musicMagpie plc Full Year Pre-Close Trading Update (8259I)
December 07 2022 - 1:00AM
UK Regulatory
TIDMMMAG
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
GBP144.8m (2021: GBP145.5m) 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 GBP8.2m, better than management's prior expectations. The Group
has a GBP30m 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 Tel: +44 (0) 870
Steve Oliver, CEO 479 2705
Ian Storey, COO
Matthew Fowler, CFO
Peel Hunt (Nominated Adviser and Joint Tel: +44 (0) 20
Broker) 7418 8900
Paul Gillam
Tom Ballard
James Smith
Shore Capital (Joint Broker) Tel: +44 (0) 20
Malachy McEntyre 7408 4090
Mark Percy
Daniel Bush
John More
Tel: +44 (0) 20
Powerscourt (Financial Public Relations) 7250 1446
Rob Greening
Genevieve Ryan
Sam Austrums
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTEANAKEDLAFFA
(END) Dow Jones Newswires
December 07, 2022 02:00 ET (07:00 GMT)
Musicmagpie (LSE:MMAG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Musicmagpie (LSE:MMAG)
Historical Stock Chart
From Apr 2023 to Apr 2024