Music Magpie has credited record Black Friday sales for a boost in underlying earnings in its pre-close trading update to November 30.
The trade-in retailer said it expects EBITDA to rise 15.4% to £7.5m for the year, up from £6.5m.
Sales are now expected to fall nearly 5% to £136.6m, with a record Black Friday period helping to off-set a softer first half.
The retailer said consumer technology revenues were up 7.5% year-on-year in its second half, and came in at £95.4m for the year compared to a previous £96.6m.
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Music Magpie’s rental subscribers grew by 21% in the year, while total rental sales for the period rose 57%.
The board said it was encouraged by its second-half performance and remained confident in its strategy and medium-term prospects, despite a challenging consumer environment and inflationary pressures.
Music Magpie CEO and co-founder Steve Oliver said: “We are pleased with the performance of the group in the second half of the year, and are delighted that our focus on profits and cash has delivered significant EBITDA growth.
“Our strategy of proactively managing the number of active rental subscribers has also helped in this regard and will support our short-term objectives on profits and cash into 2024, bolstered by an enhanced buy now pay later offering”.
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