musicMagpie, the Stockport-based specialist in refurbished consumer technology, has announced its trading update for the year to November 30, 2022.
The group says that its financial performance for the year is in line with management’s expectations, and November saw increased activity culminating in record sales during Black Friday week following cautious consumer behaviour over the summer and early autumn.
Full year revenue for the group will be £144.8m, slightly down from the previous year’s £145.5m, and EBITDA of £13m, which is in line with management’s expectations.
The group’s growing rental service also had a strong year-end. While rental reduces outright sales, it provides a higher margin and significantly greater profitability to musicMagpie over the lifetime of the device. Active subscribers at November 30, 2022 were 30,500, up 27 per cent since the group’s interim period end on May 31, 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.
