Music Magpie has credited “strong momentum” for its first-half performance as it traded in line with expectations and looks forward to the “seasonally important” second half of the year.
Music Magpie posted a 7.7% jump in EBITDA year on year to reach £2.8m for the six months to May 31, 2023, despite a “challenging start” to the year.
Despite this, the electricals reseller reported group revenue of £61.9m in its first half, down from £71.3m in the same period last year.
Music Magpie said in a statement that it had been a “challenging start” to the first half of the year, which it attributed to postal strikes and “low consumer confidence”, but that trading performance “strengthened” from February onwards.
In terms of outlook, Music Magpie said that despite “challenging” trading conditions, it expects the strong momentum seen in its second quarter to continue and the board is “confident” it will meet its full-year expectations.
Chief executive Steve Oliver said: “After a challenging first quarter, I am pleased with the performance of the business during Q2 and the momentum that has been carried over into H2, which is traditionally the seasonally more important half for musicMagpie.
“By focusing on ‘buying and selling for more margin’, which includes sourcing more products directly from consumers and increasing the proportion of sales made through the Music Magpie store, we have delivered a strong improvement in consumer technology gross profit.
“Looking ahead, we have a clear plan for our rental business and for our enhanced buy now, pay later offering, which should drive sales and make our offering even more attractive to consumers looking to save cash.
“Despite the tough consumer environment, we expect consumers to increasingly look to the refurbished tech market and are confident that the business has the right strategy in place for future profit growth.”
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