Half-year Report

RNS Number : 6771G

musicMagpie plc

28 July 2021

 

28 July 2021

musicMagpie plc

("musicMagpie", or "the Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2021

A period of strong financial, operational and strategic progress, underpinned by significant margin improvement

musicMagpie, a leading re-commerce business in the UK and US specialising in refurbished consumer technology, announces its unaudited interim results for the six months ended 31 May 2021.

	H1 21 £m	H1 20 £m	Change	Change (CCY 1 )
Revenue	72.8	71.1	+2.3%	+3.7%
Gross Profit	23.7	19.1	+24.1%
Gross Margin	32.6%	26.9%	+ 5.7%
Adjusted EBITDA 2	6.2	5.5	+13.5%	+14.8%
Adjusted Profit Before Tax 3	4.0	3.3	+22.8%
Adjusted Earnings per Share 4	3.48p	3.02p	+15.2%
Net Cash/(Debt) at period end	6.4	(9.6)

Notes

1 "CCY" indicates figures reported on a constant currency basis. Constant currency means that US Dollar results in the comparative period have been translated at the same exchange rate applied to current year US Dollar results.

2 Adjusted EBITDA is a non-GAAP measure and has been calculated as earnings before interest, taxation, depreciation, amortisation, equity-settled share-based payments and other non-underlying items.

3 Adjusted Profit Before Tax means profit before tax before equity-settled share-based payments and other non-underlying items, including non-underlying financial expenses.

4 Adjusted Earnings per Share is calculated on Adjusted Profit Before Tax and is given to exclude the effects of equity-settled share-based payments and other non-underlying items, all net of taxation, and is therefore considered to show the underlying performance of the Group

Financial highlights

· Revenue for the Group up 2.3% to £72.8m (H1 20: £71.1m), up 3.7% on a constant currency basis (H1 20 (CCY ¹ ): £70.2m)

o  UK revenue up 6.6% to £58.1m (H1 20: £54.5m) driven by increasing consumer adoption of circular economy models along with a growing consumer trend to buy goods and services from brands with strong ESG credentials.

· Gross profit up 24.1% to £23.7m (H1 20: £19.1m), driven by a 5.7% increase in gross margin from 26.9% to 32.8% reflecting continued focus on profitable growth.

· Adjusted EBITDA up 13.5% to £6.2m (H1 20: £5.5m), up 14.8% on a constant currency basis (H1 20 (CCY ¹ ): £5.4m).

· Net cash of £6.4m at period end with transition from net debt to net cash underpinned by £15m primary raise at IPO.

Operational highlights

· Strong early progress from the Group's innovative new smartphone rental subscription service, launched in October 2020 with over 7,500 subscriptions as at 31 May 2021.  This has led to the Group substituting firm sale revenues totalling £2.3m for the period in return for the £0.3m of subscription revenue earned, a net £2.0m, as customers have opted for rental over outright purchase of phones. As a result, consumer technology revenue growth increased by only 0.8% but there is now the potential to earn higher recurring revenues and EBITDA over the life of a device as opposed to a one-off sale.

· Launched the new SMARTDrop Kiosk concept in November: over 1,250 smartphones traded as at 31 May 2021, paying out £0.3m instantly to consumers.

o  Following a successful trial, an expanded roll-out is now planned for Asda stores across the country, with a view to ensuring 90% of the population in England will live within a 15 minute drive of a SMARTDrop Kiosk.

· New Apple products now available on the musicMagpie Store in the UK.

· US trade-in partnerships in place with Macworld and Red Pocket Mobile: potential combined customer reach of 9 million US citizens as they promote the decluttr trade-in programmes to their extensive membership.

· Successful IPO in April on the AIM market of the London Stock Exchange raising primary proceeds of £15m.

· Significant strengthening of Board with appointments of Martin Hellawell as Non-Executive Chairman, Dave Wilson as a Non-Executive Director and Chair of the Audit Committee, and Alison Littley as a Non-Executive Director, Senior Independent Director and Chair of the Remuneration Committee.

Successful continuation of environmental initiatives

· Received the London Stock Exchange's Green Economy Mark, which recognises companies that derive 50% or more of their total annual revenue from products and services that contribute to the global 'Green Economy'.

· Created the 'Mount Recyclemore' sculpture at the recent G7 summit to highlight the growing global problem of e-waste;  now relocated for the summer to the plaza at Stockport Exchange outside the Group's head office.

· The musicMagpie corporate recycling programme fully launched in February 2021, aimed at businesses looking to increase their sustainability efforts.

Current trading and outlook

· Following the progress made in H1, the Board is pleased with the continued momentum across its core consumer technology business and key strategic initiatives: smartphone rentals, SMARTDrop Kiosks and corporate recycling.

· Trading continues in line with management's expectations for the full year and the Board remains confident that the business is well positioned for future profit growth and that FY21 Adjusted EBITDA will be in line with expectations.

Commenting on the results, Steve Oliver, Chief Executive Officer and Co-Founder of musicMagpie, said:

"This has been a landmark period for musicMagpie, and we are very pleased with the performance of the business as it has adapted quickly to life as a public company.  We are seeing strong and growing demand for our unique circular economy model, as consumers continue to realise the benefits of buying and renting refurbished consumer technology products. In addition, there is a growing awareness of the rising problem of e-waste, as illustrated by the fantastic reaction to our 'Mount Recyclemore' sculpture at the recent G7 summit. We are now seeing more people than ever before looking to recycle their old gadgets whilst freeing up cash and decluttering their lives in the process.  These trends, combined with the launch of our exciting new mobile phone rental subscription service, mean that we continue to have a high degree of confidence in the future prospects of musicMagpie." 

Enquiries

musicMagpie plc Steve Oliver, CEO Ian Storey, COO	Tel: [phone]
Peel Hunt (Nominated Adviser and Joint Broker) Edward Knight Paul Gillam Nick Prowting Tom Ballard	Tel: [phone]
Shore Capital (Joint Broker) Malachy McEntyre Mark Percy Daniel Bush John More	Tel: [phone]
Powerscourt (Financial Public Relations) Rob Greening Elly Williamson Lisa Kavanagh	Tel: [phone]

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

Notes to Editors

musicMagpie is a leader in the re-commerce of consumer technology (including smartphones, tablets, consoles and wearables), disc media (including CDs, DVDs and games) and books, with sustainability running to the very heart of its operations.

