MusicMagpie banks on Black Friday after "challenging" first half

28th Jun 2024 08:59

(Sharecast News) - Shares in MusicMagpie tumbled on Friday after a "challenging" market weighed heavily on revenues and earnings.

The AIM-listed firm, a specialist in refurbishing consumer technology, said revenues in the six months to 31 May fell to £53.9m from £61.9m a year previously.

Within that, UK consumer technology outright sales were largely flat, at £28.7m, but they fell sharply in the US, to £1.6m from £8.5m.

Disc media and book sales fell nearly 6% at £19.7m, although MusicMagpie said that was a "significant" reduction on previous declines.

Looking to the rest of the year, MusicMagpie noted that second half included Black Friday, traditionally its strongest trading period. But it also acknowledged that current trading conditions remained "challenging".

By 0945 BST, shares in MusicMagpie had plunged 20% at 5.8p.

Steve Oliver, chief executive, said: "Amid an increasingly competitive environment for second-use technology, and with consumers continuing to feel the squeeze on their wallets, the market has undoubtedly been challenging.

"We have been proactive in delivering savings to our cost base and right-sizing our business. Combined with our efforts to refine and improve the way in which we buy, sell and rent, our business is now in a stronger position and better able to capitalise on the continued growth of second-use markets."

MusicMagpie entered into potential takeover talks last November with BT Group. The telecoms group eventually pulled out of takeover negotiations, but MusicMagpie said several discussions remained ongoing with various interested parties.