York’s Gear4music grows revenue 6%

York-based online musical equipment retailer Gear4music plc said in a trading update for the three months to December 31, 2024, that its 6% revenue growth “represents further positive momentum in a challenging consumer environment.”

Gear4music said “strong gross margin at 28.1% (FY24 Q3: 28.2%; FY23 Q3: 25.6%) reflects continued pricing discipline.”

The firm reported Q3 gross profit of £13.7 million, up £600,000.

It said FY25 EBITDA is in line with consensus market expectations.

Gear4music believes that current consensus market expectations for the year ending March 31, 2025, are revenues of £154.7 million, EBITDA of £11.7 million and profit before tax of £2.8 million.

Gear4music executive chair Andrew Wass said: “We are pleased to report that financial performance during our FY25 peak seasonal trading period was in line with the board’s expectations, with 6% revenue growth and an improvement in gross profit.

“This reflects the progress we have made as a result of our refreshed growth strategy, in what continues to be a challenging consumer environment, particularly in certain European markets.

“Christmas trading followed the pattern we had expected and planned for, with revenues in November being subdued by the late Black Friday weekend condensing peak revenues into the three weeks before Christmas.

“January trading to date continues to be in line with the board’s expectations and we are confident that the business is well positioned for continued profitable growth during FY26.”