Music firm is back in black
Muscial instrument seller Gear4Music made adjusted pre-tax profits of £1.1m for the year to the end of March.
Despite a 5% fall in revenues to £144.4m, the firm increased its gross margin from 25.7% to 27.3% to overturn last year’s pre-tax £400,000 loss. Adjusted EBITDA rose 34% to £9.9m. The group has reduced its net debt to £7.7m.
The firm is also making changes to its board, with non-executive chair Ken Ford retiring from the board. Chief executive Andrew Wass will replace him as executive chair. Chief commercial officer Gareth Bevan will become chief executive. Dean Murray will step down as non-executive director, with Sharon Daly joining as non-exec. Neil Catto will join the board as senior independent director and chair of the audit committee.
The changes will take effect on Friday 5 July.
Andrew Wass said, “Having delivered the key objectives we set ourselves at the beginning of FY24, the group is well positioned to relaunch its profitable growth strategy for FY25. This will focus on expanding sales verticals and channels to market whilst further enhancing and leveraging our unique bespoke e-commerce platform and product offering.
“International revenue growth faced some localised challenges in FY24; however, the board is confident that, through our ongoing actions and new initiatives, such as our second-hand proposition, European sales are set to start recovering in FY25.
“The cost reductions implemented through FY24 are now delivering full-year benefits as we commence FY25. Alongside this, based on trading performance since our last update in April, the Board remains confident in delivering further improvements in financial performance during FY25 in line with market expectations.”
