24 April
2024
Gear4music (Holdings) plc
Year-End Trading
Update
Full year revenue and EBITDA
in line with market expectations, with net debt reduction ahead of
market expectations
Gear4music (Holdings) plc
("Gear4music" or "the Group"), the largest UK based online retailer of musical instruments
and music equipment, today announces a year-end trading update
covering the 12 months to 31 March 2024.
|
£m
|
12m to 31 Mar
2024
|
12m to 31
Mar 2023
|
% Change on
FY23
|
|
UK
sales
|
83.1
|
82.0
|
+1%
|
|
European and Rest of the World sales
|
61.3
|
70.0
|
-12%
|
|
Total sales
|
144.4
|
152.0
|
-5%
|
FY24 Highlights
·
Revenues, in line with market expectations*,
reflect previously announced FY24 prioritisation of gross margins,
profitability, and net debt reduction ahead of sales
growth
·
Gross margin expected to be 27.3% (FY23: 25.7%;
FY22: 27.8%)
·
EBITDA expected to be in line with market
expectations*
·
Net debt reduced significantly to £7.3m at 31
March 2024 (31 March 2023: £14.5m; 31 March 2022: £24.2m), ahead of
market expectations*
·
Planned cost reductions delivered during FY24 H2
will support further net debt reduction and profitability
improvements
Gear4music's Chief Executive Officer, Andrew Wass,
said:
"We are pleased to report that the
Group's financial performance during FY24 was in line with market
expectations, having delivered both gross margin and profitability
improvements. As a direct result of the affirmative actions taken
to prioritise cash generation and reduce costs, we have almost
halved the Group's net debt since 31 March 2023, down to £7.3m at
31 March 2024, being a reduction of £16.9m in two years.
We continued to invest into and
develop our bespoke e-commerce platform during FY24, improving key
areas of our proposition to drive further efficiencies and future
profitable growth. The Board is confident that the positive impact
of the cost reductions made during FY24 will deliver full-year
benefits in FY25.
With ongoing investment into key
areas of our business, including further development of our
second-hand system and higher margin product categories, the Group
is well positioned to build on the results achieved in FY24 and
deliver on our long-term profitable growth strategy."
* Gear4music believes that current
consensus market expectations for the year ended 31 March 2024 are
revenue of £144.1 million, adjusted EBITDA of £9.8 million,
adjusted profit before tax of £1.3 million, and pre-IFRS16 net debt
of £11.6 million.
- Ends -
Enquiries:
|
Gear4music
Andrew Wass, Chief Executive
Officer
Chris Scott, Chief Financial
Officer
|
+44 (0)20 3405 0205
|
|
|
|
|
Singer Capital Markets - Nominated Adviser and
Broker
Peter Steel/Sam Butcher, Corporate
Finance
Tom Salvesen, Corporate
Broking
|
+44 (0)20 7496 3000
|
|
|
|
|
Alma - Financial PR
Rebecca Sanders-Hewett
Joe Pederzolli
David Ison
|
+44 (0)20 3405 0205
Gear4music@almastrategic.com
|
About Gear4music (Holdings)
plc
Operating from a Head Office in York,
Distribution Centres in York, Bacup, Sweden, Germany, Ireland &
Spain, and showrooms in York, Bacup, Sweden & Germany, the
Group sells own-brand musical instruments and music equipment
alongside premium third-party brands including Yamaha, Roland and
Roland, to customers ranging from beginners to musical enthusiasts
and professionals, in the UK, Europe and the Rest of the
World.
Having developed its own e-commerce
platform, with multilingual, multicurrency websites delivering to
over 190 countries, the Group continues to build its overseas
presence.