// MusicMagpie reports a revenue of £72.8m, up from £71.1m
// The retailer said it is in line with expectations & is on track to deliver profits & sales growth for the full financial year
Music Magpie has reported strong growth in profits and sales following its recent float on London’s junior market in April, which raised £15 million.
The electricals retailer’s board said it “remains confident the business is well positioned for future profit growth” despite the newly-listed company falling to a pre-tax loss of £17.7 million during the first half of its financial year.
The Stockport-based business reported the figure for the six months to May 31, 2021, which compares to a profit of £2.5 million during the same period in 2020.
However, on an adjusted basis, the business achieved a pre-tax profit of £4 million for the half year, a rise from £3.3 million, and its adjusted EBITDA went from £5.5 million to £6.2 million.
Music Magpie also reported a revenue of £72.8 million, up from £71.1 million and said its strong results had been driven by “strong early progress” in its smartphone rental subscription service.
The programme, which was launched in October 2020 now has over 7,500 customers and generates over £2.3 million in income.
In a statement to the London Stock Exchange, the retailer said its UK revenue rose 6.6 per cent to £58.1 million, driven by “increasing consumer adoption of circular economy models” along with a growing consumer trend to buy goods and services from brands “with strong ESG credentials”.
Music Magpie chief executive Steve Oliver said: “This has been a landmark period for musicMagpie, and we are very pleased with the performance of the business as it has adapted quickly to life as a public company,”
“We are seeing strong and growing demand for our unique circular economy model, as consumers continue to realise the benefits of buying and renting refurbished consumer technology products.
“In addition, there is a growing awareness of the rising problem of e-waste, as illustrated by the fantastic reaction to our ‘Mount Recyclemore’ sculpture at the recent G7 summit.
“We are now seeing more people than ever before looking to recycle their old gadgets whilst freeing up cash and decluttering their lives in the process.
“These trends, combined with the launch of our exciting new mobile phone rental subscription service, mean that we continue to have a high degree of confidence in the future prospects of Music Magpie.”