musicMagpie PLC on Friday said weaker sales performance in the first half was somewhat mitigated by efforts to reduce costs.

The Stockport, England-based circular economy company specialises in refurbished consumer technology, books, and disc media.

In the six months that ended May 31, pretax loss narrowed to £3.0 million from £3.2 million a year prior.

musicMagpie shares were down 20% to 5.80 pence each in London on Friday morning.

Revenue declined 13% to £53.8 million from £61.9 million, meanwhile, total operating expenses fell 15% to £17.6 million from £20.8 million.

Cost reduction measures successfully reduced overheads by £2.4 million in the first half compared to the previous year.

Borrowings remained largely unchanged at £18.4 million, and the levels of cash and cash equivalents held by the company fell 3.8% to £4.6 million from £4.8 million.

Chief Executive Officer Steve Oliver said: ‘Amidst an increasingly competitive environment for second-use technology, and with consumers continuing to feel the squeeze on their wallets, the market has undoubtedly been challenging.

‘We have been proactive in delivering savings to our cost base and right sizing our business. Combined with our efforts to refine and improve the way in which we buy, sell, and rent, our business is now in a stronger position and better able to capitalise on the continued growth of second-use markets. We have recently launched the buying of branded fashion items on the musicMagpie platform and intend to continue broadening our offering’.

Looking ahead, management expects the macroeconomic challenges to continue into the second half. However, historically the latter half of the year has proved to be when the company earns the majority of its full year profit with the period including events such as Black Friday.

The board said the company will continue to focus on improving profitability and introducing further cost saving measures.

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