REG - Gear4music - AGM Statement and Trading Update

Gear4music (HOLDINGS)Announcement

08/09/2023 07:00

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RNS Number : 7783L  Gear4music (Holdings) PLC  08 September 2023

8 September 2023

 

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:

"We are pleased to report that trading during the financial year to date has
been in line with the Board's expectations.

As highlighted in our statement on 20 June 2023, we are prioritising
increasing gross margins and cost base reduction to improve profitability,
ahead of revenue growth. We are pleased with the progress being made in these
areas, which has included driving significant cost efficiencies in our
software development unit.

Our recently launched second hand system is trading well and continues to show
signs of being a long-term growth driver, having successfully facilitated
several thousand trade-ins since its March 2023 debut. During the last few
weeks, we have also launched the system into our European markets, and we are
confident it will evolve to become a meaningful component of the Group's
future revenue portfolio.

We are well prepared for the upcoming seasonal peak trading period, backed by
a robust level of working capital availability, and the Board retains its
confidence in our medium and longer-term profitable growth strategy.

The Group intends to release a trading update for the six-month period ending
30 September 2023 on 19 October 2023, followed by half year results on 14
November 2023, at which time further details of improved gross margins and the
underlying cost reductions achieved will be shared."

* Gear4music believes that consensus market expectations for the year ending
31 March 2024 prior to release of this announcement were revenues of £161.2
million and EBITDA of £10.0 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/Sam Butcher, Corporate Finance

 Tom Salvesen, Corporate Broking

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

 Rebecca Sanders-Hewett                                       Gear4music@almapr.co.uk

 Joe Pederzolli

 David Ison

 

About Gear4music (Holdings) plc

Operating from a Head Office in York, Distribution Centres in York, Bacup,
Sweden, Germany, Ireland & Spain, and showrooms in York, Bacup, 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.

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