The online musical instrument retailer Gear4music, which saw its share price skyrocket last month after it swung back into profit, said it was on track to generate revenue of more than £150m in 2025.
The London-listed company, which is headquartered in York, said at its annual general meeting today it would announce it was trading “in line with expectations”, with a projected revenue of £154.7m and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £11.7m.
Gear4music added that it had reduced its net debt and operating costs over the first few months of its 2025 financial year.
At the meeting Gear4music’s executive chair, Andrew Wass, will say:”We are pleased to report that trading during the financial year to date has been in line with the Board’s expectations.
Having successfully reduced our net debt and operating costs during FY24, during the early stages of FY25 we have focused on implementing the growth strategy outlined in June and expect this to start delivering results in the second half of this year.
We are well prepared operationally for the upcoming seasonal peak trading period, and the Board remains confident of the delivery of our medium and longer-term profitable growth strategy.
The group intends to release a trading update for the six-month period ending 30 September 2024 on 22 October 2024, followed by half year results on 19 November 2024.”
Gear4music shares surged in August after the online music retailer reported a return to profitability and unveiled a significant boardroom shake-up.
Despite a five per cent dip in sales to £144.4m for the year ending March 2024, the company delivered a notable turnaround, achieving a pre-tax profit of £1.1m – up from the prior year’s £0.4m loss.
The group also revealed it had halved its debt ahead of market expectations and had a “refreshed growth strategy in place, with enhanced product offering and operational efficiency to drive profitable growth” for the new financial year.