August 12, 2022

MusicMagpie shares have plummeted after the group posted a loss for its first 12 months of buying and selling after changing into a public firm.

The Stockport-based group fell to a pre-tax lack of almost £15million throughout its newest monetary 12 months, as turnover slipped beneath £150million, in contrast a revenue of slightly below £7million in 2020.

On an adjusted foundation, the corporate’s pre-tax income fell from £9.2million to £7.9million. 

In cost: Steve Oliver is the boss and founding father of MusicMagpie

MusicMagpie shares, that are listed on AIM, had been down 47.62 per cent or 77.39p to 85.11p simply earlier than 11.45am.  

The group stated the drop in turnover was ‘consistent with administration expectations because of enterprise normalisation in FY21 following the primary 12 months of the pandemic in FY20’.

It stated client expertise turnover jumped by 3.1 per cent to £86.1million, with its UK arm growing by 6.1 per cent to £71.2million. 

However MusicMagpie stated entered the brand new monetary 12 months with confidence following a report Black Friday gross sales interval in each the UK and US.

‘Our rental subscription service has continued to develop via Q1, nevertheless consistent with present client traits, we’ve seen a moderation of outright gross sales and trade-in volumes in client tech,’ it added.

Boss Steve Oliver stated that it had been a landmark 12 months for the agency in its first on the AIM market. 

He added: ‘We’ve got delivered sturdy operational and strategic progress in our first 12 months as a listed firm, and have achieved so whereas staying true to our clear environmental and social focus and our long-standing “sensible for you, sensible for the planet” ethos.

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‘Through the 12 months, we gave a “second-life” to over 400,000 expertise merchandise, in addition to 2,500 tonnes of disc media and books. This helped to save lots of over 50,000 tonnes of CO2, which is the equal to offering heating for over 18,000 houses.’

Russell Pointon, a director at Edison Group, stated: ‘With respect to present buying and selling, administration factors to continued sturdy progress in leases (to c 19k subs by finish of February) and a moderation of outright gross sales in client expertise with larger gross sales worth and decrease volumes, which results in expectations that outright Expertise FY22 gross margin will probably be c 4 share factors decrease than FY21. 

‘Elsewhere, Disk Media has carried out consistent with administration expectations and Books is consistent with H221, implying down versus the beginning of FY21 given the comparative benefitted from Covid.

‘The assertion factors to many not too long ago launched initiatives that administration believes will assist stimulate future progress together with company recycling and system leases.’