Listen to this article here
Stockport based circular economy pioneer, musicMagpie, has announced of its unaudited interim results for the six months ended 31 May 2023.
The announcement follows the business’ half year trading update of 19 June 2023.
Business activity was affected by postal strikes and low consumer confidence at the beginning of H1; however, musicMagpie has seen trading performance increase from February onwards, with Q2 EBIDTA up 42% on the same period in 2022.
While revenue fell overall on the previous year (£61.9 million in H1 of 2023, compared to £71.3 million in the same period of 2022), gross margin increased 3.1% to 29.7% (H1 2022: 26.6%) driven by a combination of direct from consumer product sourcing, a higher proportion of sales through the musicMagpie store, and an increasing contribution from rental subscriptions.
79% of musicMagpie’s consumer technology sales in the UK come via its website, rather than through third parties and the group’s rental device subscription service has increased to 39,000 active customers as of 31st May 2023. SMARTDrop kiosks in supermarkets, allowing customers to receive instant payment when trading in their mobile phone, now account for 45% of musicMagpie’s Consumer Technology sourcing in the UK.
Overall, unaudited interim results for the six months to the end of May 2023, show EBIDTA up 7.7%, with good momentum as musicMagpie enters its more important half of the year and is trading in line with management expectations.
Commenting on the results, Steve Oliver (pictured), Chief Executive Officer of musicMagpie, said:
“After a challenging first quarter, I am pleased with the performance of the business during Q2 and the momentum that has been carried over into H2, which is traditionally the seasonally more important half for musicMagpie. By focusing on ‘buying and selling for more margin’, which includes sourcing more products directly from consumers and increasing the proportion of sales made through the musicMagpie store, we have delivered a strong improvement in Consumer Technology gross profit.
“Looking ahead, we have a clear plan for our rental business and for our enhanced Buy Now Pay Later offering, which should drive sales and make our offering even more attractive to consumers looking to save cash.
“Despite the tough consumer environment, we expect consumers to increasingly look to the refurbished tech market and are confident that the business has the right strategy in place for future profit growth.”