Gear4music full year performance in line with expectations
Gear4music, the online musical instruments retailer, has delivered a full year performance in line with expectations.
In a year-end trading update, the retailer said total sales in the 12 months to 31 March declined by 5% to £144 million after edging up 1% in the UK and falling by 12% in Europe and the rest of the world.
The retailer’s EBITDA is also expected to be in line with market expectations at £9.8 million, while adjusted pre-tax profit is anticipated to come in at £1.3 million.
Gear4music said planned cost cutting already implemented in the second half of the period will support further net debt reduction and profitability improvements.
Gear4music’s chief executive Andrew Wass (pictured) said: “We are pleased to report that the group’s financial performance during FY24 was in line with market expectations, having delivered both gross margin and profitability improvements.
“As a direct result of the affirmative actions taken to prioritise cash generation and reduce costs, we have almost halved the group’s net debt since 31 March 2023, down to £7.3 million at 31 March 2024, being a reduction of £16.9 million in two years.”
During the year, the retailer continued to develop its ecommerce platform as it looked to improve its proposition to drive further efficiencies and future profitable growth.
Looking ahead, Wass said: “With ongoing investment into key areas of our business, including further development of our second-hand system and higher margin product categories, the group is well positioned to build on the results achieved in FY24 and deliver on our longterm profitable growth strategy.”
