musicMagpie plc

("musicMagpie", or "the Group")

FULL YEAR RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2022

Consumer Technology revenue growth of 12.2% and rental subscribers up to 36,000 at 28 February 2023

musicMagpie, a circular economy pioneer specialising in refurbished consumer technology and disc media in both the UK and US, announces its audited full year results for the year ended 30 November 2022 (“FY22”).

Operational highlights

• Active subscribers to device rental service increased to 30,500 at year end (2021: 13,500) and 36,000 at 28 February 2023
• Rental book provides recurring revenues, with year-end active renters providing c£3.1m of committed revenue into FY23
• 24 month rental contracts launched post period end
• Magpie Circular offering extended in October 2022 with the launch of corporate renting, and  Stagecoach as its first customer
• SMARTDrop kiosk programme completed with kiosks installed across c290 Asda stores in the UK with over £10m paid out to date and with further plans to install in other high footfall areas during 2023
• The Group closed its FY22 financial year with a record Black Friday week  
• Expanded third party platforms to four with Back Market added in May 2022 and Walmart post year end (adding to long-standing relationships with Amazon and eBay)

Financial highlights

• Consumer Technology revenue up 12.2% to £96.6m (2021: £86.1m), representing 66% of Group revenue
• Gross margin of 26.3% (2021: 30.4%) with consistency across H1 and H2
• Net cash from operations £6.2m (2021: £2.6m); cash generative before investing activities
• Committed three-year £30m revolving credit facility with HSBC UK and Natwest entered in July 2022 to help drive future Rental growth
• Net Debt of £7.9m (2021: £1.8m cash) following key investment in rental assets

Notes
1   Adjusted EBITDA is a non-GAAP measure and has been calculated as earnings before interest, taxation, depreciation, amortisation, equity-settled share-based payments and other non-underlying items.
2 H1 2021 benefitted from Covid related tailwinds

Q1 trading and outlook:

Following on from the record Black Friday close to FY22, the start of the new financial year saw the Group having to navigate through the challenges of the well-publicised postal strikes, in addition to the tough consumer environment and continuing macroeconomic uncertainty.  Looking beyond the first quarter of the Group’s financial year, which traditionally has a low contribution to the full year performance, whilst the economic outlook remains unpredictable the Board remains confident in the Group's strategy and in its medium-term growth prospects, underpinned by the growing and differentiated rental proposition.

Commenting on the results, Steve Oliver, Chief Executive Officer & Co-Founder of musicMagpie, said:

“In common with many consumer-facing businesses, this has been a tough year for musicMagpie in the face of a rapidly changing macroeconomic environment. However, against this backdrop I am delighted with the performance of our core Consumer Technology business, which grew by over 12% and now accounts for nearly 70% of our total revenue. We achieved a huge amount in the year, from completing the roll-out of our SMARTDrop kiosks with Asda, significantly growing our consumer rental subscriber base, to adding our products to both Back Market and Walmart and launching our consumer tech rental service for corporates. 

Our rental subscription service for phones, tablets and other products has continued to grow strongly as both consumers and businesses alike have started to recognise the outstanding value and flexibility that it offers. As of 28 February, we had 36,000 active renters on our books, and recently launched a 24-month rental contact which we believe will be even more attractive to customers in the current economic climate. 

While the short-term outlook continues to be challenging, we believe our ability to help consumers raise cash and save money positions us well for resilient trading. In the longer term, we remain very confident in musicMagpie’s future prospects – and especially those of our rental business.”

- Ends -

Enquiries

musicMagpie plc Steve Oliver, CEO Ian Storey, COO     Matthew Fowler, CFO	Tel: +44 (0) 870 479 2705
Shore Capital (Nominated Adviser and Broker)   Mark Percy     Malachy McEntyre     Daniel Bush     John More	Tel: +44 (0) 20 7408 4090
Powerscourt (Financial Public Relations) Rob Greening Genevieve Ryan  Sam Austrums	Tel: +44 (0) 20 7250 1446

Notes to Editors

About musicMagpie plc

Operating through two trusted brands – musicMagpie in the UK and decluttr in the US – musicMagpie’s core strategy is simple: to provide consumers with a smart, sustainable and trusted way to buy, rent and sell refurbished consumer technology and physical media products with sustainability running to the very heart of its operations. Founded in 2007, the Group has an established presence in the UK, with operations in Stockport, Greater Manchester, and in the US in Atlanta, Georgia.
 
musicMagpie has a strong environmental and social focus, as demonstrated by its trademarked ‘smart for you, smart for the planet’ ethos. Nearly 400,000 consumer technology products were resold in FY22. In addition, the Group re-sells approximately 10m books and disc media each year that could have ended up as waste. During 2022, musicMagpie's UK consumer tech and disc media customers, along with its trade partners, helped to save over 43,000 tonnes of CO2 by buying, selling and renting with the Group - an amount equivalent to providing heating for over 16,000 homes, or powering more than 50,000 flights from London to New York.  The Group has been given the London Stock Exchange’s Green Economy Mark in recognition of its contribution to the global green economy.
 
When selling to musicMagpie, the customer is offered a fixed valuation via the website, provided with free logistics to ship the products and (subject to it being ‘as described’) receives payment for their product on the day of arrival at the Group’s warehouse. The Group also recently partnered with Asda to give customers the option of using its SMARTDrop Kiosks in store for a fast and easy way to recycle phones for instant cash. Customers purchasing from musicMagpie receive branded refurbished product for a fraction of the price of buying new.
 
The Group has the highest number of seller reviews on both Amazon and eBay and has consistently achieved extremely positive feedback scores. The Group also has a 4.4* rating on UK Trustpilot with over 252,000 reviews. 

For further information please visit: www.musicmagpieplc.com