Sunday, June 23, 2024

Margin improvement and overhead reduction benefit Music Magpie

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Music Magpie, a consumer tech reseller, reported a 15.4% growth in adjusted EBITDA to £7.5 million in the year ending on 30 November. This increase was attributed to tight control of margins and costs. Despite the positive EBITDA growth, the company experienced a drop in revenue from £145.3 million to £136.6 million, as sales decreased in both consumer technology and other categories.

The company posted a pre-tax loss of £6.8 million compared to a prior loss of £1.5 million, however, the gross profit in consumer technology rose by 15.8% to £23.4 million. Music Magpie’s chief executive and co-founder, Steve Oliver, expressed optimism about the future, stating that the company had a strong start to the new financial year with sales meeting expectations.

Oliver highlighted recent changes in the US consumer technology buying strategy, as well as cost-saving initiatives in the UK. He emphasized the importance of the second-use market and the company’s focus on sustainability, stating that Music Magpie is well positioned for success in the coming year. The company remains confident in its future prospects and is committed to providing smart solutions for both consumers and the planet.

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