musicMagpie plc

("musicMagpie", or "the Group")

FULL YEAR RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2023

Margin improvement and overhead reduction delivers 15.4% increase in EBITDA

musicMagpie, a circular economy pioneer specialising in refurbished consumer technology, disc media and books in both the UK and US, announces its audited full year results for the year ended 30 November 2023 (“FY23”).

Financial and Operational highlights

• Adjusted EBITDA up 15.4% to £7.5m (2022: £6.5m) driven by tight control of margins and costs 
• Consumer Technology revenue of £95.4m (2022: £96.6m), representing 70% of Group revenue
• Increase in gross margin to 27.7% (2022: 26.3%) with continued focus on margin expansion
• Consumer Technology gross profit increased 15.8% from £20.2m to £23.4m
• Cash generative before investing and financing activities with net cash from operations of £8.1m (2022: £6.2m)
• £30m revolving credit facility with HSBC UK and NatWest committed until July 2026
• Year-end net debt of £13.1m (2022: £7.9m) following investment in rental assets  
• Rental book provides recurring revenues, with year-end active renters contributing approximately £3.6m of committed revenue into 2024 and assets with a FY23 year end balance sheet value of £7.2m (2022: £6.6m) 
• Active subscribers to device rental service increased to 37,100 (2022: 30,500) 
• Overheads reduced year on year with additional cost and headcount savings implemented post-year end

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.

Q1 trading and outlook:

The Group finished the 2023 financial year with a record Black Friday period which contributed to a 15.4% increase in EBITDA for FY23.   Q1 FY24 has recently closed and trading was in line with management’s expectations.  This positive start to the new financial year, combined with the recent changes made in the US to the Group’s Consumer Technology buying strategy and operations, cost reduction exercises in the UK and lower investment levels into our Rental offering, give the Board confidence in the Group’s FY24 and medium-term prospects.

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

“Following a successful end to FY23 we are pleased with FY24’s Q1 performance.  Having recently made changes to our US Consumer Technology buying strategy and operations, and implemented further cost savings in the UK, we believe that musicMagpie is well positioned for the remainder of the year.  We expect second-use markets to continue to grow which will complement our strategy of unlocking a ‘world of inventory’ from consumers homes and providing them with a solution that is ‘smart for you, smart for the planet’ across of our existing product categories and potential new product categories.  As such we remain confident in musicMagpie’s future prospects.”

- Ends –

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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 FY23. In addition, the Group re-sells approximately 8.4m books and disc media each year that could have ended up as waste. 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 has 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 payment. 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 almost 285,000 reviews, and is honoured to have won Best Refurbished in the Uswitch Telecoms Awards 2023 as well as Best Online Retailer and Best Secondary Market Provider at the Mobile News Awards 2023.

For further information please visit: www.musicmagpieplc.com