MusicMagpie ‘remains confident for future profit growth’ despite half-year loss

MusicMagpie’s board “remains confident the business is well positioned for future profit growth” despite the newly-listed company falling to a pre-tax loss of £17.7m during the first half of its financial year.

The Stockport-headquartered firm has reported the figure for the six months to May 31, 2021, which compares to a profit of £2.5m during the same period in 2020.

However, on an adjusted basis, the business achieved a pre-tax profit of £4m for the half year, a rise from £3.3m, and its adjusted EBITDA went from £5.5m to £6.2m.

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MusicMagpie has also reported a revenue of £72.8m, up from £71.1m.

In a statement to the London Stock Exchange, the company added its UK revenue rose 6.6% to £58.1m, driven by “increasing consumer adoption of circular economy models” along with a growing consumer trend to buy goods and services from brands “with strong ESG credentials”.

The results come after the business completed its IPO in April, raising primary proceeds of £15m.

Chief executive and co-founder Steve Oliver said: “This has been a landmark period for musicMagpie, and we are very pleased with the performance of the business as it has adapted quickly to life as a public company.

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“We are seeing strong and growing demand for our unique circular economy model, as consumers continue to realise the benefits of buying and renting refurbished consumer technology products.

“In addition, there is a growing awareness of the rising problem of e-waste, as illustrated by the fantastic reaction to our ‘Mount Recyclemore’ sculpture at the recent G7 summit.

“We are now seeing more people than ever before looking to recycle their old gadgets whilst freeing up cash and decluttering their lives in the process.

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“These trends, combined with the launch of our exciting new mobile phone rental subscription service, mean that we continue to have a high degree of confidence in the future prospects of musicMagpie.”

A statement issued to the London Stock Exchange added: “Following the progress made in H1, the Board is pleased with the continued momentum across its core consumer technology business and key strategic initiatives: smartphone rentals, SMARTDrop Kiosks and corporate recycling.

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“Trading continues in line with management’s expectations for the full year and the board remains confident that the business is well positioned for future profit growth and that FY21 adjusted EBITDA will be in line with expectations.”

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