Shares of Stockport-based musicMagpie fell as much as 20% on Thursday after it published results for the six months ended May 31, 2023, showing its loss before tax widened to £3.2 million from a £1 million loss in the same period of the prior year.

First half revenue fell to £61.9 million from £71.3 million.

musicMagpie, which allows consumers to buy, rent and sell refurbished consumer technology, also said its current trading conditions remain “challenging.”

In its outlook, musicMagpie said: “As usual, the majority of the group’s full year profits are expected in the seasonally important second half. 

“Current trading conditions remain challenging due to the prevailing macro-economic factors in the market, but the strong momentum seen in Q2 has thus far been carried into the early part of Q3 of our 2023 financial year and this combined with the focus on gross margin by continuing to buy for less and sell for more, and cost savings introduced, mean the board is confident of the group meeting its full year expectations.”

musicMagpie CEO Steve Oliver said: “After a challenging first quarter, I am pleased with the performance of the business during Q2 and the momentum that has been carried over into H2, which is traditionally the seasonally more important half for musicMagpie.

“By focusing on ‘buying and selling for more margin’, which includes sourcing more products directly from consumers and increasing the proportion of sales made through the musicMagpie store, we have delivered a strong improvement in Consumer Technology gross profit.

“Looking ahead, we have a clear plan for our rental business and for our enhanced Buy Now Pay Later offering, which should drive sales and make our offering even more attractive to consumers looking to save cash. 

“Despite the tough consumer environment, we expect consumers to increasingly look to the refurbished tech market and are confident that the business has the right strategy in place for future profit growth.”