musicMagpie expects the second-hand electronics market to continue growing after reporting strong earnings over the course of last year.
Adjusted pre-tax earnings climbed 15% to £7.5 million for the year to November, the electronics and disc media retailer reported on Wednesday.
This was thanks to tight margins and cost control, as revenue slipped 6% to £136.6 million but margins increased from 26.3% to 27.7%.
“Having recently made changes to our US Consumer Technology buying strategy and operations, and implemented further cost savings in the UK, we believe that musicMagpie is well positioned,” chief executive Steve Oliver commented.
“We expect second-use markets to continue to grow, which will complement our strategy of unlocking a 'world of inventory' from consumers’ homes,” he added.
Debt climbed from £7.9 million to £13.1 million, following investment in rental assets, such as electronic devices, with active subscribers to the service up by a fifth to 37,200 people.
musicMagpie said it was cash-generative before investing and financing, with net cash from operations sitting at £8.1 million, compared to £6.2 million in 2022.