musicMagpie PLC (AIM:MMAG) slumped into a loss in the first half, hit by the "continuing squeeze on consumer spending".
However, the mobile phone recycling company insisted adjusted EBITDA for the full year remains in line with expectations despite an uncertain environment for consumer-facing businesses.
The company posted an adjusted loss before tax of £700,000 compared to a profit of £4mln in the 2021 comparative period.
Group revenue of £71.3mln was slightly down compared to £72.8mln previously, with the company saying growth in consumer technology largely offset the expected post-pandemic reduction in disc media and books.
Consumer technology revenue, which accounts for 65% of the group, including subscriptions, was up 15.9%, though disc media and books revenue fell 23.6%, failing to sustain the previous period’s lockdown boosts.
"Notwithstanding the challenges presented by the current macroeconomic uncertainty, we expect consumers will continue to seek ways to raise cash and save money and as a result, we are confident that the business is well positioned for future growth in the second half of 2022 and beyond," said Steve Oliver, chief executive.
musicMagpie said it has a new committed 3-year £30mln revolving credit facility with HSBC UK and NatWest to drive future rental growth.
Shares in the company slumped 9% to 45.50p in London on the news.