Founded in 2007, the Group has an established presence in the UK, with operations in Stockport, Greater Manchester, and in the US in Atlanta, Georgia. Operating through its two trusted brands - musicMagpie in the UK and decluttr in the US, the Group's core business model is simple: to provide consumers with a smart, trusted and sustainable way to buy, rent and sell refurbished consumer technology and physical media products.

It has a strong environmental and social focus, as demonstrated by its trademarked 'smart for you, smart for the planet' ethos. Over 400,000 consumer technology products were resold to consumers in the year ended 30 November 2020 by the Group. In addition, the Directors estimate that that the Group re-sells approximately 2,500 tonnes of books and disc media each year that could have ended up as waste. As a result, the Group has received the London Stock Exchange's Green Economy Mark, which recognises companies that derive 50 per cent. or more of their total annual revenue from products and services that contribute to the global 'Green Economy'.

When selling to musicMagpie, the customer is offered a fixed valuation via the website, provided with free logistics to ship the products and (subject to it being 'as described') receives payment for their product on the day of arrival at the Group's warehouse.

Customers purchasing from musicMagpie receive branded refurbished product for a fraction of the price of buying new. All consumer technology products sold by the Group are sold with a free 12-month warranty.

The Group has the highest number of seller reviews on both Amazon and eBay and has consistently achieved extremely positive feedback scores. The Group also has a 4.7* rating on UK Trustpilot with over 190,000 reviews.

For further information please visit: www.musicmagpieplc.com/
 

INTERIM STATEMENT

We are pleased to report our interim results for FY21, which has been a period of strong financial, operational and strategic progress for musicMagpie.

STRATEGY

Operating through its two trusted brands - musicMagpie in the UK and decluttr in the US - the Group's core strategy is simple: to provide consumers with a smart, trusted and sustainable way to buy, rent and sell refurbished consumer technology and buy and sell physical media products. The market for pre-owned consumer technology and physical media is worth approximately £9 billion in the UK and US. The market is supported by a number of positive tailwinds, such as: increasing consumer acceptance of circular economy models; a growing consumer trend to purchase from brands with strong ESG credentials; rising prices for certain consumer technology products combined with slower rates of innovation; the decoupling of handsets from carrier contracts; increased smartphone ownership across a wider generational age profile; and the stimulant for further upgrade activity with the introduction of 5G handsets. Together, these factors present an exciting opportunity for musicMagpie to accelerate its growth through its Sell, Buy or Rent online model in the UK and US.

In addition to its growing core business, the Group has launched three initiatives for which it sees significant potential:

· An innovative smartphone rental subscription service in the UK, providing customers with a more affordable and flexible option than an outright purchase, as well as creating a growing recurring revenue stream.

· The SMARTDrop kiosk concept - a fast, easy and free way for sellers to recycle phones for instant cash - with kiosks now being rolled-out in ASDA stores.

· The musicMagpie corporate recycling programme service for businesses looking to recycle  equipment in a safe, secure and sustainable way whilst also generating income.

FINANCIAL PERFORMANCE REVIEW

Group revenue for the six months ended 31 May 2021 grew 2.3% to £72.8m (H1 20: £71.1m).  On a constant currency basis, revenue increased by 3.7% (H1 20 (CCY ¹ ): £70.2m).

Revenue in the Group's three main product areas of consumer technology (e.g. smartphones, tablets, consoles, wearables), disc media (e.g. CDs, DVDs, Games) and books, all increased in line with expectations.  Consumer technology revenue was up 0.8% to £39.7m (H1 20: £39.4m), with top line growth reflective of the transition of firm product sales to the rental subscription service.  Disc media revenue was up 3.2% to £28.0m (H1 20: £27.1m), and books revenue was up 10.4% to £5.1m (H1 20: £4.6m).

Rental subscription revenue included within consumer technology revenue was £0.3m, with this revenue recognised on payment of monthly subscription by consumers.  Smartphones purchased by the Group for over £1.4m had been rented to consumers by musicMagpie as at 31 May 2021.  Based on an assumption using the sales price of similar products, the Directors believe that the Group has substituted firm sale revenues totalling £2.3m for the period in return for the £0.3m of subscription revenue earned in H1 21 (a net £2.0m reducing consumer technology revenue growth by 5.1%), as consumers have opted for rental over outright purchase of phones.  As a result, consumer technology revenue growth was modest but there is now the potential to earn higher recurring revenues and EBITDA over the life of a device as opposed to a one-off sale.

On a geographical basis, in the UK, where the Group trades under the musicMagpie brand, revenue was up 6.6% to £58.1m (H1 20: £54.5m). In the US, where the Group trades under the decluttr brand, revenue was down 6.3% to $20.2m (H1 20: $21.5m) as the business continued with its strategy of focusing on profitable trading, protecting margin at the short-term expense of additional revenue expansion.  The reduction in US revenues in the six-month period to 31 May 2021 in comparison with the prior year reflects fewer purchases and hence sales from B2B purchases ($4.9m in H1 20 to $0.8m in H1 21), whilst consumer purchased product sales rose 31.4% ($6.4m in H1 20 to $8.4m in H1 21). 

Gross profit for the Group of £23.7m saw the gross margin % increase by 5.7% to 32.6% (H1 20: 26.9%) with buy and sell price focus driving margin improvement across all three product segments.  Gross margin on consumer technology increased by 4.6% to 26.1% (H1 20: 21.5%), disc media increased by 7.4% to 40.5% (H1 20: 33.1%), and books grew by 4.3% to 40.8% (H1 20: 36.5%). 

Operating Expenses, excluding depreciation, amortisation, equity-settled share-based payment non-cash expenses and other non-underlying items increased 27.7% to £17.4m (H1 20: £13.7m). This was driven by increased investment in headcount across the Group's IT development, marketing and commercial functions to ensure the Group has appropriate resources to execute its growth strategy, as well as an increase in marketing spend, in particular on TV advertising for brand building activity. 

