Gear4Music changes its tune on expected revenue and profits

York-headquartered musical instruments and equipment business, Gear4Music, today revealed that profits for the full year will be below market expectations.

The company said that EBITDA for the year to 31 March is now expected to come in at £10m, down from the anticipated figure of £11.7m, while profit before tax will be £1.6m compared the market forecast of £2.8m. However, that figure is a significant increase from £0.6m the previous year.  Group revenue of £146.7m will also be below expectations of £154.7m.

In early trading, Gear4Music shares fell by 3.6% to 130p, significantly down from 200p six months ago, and at a fraction of the 1010p high during the pandemic.

Executive chair, Andrew Wass, said: “Despite a challenging consumer environment over the past 12 months, we are pleased to report the group’s financial performance in FY25 is expected to surpass FY24.

“Our performance reflects higher revenues, stable gross margins and a continued focus on cost control resulting in increased reported EBITDA, and a £1m improvement in profit before tax for the year.

“Financial performance in February and early March 2025 was subdued, primarily due to aggressive discounting from underperforming competitors in both the UK and Europe coupled with ongoing weak consumer confidence.

“However, both UK and European like-for-like (LFL) sales improved markedly in the latter half of March, with early indications suggesting that the competitive pressures may be easing as a result of a number of significant retailers experiencing trading difficulties and now exiting the market.”

The business adds that it has been investing in new own-brand products, expanding its second-hand offerings, strengthening marketing capabilities, and enhancing its e-commerce platform.

Gear4Music notes that economic uncertainty remains as it enters the new financial year. But the company says it is well placed to maintain its recent positive momentum and drive accelerated commercial and financial performance in FY26 and beyond.