musicMagpie PLC (AIM:MMAG) shares failed to hit the right tune on Wednesday falling 16% after it cautioned that the start of the new financial year had been challenged by the well-publicised postal strikes, in addition to the tough consumer environment and continuing macroeconomic uncertainty.
In a statement, musicMagpie chief executive Steve Oliver said: “While the short-term outlook continues to be challenging, we believe our ability to help consumers raise cash and save money positions us well for resilient trading.”
The update came alongside full-year results to the year ended November 30, 2022, which showed a 14% fall in gross profit to £38.1mln from £44.4mln although losses before tax narrowed to £1.5mln from £14.8mln. Revenue was little changed at £145.3mln.
Active subscribers to device rental service increased to 30,500 at the year-end, up from 13,500 in 2021, and were 36,000 by the end of February 2023.
Consumer Technology revenue rose 12.2% to £96.6mln, but gross margin fell to 26.3% from 30.4%.