Music Magpie benefits from margin improvement and overhead reduction
Music Magpie grew its adjusted EBITDA by 15.4% to £7.5 million in the year to 30 November after it benefited from tight control of margins and costs.
However, the consumer tech reseller saw its revenue decline to £136.6 million from £145.3 million in the previous year after sales dipped in both the consumer technology and categories.
Music Magpie posted a pre-tax loss of £6.8 million in the period compared to a prior loss of £1.5 million, although gross profit in consumer technology climbed by 15.8% to £23.4 million.
Giving an update on current trading, the retailer said it had made a positive start to the new financial year with sales in line with management’s expectations.
Steve Oliver (pictured), chief executive and co-founder of Music Magpie, said: “Following a successful end to FY23 we are pleased with FY24’s Q1 performance. Having recently made changes to our US consumer technology buying strategy and operations, and implemented further cost savings in the UK, we believe that Music Magpie is well positioned for the remainder of the year.
“We expect second-use markets to continue to grow which will complement our strategy of unlocking a ‘world of inventory’ from consumers homes and providing them with a solution that is ‘smart for you, smart for the planet’ across of our existing product categories and potential new product categories. As such we remain confident in Music Magpie’s future prospects.”
