Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
MusicMagpie FY pre-tax losses widen, reports strong Q1 trading
(Sharecast News) - Online retailer MusicMagpie said on Wednesday that pre-tax losses had widened in the 12 months ended 30 November 2023 but said it "remains confident" about future prospects following strong trading in the first quarter of the new trading year. MusicMagpie said pre-tax losses widened from £1.5m to £6.8m as it noted it had become "increasingly difficult" to qualify for UK R&D tax credits from which it had historically benefitted, while revenues decreased from £145.3m to £136.6m amid a "tough consumer macro environment".
On the other hand, adjusted underlying earnings rose from £6.5m to £7.5m, driven by "tight control" of margins and costs, while gross margins expanded from 26.3% to 27.7% as the firm continued to focus on margin expansion.
The AIM-listed group added that year-end net debt had surged from £7.9m to £13.1m following investments in rental assets, with year-end active renters contributing approximately £3.6m of committed revenue into 2024 and assets with a FY23 year-end balance sheet value of £7.2m.
MusicMagpie added that Q1 trading was in line with management's expectations, stating that its "positive start" to the new financial year, combined with recent changes made to its US buying strategy and operations, cost reduction exercises in the UK, and lower investment levels into its rental offering, gave it confidence in its FY24 and medium-term prospects.
As of 1000 GMT, MusicMagpie shares were down 4.11% at 8.63p.
Reporting by Iain Gilbert at Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.