officer & Co-Founder of musicMagpie, said:

“Following a successful end to FY23 we are pleased with FY24’s Q1 performance. Having recently made changes to our US Consumer Technology buying strategy and operations, and implemented further cost savings in the UK, we believe that musicMagpie is well positioned for the remainder of the year. We expect second-use markets to continue to grow which will complement our strategy of unlocking a ‘world of inventory’ from consumers homes and providing them with a solution that is ‘smart for you, smart for the planet’ across of our existing product categories and potential new product categories. As such we remain confident in musicMagpie’s future prospects.”