Half Year Pre-Close Trading Update
Updated : 07:00
10 June 2021
musicMagpie plc
("musicMagpie", or "the Group")
HALF YEAR PRE-CLOSE TRADING UPDATE
Continued growth driven by favourable consumer trends
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 six months ended 31 May 2021, with strong underlying profitability and margin improvement.
H1 financial performance
£'m | H1 21
| H1 20 (CCY)1 | % change (CCY)1 |
Revenue | 72.5 | 70.2 | +3.4% |
Adjusted EBITDA2 | 6.2 | 5.4 | +14.8% |
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The Group's financial performance for the period is in line with management's expectations. Growth has continued to be driven by an increasing consumer adoption of circular economy models to recycle and reuse items, along with a growing consumer trend to buy goods and services from brands with strong ESG credentials.
In addition to the ongoing growth of musicMagpie's core re-commerce business, the Group's innovative new smartphone rental subscription service has made strong progress since its launch in October 2020. The service provides customers with a more affordable and flexible option than an outright purchase or a pay-monthly contract with a mobile network. As at 31 May, the service has achieved over 7,500 subscriptions.
Steve Oliver, Chief Executive Officer of musicMagpie, said:
"We are pleased with the strong underlying momentum within the business as musicMagpie begins its life as a listed company. The performance in the period demonstrates that the business continued on its growth trajectory whilst we successfully completed our IPO in April. We have continued to capitalise on the favourable long-term trends that are driving musicMagpie's growth as a leading re-commerce provider of consumer technology. We are particularly pleased with the performance so far of our new smartphone subscription service, for which we continue to see significant long-term potential."
Notes
1 "CCY" indicates figures reported on a constant currency basis. Constant currency means that US Dollar results in the comparative period have been translated at the same exchange rate applied to current year US Dollar results.
2 Adjusted EBITDA is a non-GAAP measure and has been calculated as earnings before interest, taxation, depreciation, amortisation and non-underlying items.
Enquiries
musicMagpie plc Steve Oliver, CEO Ian Storey, COO | Tel: +44 (0) 870 479 2705 |
Peel Hunt (Nominated Adviser and Joint Broker) Edward Knight Paul Gillam Nick Prowting Tom Ballard | Tel: +44 (0) 20 7418 8900
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Shore Capital (Joint Broker) Mark Percy Daniel Bush John More | Tel: +44 (0) 20 7408 4090 |
Powerscourt (Financial Public Relations) Rob Greening Elly Williamson Lisa Kavanagh | Tel: +44 (0) 20 7250 1446 |
Notes to Editors
musicMagpie is a leader in the re-commerce of consumer technology (including smartphones, tablets, consoles and wearables), disk media (including CDs, DVDs and games) and books, 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. Operating through its two trusted brands - musicMagpie in the UK and Decluttr in the US, the Group's core business model is simple: to provide consumers with a smart, trusted and sustainable way to buy, rent and sell refurbished consumer technology and physical media products.
It 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 to consumers in the year ended 30 November 2020 by the Group. In addition, the Directors estimate that that the Group re-sells approximately 2,500 tonnes of books and disc media each year that could have ended up as waste. As a result, the Company has received the London Stock Exchange's Green Economy Mark, which recognises companies that derive 50 per cent. or more of their total annual revenue from products and services that contribute 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.
Customers purchasing from musicMagpie receive branded refurbished product for a fraction of the price of buying new. All consumer technology products sold by the Group are sold with a free 12-month warranty.
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 4.7* rating on UK Trustpilot.
For further information please visit: www.musicmagpieplc.com/
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