Gear4Music suffers as UK costs crisis hits demand
Gear4music says its full-year sales and earnings are set to fall slightly short of market expectations as consumer confidence and international sales weaken.
Shares of the York, northern-England based company fell as much as 28% after it said full-year revenue and Ebitda would be “slightly lower” than consensus expectations. The firm’s market value now stands at about £55 million pounds.
The business has previously said its sales were affected by Brexit-related challenges in 2021, a year in which the new Trade and Cooperation Agreement between the UK and the European Union introduced new bureaucracy including customs checks.
While UK sales have continued to grow at a slower pace than during the pandemic, its sales in Europe are almost a fifth lower than the previous year.
Sales in Europe and the rest of the world are expected to come in at £65m – 18% lower than the year before but 11% higher than in 2020. EBITDA is expected to come in at £11m – down from £19.8m last year but ahead of the £7.8m it reported in 2020.