Online musical instruments retailer Gear4music has reported a bumper rise in annual profits after strong sales growth, improved margins and tight cost control helped deliver record financial results.<\/p>\n
The York-headquartered business said profit before tax surged to \u00a310.3m in the year to 31 March 2026, up from \u00a31.6m the previous year, an increase of more than 540%.<\/p>\n
Revenue rose 30% to a record \u00a3190.7m, while EBITDA climbed 84% to \u00a318.4m, ahead of previous market expectations of \u00a318.1m.<\/p>\n
The company said strong trading momentum continued throughout the year, with fourth-quarter revenue increasing 26% and double-digit percentage growth maintained in the opening months of FY27 despite tougher year-on-year comparatives.<\/p>\n
Gross profit increased 37% to \u00a354.2m, while gross margin improved by 140 basis points to 28.4%, reflecting a combination of higher sales volumes and operational improvements.<\/p>\n
Gear4music also reduced net debt for a fourth consecutive year, ending the period at \u00a35m compared with \u00a36.4m a year earlier, despite making \u00a33.1m of advance payments linked to its new warehouse development.<\/p>\n
The group is continuing work on a new automated distribution centre near York, announced last year in response to rising sales volumes. Management said the project remains on budget and on schedule to become operational ahead of the key peak trading period later this year.<\/p>\n
To support future growth and investment, Gear4music has secured a new \u00a345m committed revolving credit facility extending through to August 2029, providing what the company described as significant liquidity headroom and flexibility to pursue strategic opportunities.<\/p>\n
During the year the retailer also accelerated investment in technology, rolling out several initiatives designed to improve operational efficiency and customer engagement. These included an AI-based inventory forecasting and purchasing platform, a new customer relationship management system and digital promotions platform, and an AI-powered website chatbot.<\/p>\n
The business has also launched a new white-glove delivery and installation service for premium products, enabling it to supply and install higher-value items that were previously difficult to fulfil through standard delivery channels.<\/p>\n
Executive chair Andrew Wass said the group had delivered significant strategic, commercial and financial progress during the year.<\/p>\n
“We are delighted to report that FY26 delivered significant strategic, commercial and financial progress, with strong revenue growth of 30% contributing to an excellent full-year financial performance,” he said.<\/p>\n
“Improved gross margins combined with disciplined cost control have driven an 84% increase in EBITDA and a significant improvement in profit before tax, an increase of \u00a38.7m compared with the previous year.”<\/p>\n
Wass said the new distribution centre would provide additional capacity to support future growth, while the strengthened balance sheet and new financing arrangements positioned the company to respond quickly to opportunities.<\/p>\n
“Due to strong revenue growth, in FY26 we announced plans to open a new automated distribution centre near York, providing additional capacity to support future growth. I am pleased to report that the project remains on budget and on schedule to become operational ahead of our peak trading period later this year,” he said.<\/p>\n
Looking ahead, the company said trading in FY27 to date is in line with board expectations and remains on track to deliver current market forecasts.<\/p>\n
Wass added: “Whilst it remains early in the financial year, double-digit revenue growth in FY27 to date gives us confidence that the business will build on the substantial progress achieved in FY26.<\/p>\n
“The Group is well positioned to take advantage of further growth opportunities in both the UK and Europe.”<\/p>\n","protected":false},"excerpt":{"rendered":"
The York-headquartered business said profit before tax surged to \u00a310.3m in the year to 31 March 2026, up from \u00a31.6m the previous year<\/p>\n","protected":false},"author":271992,"featured_media":2085891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53262,120781,47995],"coauthors":[137100],"class_list":["post-2156528","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-markets","category-retail","tag-featured-story","tag-yorkshire"],"yoast_head":"\n