Gear4Music (Holdings) PLC - York-based online musical instruments and equipment retailer - Reports lower pretax profit but touts strong pipeline of growth for financial year 2023. Pretax profit for the financial year ended March 31 shrinks to £5.0 million from £14.6 million a year ago. Revenue dips to £147.6 million from £157.5 million. Proposes no dividend, unchanged to a year ago, as it aims to retain money for growth. Marketing expenditure rose by 7.3% to £10.8 million from £9.2 million in the year. Labour costs widened 7% to £13.1 million from £12.3 million.

Firm sees a ‘strong pipeline of growth orientated projects,’ for financial year 2023. It will launch AV.com, its retail brand focused on the home audio visual market, in Europe.

‘During the year, we have had to navigate a period of worldwide supply chain disruption, cost price inflation, and weakening consumer confidence, which makes the level of retained gross margins following the exceptional financial year 2021 a notable achievement that reflects the tenacity of our commercial teams.’

Company adds: ‘We believe we remain well positioned to take market share and are confident in our medium and longer-term profitable growth strategy.’

Current stock price: 178.75 pence, up 2.1% on Tuesday

12-month change: down 81%

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