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Gear4Music PLC - York-based online musical instruments and equipment retailer - Sales rise 2.5% to £66.3 million in the six months that ended September 30 from £64.7 million a year before. European & Rest of the World sales improve by 10% to £30.8 million from £28.0 million, but UK sales decline by 3.3% to £35.5 million from £36.7 million. Gross margin in the financial first half narrows to 26.3% from 28.0% a year before, due to "targeted stock reductions".
Gear4Music says trading momentum has improved during the second half so far, and it expects to meet recently updated consensus market expectations for the full-year, which ends on March 31. The company places consensus at pretax profit of £1.1 million on revenue of £155.1 million, which would compare to £5.0 million and £147.6 million the year before. Market consensus was lowered last month after Gear4Music cut its guidance, blaming the cost-of-living crisis in the UK and a hot summer. Previously, the market had expected financial 2023 revenue of £163.9 million.
"Whilst mindful of continued uncertainty and volatility across the consumer environment, we are...pleased to report that trading momentum in both our UK and European markets improved towards the end of September, and we have continued to perform well during October to date," says Chief Executive Officer Andrew Wass.
Current stock price: 111.60 pence, up 4.3% in London on Thursday afternoon
12-month change: down 87%
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