Gear4music reports surge in profits as revenue climbs 30%
Gear4music has reported an “excellent” financial performance in the year to 31 March with profits coming in better than expected.
The online musical instrument retailer increased its EBITDA to £18.4 million from £10 million in the previous year while growing its pre-tax profit to £10.3 million from a prior £1.6 million.
Subscribe to TRBMeanwhile, revenue climbed by 30% to £190.7 million.
Gear4music said it remained firmly focused on its growth strategy in the year, which included the announcement that it would be opening a new automated distribution centre near York. The facility is on track to be operational in the autumn ahead of seasonal peak trading.
It also made progress in developing new own-brand products, improving its marketing capabilities, and investing in its proprietary ecommerce platform.
To support its growth ambitions, the company has secured a £45 million revolving credit facility through to August 2029 from its long-term banking partner HSBC.
Andrew Wass (pictured), executive chair at Gear4music, said: “We are delighted to report that FY26 delivered significant strategic, commercial and financial progress, with strong revenue growth of 30% contributing to an excellent full-year financial performance.
“Improved gross margins combined with disciplined cost control have driven an 84% increase in EBITDA and a significant improvement in profit before tax, an increase of £8.7 million compared with the previous year.
“During Q4 FY26, we delivered several growth-focused technology initiatives, including the launch of an AI-based inventory forecasting and purchasing platform, a new CRM platform and digital promotions centre, and an AI-powered website chatbot.
“To support the strong growth of high-end product sales in FY26, we also recently launched a white-glove in-house courier service, enabling us to deliver, set up and install premium products that we were previously unable to supply, further enhancing our customer proposition and overall customer experience.”
Looking ahead, the company said it will remain focused on driving profitable growth and reinforcing its market leadership position across the UK and in Europe.
Wass said: “Trading in FY27 to date is in line with the board’s expectations despite more challenging year-on-year comparatives. We are on track to deliver FY27 consensus market expectations and the group is well positioned to take advantage of further growth opportunities in both the UK and Europe.”
