Musical instruments retailer confident in its strategy for growth

Online musical equipment retailer, Gear4music, says it expects to achieve revenues of £161.2m and EBITDA of £10m for the year ending 31 March 2024.

In an AGM statement released today by chief executive officer, Andrew Wass, the York-headquartered business adds that it is prioritising increasing gross margins and cost base reduction to improve profitability, ahead of revenue growth.

It adds that progress is being made, which includes driving significant cost efficiencies in the company’s software development unit.

Wass added: “Our recently launched second hand system is trading well and continues to show signs of being a long-term growth driver, having successfully facilitated several thousand trade-ins since its March 2023 debut.

“During the last few weeks, we have also launched the system into our European markets, and we are confident it will evolve to become a meaningful component of the group’s future revenue portfolio.

“We are well prepared for the upcoming seasonal peak trading period, backed by a robust level of working capital availability, and the Board retains its confidence in our medium and longer-term profitable growth strategy.”

The group intends to release its half year results on 14 November 2023.