York-based Gear4Music says it has returned to revenue growth despite reporting a slight decline in takings.

The musical instruments and music equipment business, which also operates a musical instrument shop and warehouse on Clifton Moor, has just released its latest trading update.

For the six months until September 30, the company which was founded in 2003 and is now the country’s largest online musical instruments and equipment retailer, recorded total revenues of £61.7million. This compares with £62.6million in the same six months last year.

Within this, UK sales increased 4 per cent from 36.5million to £38million compared with the same period last year. Sales in Europe and the rest of the world were 9 per cent lower at £23.6 million, compared with £26.1million in the same six months a year ago.

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Gear4Music’s Gross Profit is profit expected to be £16.5million, in the six months to September 30, compared with £17.0million in the same period last year.

However, a loss before tax is expected, but it will improve by £700,000 to £1.2million compared with the same period last year.

Executive chair, Andrew Wass, said: “We are pleased to report good progress in executing the growth strategy we announced in June."

Mr Wass said a return to growth had taken place in September this year, which was expected to gain momentum.

He continued: "“We are also pleased to have further reduced our Net Debt, and improved our overall profitability compared with the same period last year."

This came despite a new AI-based marketing system during the most recent six months, which temporarily increased marketing costs and impacted the sales mix between our own-brand and other-brand products and our European sales.

Mr Wass explained: “These issues have now been resolved, and our marketing investments have stabilised.”

“I am also pleased to report the recent appointment of a new experienced Marketing Director.”

During the period, the company bought the brand, Intellectual Property and other assets of Studiospares Europe Ltd for £150,000, a well-established business which began in 1983 and whose brand offering will form part of Gear4Music’s own-brand portfolio.

Mr Wass added the company's second-hand sales platform gained significant traction this year and further growth was expected as Gear4Music built on this unique offering.

He continued: "“As we enter our peak trading season, which has historically been a key driver of our profits and revenues, the Board is confident that our full-year outlook remains in-line with consensus market expectations."

A company statement added: “Gear4music believes that current consensus market expectations for the year ending 31 March 2025 are revenue of £154.7 million, EBITDA of £11.7 million and profit before tax of £2.8 million.”

Gear4Music will report its interim results for the six months ended September 30 on November 19.