The above resulted in a 13.5% increase (14.8% increase at Constant Currency) in Adjusted EBITDA to £6.2m (H1 20: £5.5m). 

The Group's statutory loss before tax of £17.7m (H1 20: £2.6m profit) was after taking account of £22.9m of costs (H1 20: £2.0m) associated with equity-settled share-based payments of £17.4m (H1 20: £0.2m), depreciation of property, plant and equipment of £0.7m (H1 20: £0.7m), amortisation of intangible assets of £0.7m (H1 20: £0.6m), and other non-underlying items including IPO costs totalling £4.1m (H1 20: £0.5m).  Of these costs, £18.8m (H1 20: £1.5m) were non-cash items and £21.5m were non-recurring items.

The Group generated net cash from operating activities of £2.0m (H1 20: £5.5m).  The strong trading performance of the Group alongside the £15.0m primary raise from the IPO, saw net debt of £9.6m at 31 May 2020 transition into net cash of £6.4m.  This included repayment of borrowings in the period of £10.2m.  Adjusted operating cash flow calculated as Adjusted EBITDA less movements in working capital, was £6.1m (H1 20: £6.0m) giving a high cash conversion ratio of 97.2%.

On 5 February 2021, the Group refinanced with the introduction of a £10m three year committed revolving credit facility with Silicon Valley Bank, repaying existing bank debt.  The facility was undrawn at 31 May 2021.

OPERATIONAL REVIEW

The Group has launched a range of initiatives over recent months to help drive future growth. In October 2020, musicMagpie launched an innovative mobile phone rental subscription service to give consumers a more affordable and flexible option than an outright purchase. The offering allows customers to obtain a phone without having to make an upfront payment or sign an expensive and lengthy contract. Monthly payments start at £6.99 and the agreements last for 12 months, after which customers can either upgrade to a newer model, keep the same phone for a lower fee, or return the phone and end their agreement. Renting a phone is also an effective way for consumers to reduce their carbon footprint and contribute to a circular economy in which products are refurbished, reused and recycled. The service has made strong e arly progress, with over 7,500 subscriptions as at 31 May 2021.

In November, the Group launched a trial of its new SMARTDrop Kiosk concept offering a fast, easy and free way to recycle unwanted phones for instant cash.  The SMARTDrop Kiosks allow customers to bring in their old phone, receive a valuation and get paid instantly with money transferred directly to the customers' bank or PayPal account.  As at 31 May 2021, the Group had 20 Kiosks in the trial.  To date, it has traded over 1,250 smartphones paying out £0.3m instantly to consumers.  Following this successful trial, an agreement has now been reached with Asda to increase installations with the objective that 90% of the population in England will live within a 15-minute drive of a SMARTDrop Kiosk. 

In February, musicMagpie launched a corporate technology recycling service for businesses looking to increase their sustainability efforts. The service allows businesses to recycle their unwanted company smartphones and tablets to musicMagpie for cash, which can then either go back into their business, fund upgrades, be used to reward staff, or even be donated to a charity of the company's choosing. The service also has the benefit of ensuring that all data is erased safely and securely. The service has already been used by a number of high-profile global businesses, a recent example being Deloitte. 

Post the period end, in July, musicMagpie launched new Apple products for sale on the musicMagpie Store in the UK.  

COVID-19

Much care was taken to ensure the safety and welfare of all Magpie colleagues during the pandemic; all office colleagues were safely working at home within three or four days of the 'work from home' directives being issued, whilst significant emphasis was put on the safety of our operational colleagues. Shift patterns, including staggered finishes, were altered to avoid any bottle necks within our facilities, canteens reorganised, workspace re-configured and free catering was provided for a number of months.

The Group positions itself in the value-led sector and is well placed in the event of an economic downturn as consumers seek ways both to save money and generate income.  The pandemic, and the resultant closures of physical retail outlets for a period of time during lockdown, has accelerated the consumer shift from traditional high street locations to online channels.  The Group, has benefitted from this trend with a strong growth in turnover, margin and EBITDA, as well as positive cash generation.  The Group is confident that these changes to consumer behaviour are structural and permanent.

MOUNT RECYCLEMORE

Shortly after the period end in early June, musicMagpie created the 'Mount Recyclemore' sculpture in partnership with artist Joe Rush. The giant Mount Rushmore-style sculpture of the G7 leaders' heads, made entirely of discarded electronics, appeared on a beach near to Carbis Bay during the G7 summit to coincide with discussions around how to tackle climate change and build a greener future. It was devised following musicMagpie-commissioned research showing that the G7 nations alone produce almost 15.9 million tonnes of e-waste a year, with the US (6.9m), Japan (2.6m), Germany (1.6m) and UK (1.6m) being the worst offenders.

The Mount Recyclemore activity was exceptionally well received in the Group's core markets in the UK and the US, and in the latter, it has helped to cement a number of partnership arrangements.   These include signing up Macworld (7 million active users) and Red Pocket Mobile (2 million registered customers) as trade-in partners, which will see the two organisations promote the decluttr trade-in programmes to their extensive subscriber bases.

As part of the Mount Recyclemore campaign, musicMagpie partnered with global waste management charity WasteAid. Throughout June, sellers had the option to donate the value offered by the Group to the charity whilst musicMagpie gave the charity £1 for each piece of consumer tech customers traded in with the Group. 

CHARITY SUPPORT

Following on from the successful WasteAid campaign which raised £30,000 for the charity, the Group has now partnered with the British Heart Foundation running a similar donation scheme in July. 

The Group is also a long-term supporter of City in the Community, the charity division of Manchester City FC, with an annual donation made to fund elements of their City Play programme delivering fun, free physical activity sessions in community settings and SureStart centres in the Greater Manchester area. 

In December, the Group d onated 20,000 sq. ft. of space and hundreds of volunteer days to contribute for the third year running to the Cash4Kids Mission Christmas campaign, which provided local children with over 40,000 Christmas presents in 2020.

