Music Magpie has reported a decline in overall revenue and profit for the year ending November 30, 2023.

The retailer recorded a year-on-year drop in revenue from £145.3m to £136.6m.

Overall gross profit fell slightly from £38.1m to £37.9m.

Adjusted EBITDA was up 15.4% to £7.5m, driven by “tight control of margins and costs”.

Consumer technology gross profit increased 15.8% from £20.2m to £23.4m. Active subscribers to its device rental service increased to 37,100 from 30,500 during the same period.

The group said it had a “positive” start to the new financial year and the board has confidence in Music Magpies “FY24 and medium-term prospects” due to its recent changes made to its consumer technology buying strategy operations in the US, cost reduction exercises in the UK and lower investment levels in its rental offering.

Music Magpie chief executive and co-founder Steve Oliver said: “Following a successful end to FY23 we are pleased with FY24’s Q1 performance. 

“Having recently made changes to our US consumer technology buying strategy and operations, and implemented further cost savings in the UK, we believe that Music Magpie is well positioned for the remainder of the year. 

“We expect second-use markets to continue to grow which will complement our strategy of unlocking a ‘world of inventory’ from consumers’ homes and providing them with a solution that is ‘smart for you, smart for the planet’ across our existing product categories and potential new product categories. As such we remain confident in Music Magpie’s future prospects.”