Revenues and profits drop at music retailer following ‘exceptional’ year
Online musical equipment retailer, Gear4music, says it is still managing good progress despite a dip in its figures as the business issues financial results for the year ended 31 March 2022.
The York-headquartered company’s revenues are down 6% to £147.6m (2021: £157.5m) while pre-tax profits dropped 66% to £5m (2021: £14.6m)
Gear4music says it is trading in line with consensus market expectations for the year ending 31 March 2023, which currently indicate revenues of £163.9m and EBITDA of £11.9m.
Andrew Wass, chief executive officer, said: “During FY21, Gear4music was reportedly the world’s fastest growing large online retailer of musical instruments and music equipment, being uniquely positioned to serve customers during Covid lockdowns.
“As previously reported, this meant our FY21 financial results were exceptional, and comparing FY22 against FY20 pre-pandemic levels provides a better indication of the progress the business has made.
“I am pleased to be reporting FY22 full year results today that are slightly ahead of our previous expectations, with EBITDA of £11.2m and pre-tax profit of £5m.
“These results are a significant improvement on FY20 pre-pandemic levels, showing the continued growth and development of our business, and are a testament to the hard work and determination of our talented teams.”
Wass said the business continues to have a significant amount of headroom within its banking facilities and covenants, adding it can also look forward to a strong pipeline of growth orientated projects due to be deployed during FY23.
But he warned weaker consumer confidence across the broader retail landscape is likely to continue impacting progress during H1.
He said careful overhead cost management and the company’s growth initiatives should help offset these headwinds and provide opportunities for stronger growth during H2.
