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(Alliance News) - Gear4Music PLC on Thursday said annual profit will fall short of consensus, though it expects to report a sales climb.
Shares in the York, England-based musical instruments and music equipment retailer were down 7.7% at 81.25 pence in London on Thursday morning.
It expects earnings before interest, taxes, depreciation, and amortisation for the financial year ended March 31 between GBP7.3 million and GBP7.7 million, down from GBP11.0 million the previous year.
It would be down on market expectations of GBP8.9 million. Gear4music had previously guided for a full-year Ebitda outcome in line with expectations.
Total annual sales rose by 3.0% to GBP152.0 million from GBP147.6 million, Gear4Music said.
Its UK sales fell by 1.0% to GBP82.0 million from GBP82.6 million the year prior. Meanwhile, its European and rest of the world sales rose by 8.0% to GBP70.0 million from GBP65.0 million
Nevertheless, the company said weaker consumer demand as a result of heightened inflation during February and March hurt Gear4Music's financial 2023 revenue and profit.
Chief Executive Officer Andrew Wass said: "Although the current economic challenges are reflected in our FY23 results, we have taken decisive actions to ensure the group continues to be appropriately configured and well-funded. As FY24 progresses, we expect to make further progress in reducing our net debt, and believe we are well positioned to return to profitable growth."
By Sabrina Penty; Alliance News reporter
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