Full Year Pre-Close Trading Update

Musicmagpie

07/12/2022 07:00

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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 £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.  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 £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.

 

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) 870 479 2705

 Steve Oliver, CEO

 Ian Storey, COO

 Matthew Fowler, CFO

 Peel Hunt (Nominated Adviser and Joint Broker)  Tel: +44 (0) 20 7418 8900

 Paul Gillam

 Tom Ballard

 James Smith

 Shore Capital (Joint Broker)                    Tel: +44 (0) 20 7408 4090

 Malachy McEntyre

 Mark Percy

 Daniel Bush

 John More
                                                 Tel: +44 (0) 20 7250 1446

 Powerscourt (Financial Public Relations)

 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
(http://www.musicmagpieplc.com)

 

 

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