Gear4music, the online music retailer, has unveiled promising results following the implementation of its new growth strategy.
- In the second quarter, the company experienced a modest 1% increase in revenue, marking a return to growth.
- Despite a slight decline in half-year revenue, Gear4music has turned its fortunes around with a pre-tax profit of £0.6 million.
- The retailer’s second-hand sales platform has shown significant traction, with expectations of continued growth.
- October’s trading performance aligns with market expectations, following strategic expansion moves, including the acquisition of Studiospares.
Gear4music has reported a noteworthy return to revenue growth following a strategic overhaul unveiled in June. The online music retailer achieved a 1% increase in its second-quarter revenue, signalling a positive shift in its financial trajectory.
For the six months leading to 30 September, the total revenue experienced a minor dip of 1%, amounting to £61.7 million. However, the company has shown resilience by reporting a pre-tax profit of £0.6 million for the fiscal year ending March 2024, recovering from the previous year’s loss of £0.4 million.
The outlook for the first half of FY25 indicates a pre-tax loss of £1.2 million, yet this marks a £0.7 million improvement from the same period in the previous year. Gear4music highlights the ‘significant traction’ gained through its second-hand sales platform, which is expected to bolster growth throughout the year.
The company’s October performance has been particularly strong, with results consistent with market expectations. This follows their strategic acquisition of Studiospares, aimed at enhancing their own-brand portfolio and broadening their market reach.
Andrew Wass, Gear4music’s executive chair, expressed satisfaction with the progress, stating, ‘We are pleased to report good progress in executing the growth strategy we announced in June, with a return to growth in FY25 Q2 and further growth momentum during October trading to date.’ Despite initial challenges with a new AI-based marketing system, Wass confirmed the issues have been addressed, stabilising marketing investments.
Gear4music’s strategic initiatives and expansion efforts position the company well for sustained growth and profitability.
