Music Magpie’s shares plummet after downgrading rebound hopes
Music Magpie’s shares have nosedived a whopping 68 per cent on the FTSE AIM All-Share, after the company downgraded its performance expectations in the second half of its financial year.
The online electronics retailer still expects its second half profitability will be a substantial improvement on the first half of the year, but it warned that the performance of consumer technology has been weaker than anticipated and margin pressures have persisted.
The consumer technology sector makes up around two thirds of the group’s revenue.
It also argued that cautious consumer behaviour in August and September to date has seen slower growth of outright sales on the Music Magpie store, with the expansion of other sales channels.
Accordingly, the group now expects that revenue generated in the second half will show lower growth over the first half than it previously expected and that profitability for the year to November 2022.