REG - musicMagpie plc - AGM Statement

MusicmagpieAnnouncement

22/05/2024 07:00

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RNS Number : 3694P  musicMagpie plc  22 May 2024

 

22 May 2024

musicMagpie plc

("musicMagpie", or "the Group")

AGM Statement

 

 

musicMagpie, a circular economy pioneer specialising in refurbished consumer
technology, disc media and books in both the UK and US, provides an update in
advance of the Annual General Meeting to be held at 08:30 am today.

As communicated at the time of the Group's FY23 financial results on 13 March
2024, the new financial year started positively following a record Black
Friday period in November 2023.  Subsequent Q2 trading has been broadly in
line with management's expectations and has benefitted from cost control and
lower overheads.

The recent changes in our US Consumer Technology operation, to make the
business a sourcing function for the UK, where devices can be sold more
profitably, are now fully embedded and the US is providing a regular supply of
devices for sale. This strategy change, combined with a competitive UK market,
is delivering lower Group revenues, but a strong focus on profitability is
helping to support performance and gives the Board confidence in the Group's
medium-term prospects.

The Rental offering is being managed to balance the opportunity cost of
immediate profits from an outright sale and the cash investment required in
rented devices, and rental income for the current year to date is slightly
ahead of the same period in 2023.  The decision to segment the rental
offering to higher credit rated customers has now been operating for almost 12
months and the rental book is predominantly composed of higher credit rated
individuals.

Sales of Disk Media and Books have declined modestly at their predicted rates
and the Company continues to manage this segment for cash. Gross margins for
the segment remain robust.

Net debt remains at similar levels to the same period in 2023.

The Company recently introduced the strategy of unlocking a 'world of
inventory' from people's homes and is expected to launch certain new product
categories shortly.

musicMagpie plc has been in an offer period since 27 November 2023 during
which time various conversations have taken place with interested parties.
Several discussions remain ongoing and as such the Company remains in an offer
period.  There can be no certainty that any offer for the Company will be
made, nor as to the terms of any such offer. The Panel Executive has granted a
dispensation from the requirements of Rule 2.4(a) and Rule 2.4(b) of the
Takeover Code such that the Company is not required to identify any potential
offeror with which the Company is in talks, or from which an approach has been
received.

The Board is focused on improving profitability and as second-use markets
continue to grow, remains confident that the ongoing work across the business
and the strategy to unlock inventory in people's homes, positions musicMagpie
well for the future.

 

 

 

 

- Ends -

Enquiries

 musicMagpie plc                               Tel: +44 (0) 870 479 2705

 Steve Oliver, CEO

 Ian Storey, COO
 Matthew Fowler, CFO

 Shore Capital (Nominated Adviser and Broker)  Tel: +44 (0) 20 7408 4090
 Mark Percy
 Malachy McEntyre
 Daniel Bush
 Rachel Goldstein

 Powerscourt (Financial Public Relations)      Tel: +44 (0) 20 7250 1446

 Rob Greening

 Sam Austrums

 Oliver Banks

 

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 over 290,000 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
(https://url.avanan.click/v2/___http:/www.musicmagpieplc.com/___.YXAxZTpzaG9yZWNhcDphOm86ZTJjMDAwODJiY2RiNjcwZjkwYTlkZDNjZGIwZGVjYzY6Njo1NWQzOmVhZjM0MGU4YzM0YjExMDIyZDk0OThjNDg1N2VlZDE2NTk4YjY0YmYwYWYzYWQ3MjUyZWZkNzQyODAyZjc2Mzc6cDpG)

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