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(Alliance News) - Gear4Music Holdings PLC on Wednesday said it is on track to meet its full-year revenue expectations and announced a board reshuffle.
Shares in Gear4Music rose 9.5% to 150.00 pence each in London on Wednesday afternoon.
The York, England-based online retailer of musical instruments and equipment on Wednesday said the financial year ended March 31, its total sales fell 5.0% to GBP144.4 million from GBP152.0 million the year before.
This is due to European and Rest of World sales dropping by 12% to GBP61.3 million in financial 2024 from GBP70.0 million a year prior.
UK sales, however, grew by 1.3% to GBP83.1 million from GBP82.0 million.
Nevertheless, Gear4Music noted that its full-year revenue remained in line with market expectations of GBP144.1 million. In financial 2023, the company reported revenue of GBP152.0 million.
The firm also added that it expects its annual earnings before interest, tax, depreciation and amortisation to meet market consensus of GBP9.8 million. This would be an increase from GBP7.4 million a year ago.
Also, Gear4Music said net debt was reduced "significantly" to GBP7.3 million as at March 31 compared to GBP14.5 million the year before. It added that the planned cost reductions in the second half of 2024 have supported net debt reduction and profitability improvements.
Chief Executive Officer Andrew Wass said: "We are pleased to report that the group's financial performance during [financial 2024] was in line with market expectations, having delivered both gross margin and profitability improvements.
"We continued to invest into and develop our bespoke e-commerce platform during [financial 2024] improving key areas of our proposition to drive further efficiencies and future profitable growth. The board is confident that the positive impact of the cost reductions made during [financial 2024] will deliver full-year benefits in [financial 2025]."
Gear4Music also announced that Non-executive Chair Ken Ford intends to retire from the board on July 5, and CEO Wass will become executive chair as a result. Current chief operating officer, Gareth Bevan, will now become CEO in Wass's place.
The firm noted that Chief Financial Officer Chris Scott and Non-executive director Harriet Williams will remain in the same roles.
By Sabrina Penty, Alliance News reporter
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