Source - LSE Regulatory
RNS Number : 0646A
Gear4music (Holdings) PLC
18 January 2024
 


18 January 2024

 

Gear4music (Holdings) plc

Trading Update

Peak season trading in-line with Board expectations, strong margin progress, trading in line with full year market expectations

 

Gear4music (Holdings) plc ("Gear4music" or "the Group"), the largest UK based online retailer of musical instruments and music equipment, today announces a trading update for the three months to 31 December 2023.

 

£m

3m to 31 Dec 2023

3m to 31 Dec 2022

% change on FY23 Q3

UK revenue

26.2

26.0

+1%

European and Rest of the World revenue 

20.2

23.5

(14%)

Total revenue

46.4

49.5

(6%)

 

FY24 Q3 Highlights

 

-     Revenues reflect previously announced FY24 prioritisation of gross margins ahead of sales growth

-     Strong gross margin of 28.2% (FY23 Q3: 25.6%) more than offsets lower revenues

-     Gross profit of £13.1m (FY23 Q3: £12.7m) is £0.4m higher than FY23 Q3

-     Delivery of cost reductions in line with the Board's expectations

-     FY24 EBITDA and net debt reduction in-line with consensus market expectations*

Gear4music's Chief Executive Officer, Andrew Wass, said:

"We are pleased to report that financial performance during our FY24 peak seasonal trading period was in line with the Board's expectations, and we have continued to make good progress with our previously stated objective of prioritising profitability ahead of revenue growth.

As anticipated Christmas trading returned to 'historically normal' patterns, with a robust Black Friday period and peak revenues occurring the week before Christmas, following a relatively subdued period of trading in October and early November.

January trading to date continues to be in line with the Board's expectations. We are confident that the actions we have taken during FY24 to improve our gross margins and reduce our cost base and net debt ensure that the business is well positioned for profitable growth during FY25."

* Gear4music believes that current consensus market expectations for the year ending 31 March 2024 are revenue of £144.1 million, adjusted EBITDA of £9.8 million, adjusted profit before tax of £1.3 million, and pre-IFRS16 net debt of £11.6 million.

ENDS

 

Enquiries:

 

Gear4music

Andrew Wass, Chief Executive Officer

Chris Scott, Chief Financial Officer

+44 (0)20 3405 0205



Singer Capital Markets - Nominated Adviser and Broker

Peter Steel/Sam Butcher, Corporate Finance

Tom Salvesen, Corporate Broking

+44 (0)20 7496 3000

 

 


Alma - Financial PR

Rebecca Sanders-Hewett

Joe Pederzolli

David Ison

+44 (0)20 3405 0205

Gear4music@almastrategic.com

 

About Gear4music (Holdings) plc

Operating from a Head Office in York, Distribution Centres in York, Bacup, Sweden, Germany, Ireland & Spain, and showrooms in York, Bacup, Sweden & Germany, the Group sells own-brand musical instruments and music equipment alongside premium third-party brands including Fender, Yamaha and Roland, to customers ranging from beginners to musical enthusiasts and professionals, in the UK, Europe and the Rest of the World.

 

Having developed its own e-commerce platform, with multilingual, multicurrency websites delivering to over 190 countries, the Group continues to build its overseas presence.

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END
 
 
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