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Reasonable set of results with improving margins and cost reductions. This is one for the bottom draw as no newsflow expected for a while unless buyout talks start again? JMO. 😉
Also massive opportunity to tap into the vinyl renaissance if they can sort the p&p dilemma.
Agree. Huge arbitrage opportunity, tech in the states is not only far more abundant (obviously) but is much cheaper to buy out there and why I think other buyers (other than just BT) will be sniffing around. Combine that with a network operators ability to network unlock devices in a cost efficient manner and you can see the appeal of MMAG. Just need deep(er) pockets to build the brand out there.
Fair review. Looks like they're pivoting to BNPL, with rental remaining at 5-10% of overall sales.
Some other good things I can see though:
•Utilising AI for device grading to improve productivity
•Opportunity to arbitrage ASPs between US and UK, MMAG is uniquely positioned to import in this way
•Books making up an increasing proportion of physical segment, which are much more resilient than DVDs and games.
The results are a bit mixed to be honest.
On the downside, the income from physical media is declining low term, and year on year decline on tecchnology. It looks like the rental business hasnt really worked. Reading between the lines, they have a problem of bad credit worthiness. As a result there is no clearly identifiable growth, and no real discussion where growth is going to come from.
On the upside, they are focussing on reducing costs so as to improve profit margins.
I would call this a year of consolidation, with some doubt as to where growth is going to come from, although I may have missed something
Yeah I saw it but it disappeared which is strange :S
At £14m net debt, enterprise value is just £24m right now, or 3.5x EBITDA that is growing.
There's a disconnect here, even for London, which anticipate resolving one way or another.
WHich analysis are you talking about @theAccountant?
I thought i posted on here this morning but it has disappeared? No idea why - I just posted two paragraphs from todays RNS and said that I thought it was prices to fail - but IMO it will not fail
Or are you talking about something esle?
Nothing worse than expected. Cash is king and all that though. £6m more debt against which incremental revenue needs to be attributed … or it’s the bad kind of debt that becomes a black hole. Personally I think they will get the ship pointing in the right direction again.
Hopefully we will hear about the process by Easter.
MusicMagpie [LON:MMAG] has issued full year results this morning for the 12 months to 30th November, noting margin improvements and overhead reductions combining to bump EBITDA some 15% higher. That positive momentum, coming off a record Black Friday, has been carried into the new trading year and management are optimistic that the “second-use” market will continue to grow. It certainly resonates both with the cost of living situation and the desire to re-use or recycle.
Ps - not sure where @HedgeHogarth’s analysis has gone
Really positive results, particularly bearing in mind the economic climate. Very happy to see the pragmatic debt management and growth of profit. The proportion of debt that is not tied to inventory is minuscule compared to the revenues and scale of the business. Plus the shift to consumer tech is being handled brilliantly which is setting the business up for the long term future. Well done magpies.
Likewise, better than expected supported by strong confidence for this fiscal year.
Good luck all.
Results out looks good to me
imo
I assume that the directors wouldn't lose out even if they previusly bought all their shares at 21p. They could just delist the company and then buy it back for let's say a fiver, they would then own 100% of the company with no other shareholders having any say in matters, maybe that's their cunning plan all along? JMO Adyor!
Since 2021 by my calculations the directors have bought over 3.6m shares at a price of £0.21 so I’d like to think they wouldn’t want to sell out for any less than that plus they have grant of options at £0.45 so I’d like to think that plays into any decision making!
Can we all agree to vote against anything sub-30 if this becomes the case?
A delist needs 75% shareholder approval. Doubt they could get that. MBO/Equity house lead exit is the real option. Trailing averages will be in their favour imminently for that to become quite a nice solution for them.
What’s going on with the three single share purchases today? Is that a requirement to generate an RNS or something?
I dunno chief, I just asked if the results would be due this week ;)
What are you guys on about, in 2022 the results came out on the 2nd of March, 2023 it came out the 8th of March. The day the results are published is never consistent but the month is. I wouldn’t over think it. possibly be published tomorrow or Thursday. As they seem to prefer Tuesdays and Thursdays but imo the date they are published on is irrelevant and can be affect by a number of different reasons that have nothing to do with the underlying business.
They're still in offer period. I'm expecting to hear some update on that in the final results. Regardless, if they were going to delist, then there would have to be announcements to that effect, at which point, I'll be getting the Frank Boff outta here.
Last year released 8 march
Looks like it could go way of Loopup delist go private raise cash and leave us selling in tge market at 4p???
Any ideas
Final results due this week?
We don't know the percentage of visitors are buyers or sellers and how this changes month on month.
For example, I assume more buyers in Nov/Dec and more sellers Jan/Feb.
What would people prefer?
Sellers - So MMAG control more supply, more debt(investment)?
Buyers - So MMAG make more cash(mrr/are)?
I post pretty much every month about number of website visits. Gives a good pulse on the business. Didn’t post an opinion just the estimated numbers so everyone can interpret them how they like. February is naturally a slow month like you have stated, everyone’s always abit broke from the Christmas and new years spending, and January has a naturally uptick from promotional discount sale. My post wasn’t fear monger or trying to flag anything just a copy and past from similar web. so jump off that high horse xoxo