REG - Gear4music - AGM Statement and Trading Update

Gear4music (HOLDINGS)Announcement

09/09/2022 07:00

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RNS Number : 8473Y  Gear4music (Holdings) PLC  09 September 2022

9 September 2022

 

Gear4music (Holdings) plc

AGM Statement and Trading Update

 

Gear4music (Holdings) plc, ('Gear4music' or 'the Group') (LSE: G4M), the UK's
largest retailer of musical instruments and music equipment, will hold its
Annual General Meeting at 10.30am today.

At the meeting Gear4music's Chief Executive Officer, Andrew Wass, will make
the following statement:

"As previously reported, we were expecting inflationary pressures to restrict
operating margins during FY23, and despite the weaker consumer environment we
are pleased to have achieved sales growth during Q1. Trading during July and
August has, however, been further impacted by the widely reported cost of
living crisis and unusually hot weather across Europe.

We expected a return to a more normalised seasonal trading pattern during FY23
with less demand during summer months than winter months, and early
indications are that trading has improved in September. However, given the
lack of visibility over the timing of any improvement in consumer sentiment
and wider macroeconomic conditions as we approach H2, we believe it is now
prudent to moderate our full year expectations accordingly.*

We now expect FY23 revenue to grow to approximately £155 million with EBITDA
of £9m. In line with our stated strategy the Group will continue to focus on
delivering profitable growth as its first priority.

Our pipeline of growth orientated projects, including AV.com, continues to
make good progress, and we are seeing strong results following last year's
investment into our new European distribution hubs. We remain well funded and
profitable and the Board retains its confidence in our medium and longer-term
profitable growth strategy.

The Group intends to announce a more detailed trading update in relation to
the six-month period ending 30 September 2022 on 20 October 2022, followed by
half year results for this period on 15 November 2022."

* Gear4music believes that consensus market expectations for the year ending
31 March 2023 prior to release of this announcement were revenues of £163.9
million and EBITDA of £11.9 million.

 

ENDS

Enquiries:

 

 Gear4music                                                   +44 (0)20 3405 0205

 Andrew Wass, Chief Executive Officer

 Chris Scott, Chief Financial Officer

 Singer Capital Markets - Nominated Adviser and Joint Broker  +44 (0)20 7496 3000

 Peter Steel/Amanda Gray, Corporate Finance

 Tom Salvesen, Corporate Broking

 Investec Bank plc - Joint Broker                             +44 (0)20 7597 5970

 David Flin

 Alex Wright

 Alice King

 Alma PR - Financial PR                                       +44 (0)20 3405 0205

 David Ison                                                   Gear4music@almapr.co.uk

 Lily Soares Smith

 Joe Pederzolli

 Josh Royston

 

About Gear4music (Holdings) plc

Operating from a Head Office in York, Distribution Centres in York, Sweden,
Germany, Ireland & Spain, and showrooms in York, Sweden & Germany, the
Group sells own-brand musical instruments and music equipment alongside
premium third-party brands including Fender, Yamaha 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.

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014.

 

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