MusicMagpie has seen its profits fall by 14% from £44m to £38m in FY22 despite record sales on the week of Black Friday.
Moreover, the company more than doubled its active rental subscribers to 30,500 up from 13,500 in 2021.
Its revenue from consumer technology was up 12.2% to £96.6m compared with £86.1m in 2021 representing 66% of group revenue.
Despite all this the company still saw a 0.2% drop in revenues, from £145.6m to £145.3m. However, the company’s losses before tax decreased to £1.5m down from £14.8m in 2021.
Steve Oliver, CEO and co-founder, said: “In common with many consumer-facing businesses, this has been a tough year for MusicMagpie in the face of a rapidly changing macroeconomic environment. However, against this backdrop I am delighted with the performance of our core consumer technology business, which grew by over 12% and now accounts for nearly 70% of our total revenue.
“We achieved a huge amount in the year, from completing the roll-out of our SMARTDrop kiosks with Asda, significantly growing our consumer rental subscriber base, to adding our products to both Back Market and Walmart and launching our consumer tech rental service for corporates.”
He added: “As of 28 February, we had 36,000 active renters on our books, and recently launched a 24-month rental contract which we believe will be even more attractive to customers in the current economic climate.
“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. In the longer term, we remain very confident in MusicMagpie’s future prospects – and especially those of our rental business.”
