Gear4music Regulatory News (G4M)

23 June 2026

Gear4music (Holdings) plc

Audited results for the year ended 31 March 2026

"Significant revenue growth, and EBITDA and PBT ahead of recently upgraded market expectations with a confident outlook"

Gear4music (Holdings) plc, ("Gear4music" or "the Group") (LSE: G4M), the largest UK based online retailer of musical instruments and music equipment, today announces its financial results for the year ended 31 March 2026.

FY26 Highlights*:

Trading Outlook and Strategy:

* Prior to this update, Gear4music believes that consensus market expectations were: (i) for the year ended 31 March 2026, revenues of £190.7 million, EBITDA of £18.1 million and profit before tax of £9.7 million; and (ii) for the year ending 31 March 2027, revenues of £200.2 million, EBITDA of £16.0 million and profit before tax of £6.0 million.

Commenting on the results, Andrew Wass, Executive Chair said:

"We are delighted to report that FY26 delivered significant strategic, commercial and financial progress, with strong revenue growth of 30% contributing to an excellent full-year financial performance. Improved gross margins combined with disciplined cost control have driven an 84% increase in EBITDA and a significant improvement in profit before tax, an increase of £8.7m compared with the previous year.

Due to strong revenue growth, in FY26 we announced plans to open a new automated distribution centre near York, providing additional capacity to support future growth. I am pleased to report that the project remains on budget and on schedule to become operational ahead of our peak trading period later this year.

Despite paying £3.1m in deposits relating to the new warehouse project, net debt reduced for the fourth consecutive year. In addition, the Group has secured a committed £45m Revolving Credit Facility through to August 2029, providing a strong liquidity position and enabling the business to respond quickly to strategic opportunities as they arise.

During Q4 FY26, we delivered several growth-focused technology initiatives, including the launch of an AI-based inventory forecasting and purchasing platform, a new CRM platform and digital promotions centre, and an AI-powered website chatbot.

To support the strong growth of high-end product sales in FY26, we also recently launched a white-glove in-house courier service, enabling us to deliver, set up and install premium products that we were previously unable to supply, further enhancing our customer proposition and overall customer experience.

Whilst it remains early in the financial year, double-digit revenue growth in FY27 to date gives us confidence that the business will build on the substantial progress achieved in FY26. Trading in FY27 to date is in line with the board's expectations despite more challenging year-on-year comparatives. We are on track to deliver FY27 consensus market expectations and the Group is well positioned to take advantage of further growth opportunities in both the UK and Europe."

- Ends -

Enquiries:

About Gear4music (Holdings) plc

Operating from a Head Office in York, Distribution Centres in York, Bacup, Sweden, Germany, Ireland & Spain, and showrooms in York, Bacup, Sweden & Germany, the Group sells own-brand musical instruments and music equipment alongside premium third-party brands including Yamaha, Roland and Fender, to customers ranging from beginners to musical enthusiasts and professionals, in the UK, Europe and the Rest of the World.

Having developed its own e-commerce platform, with multilingual, multicurrency websites delivering to over 190 countries, the Group continues to build its overseas presence.

Chairman's Statement

Strategic and Financial Overview

Our primary objective for FY26 was to return the business to strong, sustainable revenue growth whilst retaining the profitability improvements made over the last two years. Throughout the year we remained focused on the disciplined execution of our clearly defined Growth Strategy. The significant strategic and financial progress delivered in FY26 provides strong evidence that our strategy is gaining momentum, driving improved performance and delivering tangible results for the Group, as well as providing the platform to capitalise on the long-term growth opportunities.

The outstanding efforts of our team combined with improved market conditions have delivered strong financial outcomes with significant increases in revenue, profitability, and a fourth consecutive year of net debt reduction.

Operational and Commercial progress

I am delighted with the step-up in commercial, operational and financial performance reported through the year. This reflects well on the resilience of our business model and the disciplined execution of our strategic initiatives. We also believe that we are well placed to take advantage of further market opportunities in the UK and Europe as markets consolidate further.

Building on the success of FY26 and to ensure we continue to deliver a market-leading customer proposition, we announced plans to open a new automated distribution centre near York. This new facility is on track to be operational in Autumn 2026 ahead of seasonal peak trading. The facility will free up space in our current York site to enhance Showrooms, Second-hand and Returns operations, and enables us to consolidate operations from our Bacup site.

We are investing an estimated £10.2m into the phase one automation and fitout in FY27, increasing our UK distribution capacity by approximately 2.5 times to support continued growth. Once established, the facility is also expected to deliver increasing operational efficiencies and opportunities for margin enhancement as the business expands.

To support our growth ambitions, we have secured a committed £45m 'Revolving Credit Facility' ('RCF') through to August 2029 from our long-term banking partner HSBC. This facility secures an excellent liquidity position, reinforced by the strength of our balance sheet and enables the Group to respond swiftly to opportunities as and when they arise.

Environmental, Social and Governance

The Group remains committed to generating a positive and lasting impact on society, the environment, and our team. Recognising interest from a broad spectrum of stakeholders in our ESG performance, we are pleased to publish our third Climate Report, included in our FY26 Annual Report.

This year's report reflects the same level of depth and transparency of our disclosures achieved last year, and we aim to continue enhancing our ESG reporting in future periods. This ongoing development will further support our ability to evaluate and mitigate environmental impact wherever feasible and align with evolving stakeholder expectations.