In March, 15 of the Group's team members set off on Le Tour de Magpie, a gruelling 1,500-mile cycle covering the distance from Stockport to Moscow from the 'comfort' of their own exercise bikes at home raising £10,000 for the charity Smart Works.  Smart Works is a UK charity that dresses and coaches unemployed women in need for job interviews giving them the confidence they need to reach their full potential, secure employment and change the trajectory of their lives. 

SUSTAINABILITY

Since the inception of the business in 2007, the Group has had circularity at its heart and has been committed to being environmentally responsible.  The Group is committed to the protection of the environment; the prevention of pollution; continual environmental improvement throughout the life cycle of its products, services and business operations; and compliance with all legal and other environmental policy requirements.  The Group's Chief Sustainability Officer has continued her focus on driving initiatives in support of these and in reducing the Group's carbon footprint as it works towards being carbon neutral.   

musicMagpie's committment to the raising awareness of the problem of e-waste will continue in July with the relocation of Mount Recyclemore to the Group's hometown of Stockport where it will reside until the middle of September.   

INITIAL PUBLIC OFFERING

In April, the Group successfully completed an IPO on the AIM market of London Stock Exchange ("LSE"). The IPO attracted strong support from high quality institutional investors and was comfortably over-subscribed, with the net proceeds being used to repay existing debt facilities and fund the Group's working capital requirements, in particular the expansion of its smartphone rental proposition.  As part of the process, the Group was delighted to receive the LSE's Green Economy Mark, which recognises companies that derive 50% or more of their total annual revenue from products and services that contribute to the global 'Green Economy'.

BOARD

In tandem with the IPO, musicMagpie appointed Martin Hellawell as Non-Executive Chairman, Dave Wilson as a Non-Executive Director and Chair of the Audit Committee, and Alison Littley as a Non-Executive Director, Senior Independent Director and Chair of the Remuneration Committee.

Martin is Chairman of FTSE 250 listed Softcat plc, a leading UK provider of IT infrastructure technology and services. He previously spent 12 years as Chief Executive and Managing Director during which he led the company through a highly successful IPO and its first two years as a PLC. Martin is also Chairman of Raspberry Pi Trading Limited, a subsidiary of the Raspberry Pi Foundation, a UK-based charity that works to put the power of computing and digital making into the hands of people all over the world. He is also Senior Independent Director at Team17 PLC. 

Dave was, until June 2021, the Chief Finance Officer and Chief Operating Officer at GB Group PLC ("GBG"), the global identity data intelligence specialist. Over the 12 years he served as CFO, GBG increased its market capitalisation from c. £14.2m to c. £1.7bn today. Dave has a strong background in managing business growth, and previously held international and operational board level positions with companies including Envirofone.com, Codemasters, Fujitsu and Technology plc.

Alison is a Non-Executive Director at Xaar plc, Norcros Plc and Osborne Group Ltd and Chair of the Remuneration Committees at all three. In her executive career, Alison held a variety of senior management positions in Diageo plc and Mars Inc, and was Chief Executive Officer at Buying Solutions, an agency to HM Treasury.

DIVIDEND

In line with guidance given at the IPO, the Directors have decided to re-invest earnings of the Group to finance the development and expansion of the business in the short term.  Accordingly, it is not proposing to declare an interim dividend for the period.

However, the Board will consider commencing the payment of dividends as and when the development and profitability of the Group allows and the Board considers it commercially prudent to do so. 

GOING CONCERN

As stated in Note 2 to the condensed consolidated interim financial statements, the Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report.  Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.

CURRENT TRADING AND OUTLOOK

Since the end of H1 21, trading has continued in line with management expectations. The Directors are delighted with the rapid progress achieved since launch of the Group's smartphone rental subscription offer.  The future contracted rental stream reached £1.2m (net of VAT) as at 31 May 2021, which is continuing to build on a daily basis with on average over 50 transactions per day.  The growth of the rental proposition is anticipated to moderate short term top line consumer technology growth given reduced upfront revenues from customers opting for rental over outright purchase of phones.  However, beyond the short term, this tempering of revenue growth by rentals will give way to an expected gradual acceleration of consumer technology revenue and EBITDA growth in the UK as the incremental revenue streams of subsequent rentals come through, in addition to smartphone and other technology sales.

The Directors are also excited about the introduction of the new Apple product being made available for sale on musicMagpie Store in the UK. 

In light of the strength of performance of the SMARTDrop Kiosks during the six-month 20 store trial, an increased roll-out is now planned across the wider Asda Stores estate.  The Directors anticipate associated capital expenditure costs of approximately £2.0m over the next 12 months, which will be funded from existing cash and borrowing facilities.

The first half of the year saw disc media (38% of Group revenue in H1) and books (7% of Group revenue in H1) continue to benefit from pandemic-related restrictions and lockdowns.  The second half is expected to see sales in these categories start to return to more normalised pre-pandemic levels. This will increase the percentage of consumer technology (55% of Group revenue in H1) in the Group's sales mix. Gross margins across disc media and books are expected to remain resilient in the face of any revenue normalisation.

In the US, the Company has prioritised profitable trading in the consumer technology segment, protecting margin at the expense of additional revenue growth.  The second half is expected to see increased product availability through B2B channels and the business will actively seek to deliver more B2B purchased sales. These channels deliver a lower gross margin but provide an opportunity for 'hero' product offers to drive customer sign up and engagement.  Equally, the next six months will see the evolution of trade-in opportunities with newly signed partnerships offering sizable customer reach and the potential for significant volume growth. 

Gross margin for the Group at the start of the second half has continued on a similar trend to that seen in H1 21, and with the continued emergence of the smartphone subscription service, is expected to remain ahead of expectations mitigating any potential revenue shortfall that may result from B2B driven sales in the US. 

In summary, the Directors remain confident that the business is well positioned for future profit growth and that Adjusted EBITDA will be in line with their expectations for the full year.

