Music Magpie trading broadly in line with expectations
Music Magpie, the refurbished consumer technology specialist, has said its second quarter trading has been broadly in line with expectations as it remains in takeover talks.
The retailer had previously said in its March full year results announcement that its new financial year had started positively following record Black Friday trading in November. In a statement ahead of its AGM today, Music Magpie said its second quarter trading had benefitted from cost control and lower overheads.
The retailer has recently made changes in its US consumer technology operation to make the business a sourcing function for the UK where devices can be sold more profitably. While the change is currently contributing to lower group revenues, Music Magpie said a strong focus on profitability is helping to support performance and is giving it confidence in its medium-term prospects.
Having been in an offer period since 27 November, Music Magpie said it has held various conversations with interested parties with several remaining ongoing, although there can be no certainty that any offer for the company will be made.
Music Magpie recently introduced a strategy of “unlocking a world of inventory” from people’s homes and is expected to launch new product categories shortly.
The retailer said: “The board is focused on improving profitability and as second-use markets continue to grow, remains confident that the ongoing work across the business and the strategy to unlock inventory in people’s homes, positions Music Magpie well for the future.”
