musicMagpie PLC reported earnings growth in its first half and reiterated its forecasts as the group delivered its first set of results since listing in April.
In its results for the six months to May 31, the used electronics reseller reported an adjusted pre-tax profit of £4mln, up 22.8% year-on-year, while revenues rose 2.3% to £72.8mln.
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The company highlighted that its core UK market had reported 6.6% revenue growth to £58.1mln amid what it said was “increasing consumer adoption of circular economy models” and growing interest in brands with “strong ESG credentials”.
musicMagpie also said it had seen “strong early progress” with its new smartphone rental subscription service, launched in October 2020.
Looking ahead, the group said trading is continuing in line with management expectations for the full year and as a result it remains “well positioned for future profit growth” and that its 2021 adjusted earnings will be in line with expectations.
"This has been a landmark period for musicMagpie, and we are very pleased with the performance of the business as it has adapted quickly to life as a public company. We are seeing strong and growing demand for our unique circular economy model, as consumers continue to realise the benefits of buying and renting refurbished consumer technology products”, musicMagpie co-founder and chief executive Steve Oliver said in a statement.
“In addition, there is a growing awareness of the rising problem of e-waste, as illustrated by the fantastic reaction to our 'Mount Recyclemore' sculpture at the recent G7 summit. We are now seeing more people than ever before looking to recycle their old gadgets whilst freeing up cash and decluttering their lives in the process. These trends, combined with the launch of our exciting new mobile phone rental subscription service, mean that we continue to have a high degree of confidence in the future prospects of musicMagpie", he added.
Despite the solid results, the firm’s shares were weaker in mid-morning deals on Wednesday, down 1.4% at 183p.