Gear4music slips to full year loss
Online musical instruments retailer Gear4music has slipped to a full year loss of £0.4 million from a pre-tax profit of £5 million in the prior year.
In the 12 months to 31 March, EBITDA came in at £7.4 million compared to £11.2 million a year earlier, although revenue increased by 3% to £152 million despite a 6% reduction in Gear4music’s number of active customers.
During the year, Gear4music added three new distribution centres to its network, including operations in Spain and Ireland, and also entered the audio-visual market with the acquisition of AV Online.
Andrew Wass, Gear4music chief executive, said: “I am pleased to be reporting FY23 full year results that are in line with guidance provided in April, with the business generating revenues of £152 million and EBITDA of £7.4 million.
“Throughout what has been a challenging year, we continued to make good progress in building the technical and operational infrastructure required for our long-term success as the UKs leading retailer of musical instruments and equipment.
“A particular recent highlight has been the launch of our second-hand system, which whilst still in ‘soft launch’ stage, has traded over 1,000 products within the first three months.”
The company said it reduced its bank debt in the year and renewed its borrowing facility with HSBC at £30 million for a further three-years.
Looking ahead, Wass said: “With a new three-year banking facility agreed, we are confident in our strategic vision, making the most of recent acquisitions and new initiatives, alongside an emphasis on optimising inventory, product margins, and implementing efficiency and cost reduction strategies.
“As consumer confidence returns in the UK and mainland Europe, we look forward to capitalising on the opportunities in our markets, serving our customers and continuing our journey of long-term profitable growth.”
