Gear4music is experiencing a revival in revenue post the unveiling of its new strategy in June. Key figures from the earnings report shed light on these developments.
- In the second quarter, Gear4music reported a revenue increase of 1%, with a six-month total reaching £61.7 million.
- The new strategy focuses on achieving profitability by March 2024, marking a significant turnaround from previous losses.
- A noticeable surge in second-hand sales contributed to the positive financial outlook for the company.
- The acquisition of audio business Studiospares has enhanced Gear4music’s own-brand offerings, aligning with their growth objectives.
Gear4music has witnessed a modest revenue growth of 1% in the second quarter, despite an overall decline of 1% in total revenue for the six months ending 30 September, totalling £61.7 million. This slight uptick indicates the initial success of their newly implemented growth strategy.
The company’s strategic plan, launched in June, targets a return to profitability by March 2024. They reported a pre-tax profit of £0.6 million for the year ending March 2024, reversing a previous year’s loss of £0.4 million. Expectations for the first half of FY25 suggest a pre-tax loss of £1.2 million, an improvement of £0.7 million compared to the same period last year.
A key driver of Gear4music’s improved financial performance has been their second-hand sales platform, which has gained substantial traction. With expectations of continued growth in this sector, the company is optimistic about maintaining this momentum.
Further bolstering their market position, Gear4music’s acquisition of Studiospares has strengthened their own-brand portfolio. This expansion is expected to support Gear4music’s growth ambitions, aligning with their strategic objectives.
Andrew Wass, Gear4music’s executive chair, acknowledged the progress in executing the new strategy despite initial challenges with an AI-based marketing system. “We are pleased to report good progress… Our marketing investments have stabilised.”
Gear4music’s strategic initiatives are beginning to show positive results, setting the stage for future growth and profitability.