Martin Hellawell  Steve Oliver

Chairman  Chief Executive Officer

Consolidated Condensed Statement of Comprehensive Income

	Note	Unaudited 6 months ended 31 May 2021   £'000	Unaudited 6 months ended 31 May 2020 £'000	Audited Year ended 30 Nov 2020 £'000
Revenue	4,5	72,772	71,105	153,350
Cost of sales		(49,023)	(51,971)	(108,566)
Gross profit	4	23,749	19,134	44,784
Operating expenses		(18,980)	(14,937)	(33,521)
Operating expenses - exceptional	6,7	(21,491)	(685)	(1,663)
Total operating expenses		(40,470)	(15,622)	(35,184)
Other operating income		19	25	49
Adjusted EBITDA*	13	6,240	5,498	13,873
Depreciation of property, plant and equipment	10	(713)	(673)	(1,300)
Amortisation of intangible assets	11	(738)	(603)	(1,261)
Equity - settled share-based payments	7	(17,379)	(190)	(381)
Other non - underlying items	6	(4,112)	(495)	(1,282)
Operating (loss)/profit Financial expense		(16,702) (1,028)	3,537 (964)	9,649 (2,691)
(Loss/profit before taxation		(17,730)	2,573	6,958
Taxation	8	123	-	1,612
(Loss)/profit for the period		(17,607)	2,573	8,570
Other comprehensive expense
Items that may be reclassified to profit and loss Foreign exchange differences on translation of foreign operations		(163)	(23)	(86)
Total comprehensive (loss)/income for the period		(17,770)	2,550	8,484
		Pence	Pence	Pence
Basic (loss)/earnings per share Diluted (loss)/earnings per share	9 9	(17.27) (17.27)	2.57 2.57	8.57 8.55

*Adjusted EBITDA is a non-GAAP measure and has been calculated as earnings before interest, taxation, depreciation, amortisation, equity-settled share-based payments and other non-underlying items.
 

Consolidated Condensed Statement of Financial Position

	Note	Unaudited As at 31 May 2021 £'000	Unaudited As at 31 May 2020 £'000	Audited As at 30 Nov 2020 £'000
Assets Property, plant and equipment Intangible assets and goodwill	10 11	4,742 8,538	4,337 8,103	3,888 8,358
Deferred tax		1,735	-	1,666
Total non-current assets		15,015	12,440	13,912
Inventories		6,320	6,074	6,835
Trade and other receivables		3,468	2,988	2,508
Cash and cash equivalents		6,372	5,839	5,140
Total current assets		16,160	14,901	14,483
Total assets		31,176	27,341	28,395
Liabilities Trade and other payables Other interest-bearing loans and borrowings Lease liabilities Corporation tax payable	12 12	(11,149)     - (638)   -	(11,577) (2,400) (709) (54)	(10,881) (7,035) (745) (54)
Total current liabilities		(11,787)	(14,740)	(18,715)
Net current assets		19,389	161	11,050
Borrowings Lease liabilities Shares classified as debt	12 12 12	- (1,546)	(12,814) (2,272) (1,220)	(4,200) (1,820) (1,240)
Total non-current liabilities		(1,546)	(16,306)	(7,260)
Total liabilities		(13,333)	(31,046)	(25,975)
Net assets/(liabilities)		17,843	(3,705)	2,420
Equity Share capital Share premium Translation reserve Retained earnings/(accumulated losses)		1,078   14,566 (321)   2,519	14   1,690 (95) (5,314)	14   1,690 (158)   874
Equity attributable to owners of the company		17,843	(3,705)	2,420

Consolidated Condensed Statement of Changes in Equity

	Share capital £'000	Share premium £'000	Hedging reserve   £'000	Retained earnings £'000	Total equity   £'000
As at 1 December 2020	14	1,690	(158)	874	2,420
Loss for the period	-	-	-	(17,607)	(17,607)
Foreign currency translation	-	-	(163)	-	(163)
Total comprehensive loss for the period	-	-	(163)	(17,607)	(17,770)
Transactions with shareholders:
Cancellation of share premium	-	(1,690)	-	1,690	-
Share issue	1,064	14,566	-	-	15,630
Interest of preference shares waived by the owners	-	-	-	185	185
Share-based payments	-	-	-	17,379	17,379
As at 31 May 2021	1,078	14,566	(321)	2,519	17,843

	Share capital £'000	Share premium £'000	Hedging reserve   £'000	Retained earnings   £'000	Total equity   £'000
As at 1 December 2019	14	1,690	(72)	(8,077)	(6,445)
Profit for the period	-	-	-	2,573	2,573
Foreign currency translation	-	-	(23)	-	(23)
Total comprehensive income for the period	-	-	(23)	2,573	2,550
Transactions with shareholders:
Share-based payments	-	-	-	190	190
As at 31 May 2020	14	1,690	(95)	(5,314)	(3,705)

	Share capital £'000	Share premium £'000	Hedging reserve   £'000	Retained earnings   £'000	Total equity   £'000
As at 1 December 2019	14	1,690	(72)	(8,077)	(6,445)
Profit for the period	-	-	-	8,570	8,570
Foreign currency translation	-	-	(86)	-	(86)
Total comprehensive income for the period	-	-	(86)	8,570	8,484
Transactions with shareholders:
Share-based payments	-	-	-	381	381
As at 30 November 2020	14	1,690	(158)	874	2,420

Consolidated Condensed Cash Flow Statement

		Unaudited 6 months ended 31 May 2021 £'000	Unaudited 6 months ended 31 May 2020 £'000	Audited Year ended 30 Nov 2020 £'000
Net cash flow from operating activities
(Loss)/profit for the period Adjustments for:		(17,607)	2,573	8,570
Financial expense		1,028	964	2,691
Taxation Depreciation of property, plant and equipment Amortisation of intangible assets Share-based payments Taxation paid Working capital adjustments Decrease/(increase) in inventories (Increase) in trade and other receivables (Decrease)/increase in trade and other payables		(123)   713   738   17,379   -   515 (960)   268	-   673   603   190   -   120  (757)   1,122	(1,612)   1,300   1,261   381   - (642) (367)   397
Net cash from operations		1,952	5,488	11,979
Cash flows used in investing activities Acquisition of property, plant and equipment   Capitalised development expenditure		(1,579) (918)	(262) (558)	(442) (1,472)
Net cash used in investing activities		(2,497)	(820)	(1,914)
Cash flows from/(used in) financing activities Proceeds from new loan Issue of share capital Interest paid Repayment of lease liabilities Repayment of borrowings		-   14,530 (1,967) (415) (10,200)	-   - (500) (365)   -	310   - (2,925) (846) (3,500)
Net cash from/(used in) finance activities		1,948	(865)	(6,961)
Net increase in cash and cash equivalents Cash and cash equivalents brought forward Exchange losses on cash and cash equivalents		1,402   5,140   (170)	3,803 2,036   -	3,104 2,036 -
Cash and cash equivalents carried forward		6,372	5,839	5,140

