York-based online musical equipment retailer Gear4music plc on Wednesday published a year-end trading update covering the 12 months to March 31, 2025, showing sales up 2% at £146.7 million and expected profit before tax of £1.6 million.

These figures are below consensus market expectations of revenues of £154.7 million and profit before tax of £2.8 million.

Gear4music’s Executive Chair, Andrew Wass, said: “Despite a challenging consumer environment over the past 12 months, we are pleased to report that the group’s financial performance in FY25 is expected to surpass FY24.

“Our performance reflects higher revenues, stable gross margins and a continued focus on cost control resulting in increased reported EBITDA, and a £1.0m improvement in Profit Before Tax for the year. A further reduction in net bank debt translates into leverage of x0.6 times FY25 EBITDA (FY24: x0.8 times).

“Financial performance in February and early March 2025 was subdued, primarily due to aggressive discounting from underperforming competitors in both the UK and Europe coupled with ongoing weak consumer confidence.

“However, both UK and European like-for-like (LFL) sales improved markedly in the latter half of March, with early indications suggesting that the competitive pressures may be easing as a result of a number of significant retailers experiencing trading difficulties and now exiting the market.

“Through FY25, we have laid robust foundations for our revised growth strategy first announced in June 2024, by investing in new own-brand products, expanding our second-hand offerings, strengthening our marketing capabilities, and enhancing our bespoke e-commerce platform.

“Economic uncertainty remains as we enter the new financial year, nevertheless we believe these strategic initiatives coupled with competitor developments in our market, position us well to maintain our recent positive momentum and drive accelerated commercial and financial performance in FY26 and beyond.”