York-based online music retailer Gear4Music has recorded a small loss, blaming tough trading conditions.
In the year to March 30, the company which also has a public showroom on Clifton Moor recorded a loss of £400,000, compared to a profit of £5m the previous year.
However, revenues increased by 3% over the year, from £147.6m to £152m, and by 26% in 2020 when revenue was £120.3m.
Gross margins declined slightly, as did the number of ‘active customers’ down to 810,000, but such numbers remain 7% higher than in 2020, when the retailer received a pandemic boost.
Chief executive officer Andrew Wass said the results were in line with guidance.
Gear4Music of Clifton Moor records £1.1m loss | York Press
He continued: “Throughout what has been a challenging year, we continued to make good progress in building the technical and operational infrastructure required for our long-term success as the UKs leading retailer of musical instruments and equipment.
“A particular recent highlight has been the launch of our second-hand system, which whilst still in 'soft launch' stage, has traded over 1,000 products within the first three months.”
The company was reducing debt and to return to profitability would be focussing on “product margins, efficiency and overhead cost reduction ahead of revenue growth, whilst we continue to develop new growth initiatives for the longer term."
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