Notes to the Interim Results 1.  General Information The Directors of musicMagpie plc (the "Company") present their Interim Report and the unaudited Condensed Consolidated Interim Financial Statements for the six months ended 31 May 2021 ("Condensed Consolidated Interim Financial Statements"). musicMagpie plc is a public limited company incorporated in the United Kingdom whose shares are publicly traded on the Alternative Investment Market (AIM) of the London Stock Exchange and is incorporated and domiciled in the UK. Its registered address is One Stockport Exchange, Railway Road, Stockport, Cheshire, SK1 3SW. 2.  Basis of Preparation These Condensed Consolidated Interim Financial Statements are for the period ending 31 May 2021. They have been prepared in accordance with the AIM rules and International Accounting Standard 34, 'Interim Financial Reporting'. The Condensed Consolidated Interim Financial Statements are prepared under the historical cost convention and presented in the Group's functional currency of Pounds Sterling, rounded to the nearest thousand ('£'000'), unless otherwise stated. The Condensed Consolidated Interim Financial Statements have not been reviewed or audited and do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. On 22 April 2021, the Company was admitted to the Alternative Investment Market (AIM) of the London Stock Exchange. The Admission Document for the Initial Public Offering contains the audited Historical Financial Information of the Company on pages 66 to 106 (the "Historical Financial Information") presented under International Financial Reporting Standards ("IFRS"). The comparative figures for the financial year ended 30 November 2020 are an extract of the Group's Historical Financial Information for that year. Statutory accounts for the year ended 30 November 2020, prepared under Financial Reporting Standard 102, were approved by the board of directors on 16 April 2021 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 (2) or (3) of the Companies Act 2006. Note 25 of the Historical  Financial Information refers to the transition to IFRS from 1 June 2017 and sets out the main items contributing to the change in financial information compared with that reported under UK GAAP as at the transition date. Accounting Policies The accounting policies adopted in the preparation of the Condensed Consolidated Interim Financial Statements are consistent with those followed in the preparation of the Historical Financial Information. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Their adoption is not expected to have a material effect on the Condensed Consolidated Interim Financial Statements. Initial public offering ("IPO") The Company's shares were admitted to trading on AIM on 22 April 2021. These Condensed Consolidated Interim Financial Statements are the Company's first subsequent to its admission. In connection with the admission to AIM, the Group undertook a group re-organisation of its corporate structure which resulted in the Company becoming the ultimate holding company of the Group. The insertion of the Company as a new holding company by way of a share for share exchange was such that the group re-organisation should be accounted for as a continuation of the existing group rather than an acquisition in accordance with the IFRS 3 guidance in respect of reverse acquisition accounting. As the consolidated financial statements of musicMagpie plc represent the continuation of the financial statements of Entertainment Magpie Group Limited ("EMGL"), the assets and liabilities will be recognised and measured at the pre-combination carrying amounts in the books of EMGL. Critical accounting judgements and key sources of estimation and uncertainty  The preparation of the Condensed Consolidated Interim Financial Statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In preparing these Condensed Consolidated Interim Financial Statements, the key sources of estimation uncertainty and  the critical accounting judgements made by management are as follows: Key sources of estimation uncertainty The Group makes an estimate of the useful economic life of acquired intangible assets being the proprietary software acquired. When assessing the useful economic life, management considers expected usage of the assets; technical, technological, commercial and other types of obsolescence; changes in the market demand for the products related to the assets; the level of maintenance expenditure required to maintain the assets' operating capability and whether the assets' useful life is dependent on the useful life of other assets of the entity. Stock provisioning - the Group carries significant amounts of stock against which there are provisions for slow moving lines. The provisioning policies require a degree of judgement and the use of estimates around future sales based on the historical demand for product lines.  In addition, management make use of this historical sales data regarding selling price of items in order to ensure that inventories are valued at the lower of cost and net realisable value. Impairment of assets - in testing for impairment of goodwill and other assets, management have made certain assumptions concerning the future development of the business that are consistent with its forecasts into perpetuity.  Should these assumptions regarding the discount rate or growth in the profitability be unfounded then it is possible that investments and other assets included in the balance sheet could be impaired. Critical accounting judgements Capitalisation of website and IT development costs - judgement is applied to assess whether the criteria for capitalisation of costs is met. Going Concern  The Directors have reviewed the Group's forecast and projections, including assumptions concerning capital expenditure and expenditure commitments and their impact on cash flows, and have a reasonable expectation that the group has adequate financial resources to continue in operational existence for at least 12 months from the date of approval of the interim statements. For this reason, they have continued to adopt the going concern basis in preparing the financial statements. 3.  Principal Risks and Uncertainties The Directors consider that the principal risks and uncertainties, which could have a material impact on the Group's performance in the remaining six months of the financial year, remain substantially the same as those stated on pages 57-64 and 95-98 of the Group's Admission Document for the Initial Public Offering, which is available on the Group's website, www.musicmagpieplc.com . 4.  