York-based online musical equipment retailer Gear4music plc said sales dipped for the last six month period as it had some issues with a new AI-based marketing system. 

The company said the system “temporarily increased marketing costs and impacted the sales mix between our own-brand and other-brand products and our European sales.”

It said the issues have now been resolved and the company had appointed a new, experienced Marketing Director.

For the last six months, the company said revenue fell to £61.7 million from £62.6 million a year ago. It said EBITDA rose slightly to £2.9 million, compared with £2.4 million a year ago. 

For the full year, it said it was well-positioned and prepared for the upcoming peak seasonal trading period and that its outlook remains in line with consensus market expectations of £154.7 million of revenue and EBITDA of £11.7 million.