York-based Gear4music says return to sales growth is sign of progress

Operating from a head office in York, the group has distribution centres in Sweden, Germany, Ireland and Spain.

Commenting on the results, Andrew Wass, the group’s executive chair said: "We are pleased to report progress in executing our refreshed growth strategy announced in June 2024, resulting in improvements in our financial performance during FY25 H1 (the first half of the year). Building on our return to sales growth in FY25 Q2, we have achieved a 5 per cent increase in revenue during FY25 H2 (the second half of the year) trading to date, following the resolution of the challenges associated with the initial roll-out of our new outsourced AI-based marketing platform.

“Aware of the potential for ongoing weakness in the European consumer retail environment, we maintained a disciplined approach to cost management during FY25 H1, contributing to a further reduction in our net debt. While the recent UK budget will introduce additional employment costs from FY26 onwards estimated at £0.3m, we are confident these can be largely mitigated through further cost-saving measures.

He added: “Our second-hand sales platform continued to gain significant traction during FY25 H1, with sales growing by 286 per cent to £1.4m in the period. We anticipate sustained strong growth in this area as we expand consumer awareness and our channels to market. Our long-term focus remains on growing higher-margin revenues, and we will continue to invest in areas that support this objective.” Mr Wass said the group’s full-year outlook remains in-line with consensus market expectations and the group is well prepared for its seasonal peak trading period.