REG - Gear4music - Trading Update

Gear4music (HOLDINGS)Announcement

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RNS Number : 4998P  Gear4music (Holdings) PLC  20 January 2026

20 January 2026

 

Gear4music (Holdings) plc

Trading Update

Peak season trading ahead of recently upgraded Board expectations

 

Gear4music (Holdings) plc ("Gear4music" or "the Group"), the largest UK based
online retailer of musical instruments and music equipment, today announces a
trading update for the three months to 31 December 2025.

 

 £m                                        3m to 31 Dec 2025  3m to 31 Dec 2024  % change on FY25 Q3
 UK revenue                                37.8               29.7               +27%
 European and Rest of the World revenue    26.8               19.3               +39%
 Total revenue                             64.6               49.0               +32%

 

FY26 Q3 Financial Highlights

 

 -  Very strong revenue growth continued through the peak seasonal trading period
 -  Gross margin increased to 29.0% (FY25 Q3: 28.1%), reflecting continued pricing
    discipline
 -  Gross profit increased to £18.7m (FY25 Q3: £13.7m), an increase of £5.0m
    year on year
 -  FY26 EBITDA is now expected to be ahead of consensus market expectations, with
    EBITDA of not less than £17.7m*

 

Operational update & Trading outlook

 

 -  15-year lease signed for new UK warehouse to increase capacity from FY27 as
    previously outlined
 -  Capital expenditure for the new UK automated warehouse is now expected to be
    £10.2m in FY27 and £8.5m** in FY28, lessening the FY27 financial impact and
    reducing borrowing requirements
 -  FY27 Board expectations upgraded reflecting the continuing very strong
    underlying trading and revised capital expenditure profile

 

Gear4music's Executive Chair, Andrew Wass, said:

"I am pleased to report a very strong third quarter performance, with the
Group continuing to deliver significant revenue growth through the peak
seasonal trading period. Total revenue for the three months to 31 December
2025 increased by 32% to £64.6m (FY25 Q3: £49.0m), reflecting strong
momentum across all geographies. This broad-based growth demonstrates the
effectiveness of our strategy and the continued appeal of our proposition to
customers.

UK revenue increased 27% to £37.8m, with our York warehouse running close to
maximum capacity. As previously announced, plans are in place to expand
UK-capacity in FY27 in line with our long-term strategy.

European and Rest of the World revenue increased 39% to £26.8m, underlining
the strength and scalability of our international platform.

Gross margin improved to 29.0% (FY25 Q3: 28.1%), reflecting ongoing pricing
discipline and operational execution in improved market conditions. As a
result, gross profit increased by £5.0m to £18.7m compared with the prior
year period. The Board is encouraged by the quality of this cash-generative
growth, which has translated into profitability ahead of consensus market
expectations for the full financial year.

Alongside this strong trading performance, we have continued to make progress
against our long-term infrastructure plans. The Group has signed a 15-year
lease for a new UK warehouse in Sherburn in Elmet near York, providing the
additional capacity and efficiency required to support future UK growth.
Following further review, the expected capital expenditure for the new UK
automated warehouse has been re-phased, with £10.2m now anticipated in FY27
and £8.5m** in FY28. This re-phasing derisks project delivery and reduces the
near-term financial impact and lowers anticipated borrowing requirements.

While the macro-economic and consumer environment remains uncertain, the Group
continues to deliver strong momentum and improving profitability, supported by
a clear and disciplined strategy for sustainable growth.

Given the continued strength of trading and the benefits of the revised
capital expenditure profile, the Board has upgraded its expectations for FY26,
FY27 and FY28.

The Board would like to thank all our colleagues across the business for their
continued commitment and hard work, which have been instrumental in delivering
this performance."

*Gear4music believes that prior to the release of this update, consensus
market expectations for the year ending 31 March 2026 are revenues of £182.5
million, EBITDA of £16.7 million and profit before tax of £8.3 million, and
for the year ending 31 March 2027 are revenue of £188.0 million, EBITDA of
£14.4 million and profit before tax of £4.1 million.

**Phase 2 £8.5m estimated capital expenditure is subject to final supplier
negotiation and steel price variation.

ENDS

 

Enquiries:

 

 Gear4music                                             +44 (0)20 3405 0205

 Andrew Wass, Executive Chair

 Gareth Bevan, Chief Executive Officer

 Chris Scott, Chief Financial Officer

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

 Peter Steel

 Anastassiya Eley

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

 Rebecca Sanders-Hewett                                 Gear4music@almastrategic.com

 Joe Pederzolli

 Sarah Peters

 

About Gear4music (Holdings) plc

Gear4music is the largest retailer of musical instruments and music equipment
in the UK, delivering to 190 countries across Europe and the Rest of the
World.

 

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.

 

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

 

Having developed its own e-commerce platform, with multilingual, multicurrency
websites, the Group continues to build its overseas presence.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). Upon the
publication of this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public domain.

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