Segmental reporting Information reported to the Group's Chief Executive Officer for the purposes of resource allocation and assessment of segment performance is focused on product categories. The principal product categories and the Group's reportable segments under IFRS 8 are Technology, Media and Books. An analysis of the results for the period by reportable segment is as follows: 6 months ended 31 May 2021 Technology £'000 Media £'000 Books £'000 Total £'000 Revenue Gross profit Processing wages 39,681   10,339 (2,036) 27,966 11,317 (4,090) 5,125 2,093 (444) 72,772 23,749 (6,570) Contribution after direct labour   8,303 7,227 1,649 17,179 Trading margin (%) Gross profit (%) 35.9 26.1 81.0 40.5 90.2 40.8 57.1 32.6 6 months ended 31 May 2020 Technology £'000 Media £'000 Books £'000 Total £'000 Revenue Gross profit Processing wages 39,358 8,466 (1,794) 27,104 8,972 (3,260) 4,643 1,695 (373) 71,105 19,134 (5,427) Contribution after direct labour 6,672 5,712 1,322 13,706 Trading margin (%) Gross profit (%) 30.4 21.5 77.3 33.1 86.3 36.5 52.0 26.9 Year ended 30 November 2020 Technology £'000 Media £'000 Books £'000 Total £'000 Revenue Gross profit Processing wages 83,496 19,367 (3,660) 58,848 21,016 (7,132) 11,006 4,401 (861) 153,350 44,784 (11,653) Contribution after direct labour 15,707 13,884 3,540 33,131 Trading margin (%) Gross profit (%) 31,9 23.2 78.2 35.7 88.3 40.0 53.7 29.2 5.  Revenue Disaggregation of revenue An analysis of revenue by geographical market is given below: Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year  ended 30 Nov 2020 £'000 United Kingdom Within the European Community other than United Kingdom United States of America Outside the European Community 51,919 3,987 14,110 2,756 48,156 3,232 16,055 3,662 107,770 6,076 33,267 6,237 Total 72,772 71,105 153,350 An analysis of revenue by product time is given below: Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 Technology Media Books 39,681 27,966 5,125 39,358 27,104 4,643 83,496 58,848 11,006 Total 72,772 71,105 153,350 An analysis of revenue by product time is given below: Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 United Kingdom United States of America 58,128 14,644 54,539 16,566 119,082 34,268 Total 72,772 71,105 153,350 Due to the nature of the Group's business, it is not materially affected by seasonal or cyclical trading. 6.  Other non-underlying items Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 IPO related costs Restructuring and redundancy costs 3,882 230 - 495 220 1,062 Total 4,112 495 1,282 IPO related expenditure relates to costs incurred in relation to admitting musicMagpie plc onto the Alternative Investment Market ("AIM") on 22nd April 2021.  Other non-underlying costs relate to non-recurring redundancy, additional COVID related expenditure costs and non-executive monitoring fees. 7.  Equity settled share based payments On 8 February 2021, the Group adopted a new employee share option plan granting options to employees which would vest and become exercisable only on the occurrence of an exit event (including an IPO). The non-cash fair value charge recognised in relation to these in the period to 31 May 2021 under IFRS 2 'Share-based Payment' was £17,284,000. The non-cash fair value charge recognised in the period in respect of equity-settled share options previously granted in August 2018 under the same vesting criteria as above was £95,000 (6 months to 31 May 2020: £190,000; year ended 30 November 2020: £381,000) 8.  Taxation Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 Current tax (credit)/expense (Credit)/Charge for the year (54) - 54 Total current tax (credit)/expense (54) - 54 Deferred tax credit Origination and reversal of temporary differences (69) - (1,666) Total deferred tax credit (69) - (1,666) Total tax credit in the income statement (123) - (1,612) UK Corporation tax rate used to calculate the estimated tax due and deferred tax timing differences: 19% 19% 19% 9.  Earnings per share note Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 (Loss)/profit for the period (17,607) 2,573 8,570 Number Number Number Weighted average number of shares in issue Diluted number of shares 1,2 101,975,210 101,975,210 100,000,000 100,231,927 100,000,000 100,231,927 Pence Pence Pence Basic (loss)/earnings per share (17.27) 2.57 8.57 Diluted (loss)/earnings per share (17.27) 2.57 8.55 Notes:   1 Additional ordinary shares issued as a result of the share split conducted in 2018 (see note 7), have been incorporated in the earnings per share calculation in full without any time apportionment.   2 The adjustments made in calculating the weighted average number of ordinary and potential ordinary shares have been increased to reflect the share split in full without any time apportionment in the comparative period. Adjusted earnings per share is disclosed in Note 13 (Alternative Performance Measures) to show performance undistorted by adjusting items and is therefore considered to show the underlying performance of the Group. 10.  Property, plant and equipment Right of use lease asset £'000 Plant and machinery £'000 Fixtures and fittings £'000 Rental assets £000 Computer and office equipment £000 Total £'000 Cost Balance at 1 December 2019 4,535 3,377 2,438 - 3,764 14,114 Additions - 31 67 - 165 263 Foreign currency adjustment - - - - - - Disposals - - - - - - Balance at 31 May 2020 4,535 3,408 2,505 - 3,929 14,377 Additions - - 56 63 60 179 Foreign currency adjustment - - - - - - Disposals - - - - - - Balance at 30 November 2020 4,535 3,408 2,561 63 3,989 14,556 Additions - 19 80 1,393 156 1,648 Foreign currency adjustment (55) (8) (6) - - (69) Disposals - (285) - - - (285) Balance at 31 May 2021 4,480 3,134 2,635 1,456 4,145 15,850 Depreciation Balance at 1 December 2019 1,573 2,638 1,643 - 3,513 9,367 Charge for the period 331 109 98 - 135 673 On disposals - - - - - - Balance at 31 May 2020 1,904 2,746 1,741 - 3,648 10,040 Charge for the period 299 111 116 - 101 628 On disposals - - - - - - Balance at 30 November 2020 2,203 2,859 1,857 - 3,749 10,668 Charge for the period 220 89 105 100 99 713 On disposals - (273) - - - (273) Balance at 31 May 2021 2,523 2,675 1,962 100 3,848 11,108 Net book value At 31 May 2021 1,957 459 673 1,356 297 4,742 At 30 November 2020 2,332 549 704 63 240 3,888 At 31 May 2020 2,631 661 764 - 281 4,337 11.  