Shares in musicMagpie fell by almost 50% after the company battled a squeeze on its margins during the first quarter of its financial year and warned the market it could fall short of its target.
The Stockport-headquartered company, which floated on the London Stock Exchange's AIM last year, also posted a pre-tax loss of £14.8m for its 12 months to November 30, 2021, down from a profit of £6.9m in the prior year.
The business said the loss was due to £25.7m of costs associated with equity-settled share-based payments of £17.4m, depreciation on disposal of property, plant and equipment of £1.8m, provision for impairment of rental assets of £400,000, amortisation of intangible assets of £1.5m as well as £4.6m of IPO and other non-underlying items.
