Here is a summary of the trading update for Gear4music (Holdings) plc for the year ending March 31, 2025
The company reports robust revenue growth in the UK, with a 9% increase in sales compared to the previous year. However, European and Rest of World sales have decreased by 8%, resulting in an overall modest sales increase of 2% for the group.
Gross margin is expected to remain stable at 27.1%, similar to the previous year.
EBITDA is anticipated to show improvement, reaching £10.0m, and Profit Before Tax is expected to be £1.6m, a £1.0m increase from the previous year.
Net bank debt has been reduced to £6.4m, reflecting a positive financial position.
The companys Executive Chair, Andrew Wass, acknowledges the challenging consumer environment but expresses satisfaction with the groups financial performance, attributing it to higher revenues, stable margins, and cost control measures.
Gear4music has invested in new own-brand products, expanded its second-hand offerings, strengthened marketing capabilities, and enhanced its e-commerce platform as part of its revised growth strategy.
Despite economic uncertainty, the company believes it is well-positioned to maintain positive momentum and drive accelerated commercial and financial performance in the coming year.