Intangible assets and goodwill Goodwill £'000 Website development £'000 IT development £'000 Proprietary software £000 Domains £000 Total £'000 Cost Balance at 1 December 2019 4,848 1,083 4,865 3,000 53 13,849 Additions - 29 529 - - 558 Disposals - - - - - - Balance at 31 May 2020 4,848 1,112 5,394 3,000 53 14,407 Additions - 149 764 - - 913 Disposals - - - - - - Balance at 30 November 2020 4,848 1,261 6,158 3,000 53 15,320 Additions - 45 873 - - 918 Disposals - - - - - - Balance at 31 May 2021 4,848 1,306 7,031 3,000 53 16,238 Amortisation Balance at 1 December 2019 - 977 3,523 1,182 19 5,701 Charge for the period - 39 411 150 3 603 On disposals - - - - - - Balance at 31 May 2020 - 1,016 3,934 1,332 22 6,304 Charge for the period - 37 468 150 3 658 On disposals - - - - - - Balance at 30 November 2020 - 1,053 4,402 1,482 25 6,962 Charge for the period - 43 542 150 3 738 On disposals - - - - - - Balance at 31 May 2021 - 1,096 4,944 1,632 28 7,700 Net book value At 31 May 2021 4,848 210 2,087 1,368 25 8,538 At 30 November 2020 4,848 208 1,756 1,518 28 8,358 At 31 May 2020 4,848 96 1,460 1,668 31 8,103 12.  Interest-bearing Loans and Borrowings Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 Current liabilities Other loans - 1,000 5,803 Hire purchase - 193 - Bank loan - - - Interest accrued on loan notes - 1,207 1,232 Lease liabilities 638 709 745 Total 638 3,109 7,780 Non-current liabilities Loan notes - 4,200 4,200 Other loans - 8,614 - Shares classified as debt - 1,220 1,240 Lease liabilities 1,546 2,272 1,820 Total 1,546 16,306 7,260 Falling due within one year 638 3,109 7,780 Falling due after more than one year 1,546 16,682 7,457 Total 2,184 19,791 15,237 Unamortised debt issue costs - (376) (197) Total interest-bearing loans and borrowings 2,184 19,415 15,040 On 5 February 2021, the Group refinanced with the introduction of a £10m three year committed Revolving Credit Facility ("RCF") repaying existing bank debt included in Other Loans in the process. This agreement which runs until 5 February 2024 also includes an additional uncommitted accordion option facility for up to a further £10m. On the IPO, Primary proceeds of £15.0m were raised, part of which were used to repay all outstanding liabilities with financing parties leaving the RCF undrawn at 31 May 2021. 13.  Alternative Performance Measures Management assess the performance of the Group using a variety of alternative performance measures. In the discussion of the Group's reported operating results, alternative performance measures are presented to provide readers with additional financial information that is regularly reviewed by management. However, this additional information presented is not uniformly defined by all companies including those in the Group's industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies.  Additionally, certain information presented is derived from amounts calculated in accordance with IFRS but is not itself an expressly permitted GAAP measure. Such measures are not defined under IFRS and are therefore termed 'non-GAAP' measures and should not be viewed in isolation or as an alternative to the equivalent GAAP measure. The following are the key non-GAAP measures used by the Group: Adjusted Profit before tax Adjusted profit before tax means (loss)/profit before tax before equity-settled share-based payments and other non-underlying items including non-underlying financial expense relating to deal and early termination fees from previous financing. Unaudited 6 months ended 31 May 2021   £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 (Loss)/profit before tax   (17,730) 2,573 6,958 Equity settled share-based payments   17,379 190 381 Other non-underlying items   4,112 495 1,282 Non-underlying financial expense   240 - 605 Adjusted Profit before tax   4,000 3,258 9,226 Adjusted EBITDA Adjusted EBITDA means adjusted profit before tax before depreciation and amortisation of intangible assets and financial expense. Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 Adjusted profit before tax 4,000 3,258 9,226 Depreciation of property, plant and equipment 713 673 1,300 Amortisation of intangible assets 738 603 1,261 Financial expense (net of non-underlying items above) 788 964 2,086 Adjusted EBITDA 6,240 5,498 13,873 Adjusted earnings per share Adjusted EPS represents adjusted earnings divided by a weighted average number of shares in issue, and is disclosed to indicate the underlying profitability of the Group. note Unaudited 6 months ended 31 May 2021   £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 Adjusted profit before tax 1   4,000   3,258 9,226 Tax effect of the above (253) - 1,295 Adjusted earnings   3,747   3,258 10,521 Number Number Number Weighted average number of shares 2 107,772,020 107,772,020 107,772,020 Pence Pence Pence Adjusted earnings per share 3.48 3.02 9.76 Notes:   1 Adjusted profit before tax means (loss)/profit before tax before equity-settled share-based payments and other non-underlying items.   2 The basic and diluted number of ordinary shares as at 31 May 2021 have been used as the basis for the current and prior periods adjusted EPS calculation. This represents an indication of the future weighted average number of ordinary shares for evaluating performance of the Group. Adjusted Operating Cash flow Adjusted operating cash flow is calculated as Adjusted EBITDA less movements in working capital. Unaudited 6 months ended 31 May 2021   £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 Adjusted EBITDA   6,240 5,498 13,873 Movements in working capital (176) 485 (612) Adjusted Operating Cash flow   6,064 5,983 13,261 Cash conversion % This is calculated as cash generated from operating activities in the Consolidated Cash Flow Statement, adjusted to exclude cash payments for exceptional items, as a percentage of Adjusted EBITDA. Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 Cash generated from operations before tax payments (from Consolidated Cash Flow Statement) 1,952 5,488 11,979 Other non-underlying items 4,112 495 1,282 Cash generated from operations before tax payments and exceptional items paid 6,064 5,983 13,261 Adjusted EBITDA 6,240 5,498 13,873 Cash conversion % 97.2% 108.8% 95.6% Net Cash / (debt) This is calculated as cash and cash equivalent balances less outstanding external loans. Unamortised loan arrangement fees are netted against the loan balance in the financial statements but are excluded from the calculation of net cash/(debt).  Lease liabilities and hire purchase are not included in the calculation of net debt. Unaudited 6 months ended 31 May 2021 £'000 Unaudited 6 months ended 31 May 2020 £'000 Audited Year ended 30 Nov 2020 £'000 Cash and cash equivalents 6,372 5,839 5,140 Loans and accrued loan interest - (15,021) (11,235) Unamortised loan arrangement fees - (376) (197) External loans - (15,397) (11,432) Net Cash / (debt) 6,372 (9,558) (6,292)

 

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