Gear4music, the online musical instrument retailer, has reported a return to revenue growth as its new growth strategy begins to yield results.
The company, which has its head office in York, posted a one per cent year-on-year increase in revenue for its second quarter, while total revenue for the six months to September dipped slightly by one per cent to £61.7m, as reported by City AM.
In June, Gear4music unveiled a new strategy aimed at returning to profitability by 2024. The firm managed to swing to a pretax profit of £0.6m in the year to March 2024, a significant improvement from a previous annual loss of £0.4m.
On Tuesday, the company projected a pretax loss of £1.2m for the first half of its 2025 financial year, marking a £0.7m improvement compared to the same period a year earlier.
Gear4music noted “significant traction” for its second-hand sales platform during this period, a trend it expects to continue into the second half of the year and beyond.
The company reported stronger growth in October and maintained that its full-year outlook is in line with market expectations.
Andrew Wass, Gear4music’s executive chair, commented on the performance: “This performance comes despite initial challenges with the rollout of a new AI-based marketing system during H1, which temporarily increased marketing costs and impacted the sales mix between our own-brand and other-brand products and our European sales,”.
He added: “These issues have now been resolved, and our marketing investments have stabilised.”
He went on to say: “As we enter our peak trading season, which has historically been a key driver of our profits and revenues, the board is confident that our full-year outlook remains in-line with consensus market expectations.”
Following this update, Gear4music’s stock price saw an increase of two per cent in early trading. The company’s shares have risen by 22 per cent so far this year.
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Original artice – https://business-live.co.uk/all-about/yorkshire-humber
