“Edison’s accessible and high-quality research gives us the opportunity to communicate an independent perspective of Tyman to a wide variety of potential stakeholders.”
Currency in GBP
Last close As at 28/03/2023
GBP0.26
▲ −1.10 (−4.14%)
Market capitalisation
GBP29m
musicMagpie is a circular economy pioneer in refurbished consumer technology and media in the UK and United States. It is expanding its offer into rentals of smartphones and other technology to consumers and corporates, and widening its sourcing infrastructure.
The markets for pre-owned products in MMAG’s core categories in the UK and United States were worth £9bn in FY20, of which the UK was £1.6bn and the United States was £7.1bn (source: musicMagpie’s Admission Document). According to independent third-party research commissioned by management, medium-term annual market growth rates for the product categories were forecast to be Technology 15%, Books stable/low growth and Media negative 5–10%.
Director, Consumer
Ian Storey
COO
Matthew Fowler
CFO
Steve Oliver
CEO
Forecast net debt (£m)
15.2
Forecast gearing ratio (%)
82
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (31.8) | 18.6 | (53.6) |
| Relative | (28.5) | 17.4 | (53.1) |
| 52 week high/low | 60.0p/8.9p |
musicMagpie (MMAG) delivered FY22 results in line with our expectations despite the tougher environment faced by UK consumer-facing companies. Strong revenue growth from Consumer Technology offset the decline in Disc Media and Books. The multiple initiatives to increase and improve sourcing of products and to grow its end-markets are bearing fruit, as evidenced by the growing proportion of Consumer Technology sales. Our profit expectations are broadly unchanged as we anticipate better growth in Consumer Technology offsetting the decline in Disc Media and Books. The valuation remains at a significant discount to its online peers.
| Y/E Nov | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 145.5 | 12.2 | 7.9 | 6.11 | 4.2 | 2.3 |
| 2022A | 145.3 | 6.5 | (0.9) | (0.71) | N/A | 4.9 |
| 2023E | 153.8 | 9.2 | (1.1) | (0.86) | N/A | 3.0 |
| 2024E | 165.1 | 11.5 | 0.7 | 0.50 | 51.0 | 2.4 |
