Shares in musicMagpie are down by almost 70 per cent after it issued a profit warning this morning.
In a trading update to The City, the Stockport-based etailer said that the performance of its consumer technology business, which represents about two thirds of group revenue, had been weaker than expected and margin pressures have persisted. It added that profits for the current financial year are set to fall below expectations.
The company said: “Historically, October and November have been material contributors to overall group performance, with heightened activity and consumer interest around the Black Friday sales period, in particular. Whilst the group continues to expect that Black Friday will prove to be a peak trading period, it now believes it is prudent to reduce its expectations for contribution from this period due to the worsening economic outlook and increasing cost of living pressures on the UK consumer.”
Its shares stood at 9.12p on Monday lunchtime, significantly down on last night’s close of 27.50p. In July, musicMagpie posted a dip in interim revenues, falling to £71.3m from £72.8m a year previously, and a £1m loss, which it blamed on “squeezed” customer wallets, though it said it remained optimistic in the longer term.
