Music Magpie boosted by strong trading momentum
Music Magpie has said its first-half performance has been in line with expectations, despite postal strikes and low consumer confidence impacting trade in December and January.
The recommerce business specialising in refurbished consumer technology has reported a 7.7% uplift in EBITDA to £2.8 million for the six months to 31 May.
Following a challenging start to the period, its trading performance improved from February onwards, although revenue across the half year fell to £61.9 million from a prior £71.3 million. EBITDA in the second quarter was up 42% on the same period in the previous year.
Steve Oliver, chief executive of Music Magpie, 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 Music Magpie.
“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.”
Music Magpie said current trading conditions remain challenging, although the strong momentum experienced in its second quarter has continued into the early part of its second half. This, combined with its focus on cost savings and gross margin, means it is confident of meeting its full year expectations.
Oliver added: “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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