Outlook

The Board is confident in the Group's ability to achieve its long-term strategic goals, underpinned by our leading customer proposition, expanding and scalable operational infrastructure, and robust balance sheet. Our focus remains on driving profitable growth and reinforcing our market leadership position across the UK and in Europe.

In FY26 we made significant progress with the core activities underpinning our Growth Strategy including development of new own-brand products, the enhancement of our marketing capabilities, and continued investment in our proprietary e-commerce platform. These cumulative strategic investments, coupled with the improved competitive landscape, position the Group well to maintain positive momentum through FY27 and beyond.

Andrew Wass

Executive Chair

22 June 2026

Chief Executive's Statement

Financial KPIs

* See note 2 of the Financial Information

** See notes 13 and 14 of the Financial Information

Commercial KPIs

*** Website KPIs transitioned from user-based to session-based metrics. Session-based data provides a more reliable measure of website activity given the effects of cookie consent requirements and guest checkout usage.

Business review

I am pleased to report tangible strategic progress and very strong performance across a wide range of metrics in FY26, especially as this has been delivered against a backdrop of ongoing macroeconomic uncertainty weighing on consumer confidence. All these achievements would not be possible without the exceptional commitment and contribution of our entire team, to whom I extend my sincere appreciation.

The financial year saw consolidation in the UK with two well established competitors in 'Guitar, Amp & Keyboard' ('GAK') and 'Play Music Today' ('PMT') and a number of smaller local operators ceasing trading and exiting the market. This simultaneously created an estimated £70m market share opportunity and improved market conditions as price aggressors left the market.

The European market also saw improved market conditions following the bankruptcy of a leading operator in March 2025 although it was later rescued by its founder. It was especially pleasing to see strong growth across our European markets demonstrating the effectiveness of our strategy and the wide appeal of our proposition to customers.

Strong and consistent revenue growth across the year highlighted that we had reached maximum capacity in the UK. To fulfil our growth ambitions, we announced plans to add an automated operation to our UK footprint and are on track to have Phase One operational in FY27 Q3.

Website sessions increased 32% reflecting heightened demand for our proposition in the current market and 'Average order value' ('AOV') increased 7% to £158, reversing a 4% decrease last year and this reflected proportionally more high value other branded product sales and less pricing pressures on some SKUs in certain territories as compared to last year.

Financial overview

The Group has delivered transformational growth in revenue, supported by a strong gross margin and cost discipline, contributing to an £8.4m increase in EBITDA to £18.4m and an £8.7m improvement in Profit Before Tax to £10.3m. In addition, despite having prepaid £3.1m in relation to contract works and capital expenditure at our new UK warehouse, we recorded a fourth consecutive annual reduction in net bank debt down to £5.0m as covered in further detail in the CFO review.

Strategic Progress

Our Profitable Growth Strategy launched in 2024 continues to evolve and adapt to changing market dynamics, and pivot to capitalise on emerging opportunities. Our growth strategy is built around four pillars:

Continuous development of our platform through targeted AI initiatives

This boosts productivity and elevates the customer experience through the offering of solutions that are unique in our market.

We delivered a series of substantial upgrades to our e-commerce platform throughout the year, including our proprietary AI based inventory forecasting and purchasing platform, our digital promotions centre, integrations with a new CRM/CEP system and a website AI chatbot.

Expanding our capabilities to enhance customer experience

Seeking and reacting to growth opportunities, we invest into operational infrastructure to maximise efficiency and ensure an exceptional customer experience at every touchpoint.

In response to strong revenue growth and an estimated £70m market share opportunity in the UK following the exit of several competitors, we are investing in additional UK operational capacity. Phase One of the project is expected to be operational in Autumn 2026 and will provide the capacity and operational efficiencies required, coming on stream ahead of our seasonal peak trading period and supporting our future growth in the UK market. As previously reported, total fit-out costs associated with the facility are expected to be £10.2m in FY27.

In June 2026 we launched an in-house courier operation to offer a differentiated white-glove delivery and installation service, to drive growth in premium product sales by enhancing the customer experience and build on recent gains in AOV.

Enhancing our product offering

This includes developing and launching a greater number of best-in-class own-brand products, scaling up our second-hand and digital download propositions, and exploring additional strategic brand partnerships. These initiatives are designed to ensure value for money and strengthening our market share. We evaluate opportunities to acquire legacy brands as they arise.

Continued expansion of our in-house product design and development capabilities enabled the successful launch of a record 771 new own-brand products. This strategic initiative supports our focus on differentiated offerings and margin expansion, further consolidating our market and value proposition. 

Diversifying our channels to market

As 'Artificial-Intelligence' ('AI') reshapes consumer behaviour and the digital search landscape, enhancing visibility within AI-generated search results including search engine AI overviews and large language models ('LLM's), is becoming increasingly important. In response, we are investing in initiatives that strengthen its presence across these emerging discovery channels and support long-term customer acquisition.

We continue to focus on channel diversification to reduce dependence on 'Pay-per-click' ('PPC') and drive more sustainable and cost-effective customer acquisition. We leverage influencers to expand our reach, develop affiliate programs, and integrate with new European marketplaces. Where appropriate, these efforts are supported with AI to maximise their effectiveness.

Outlook

While discretionary consumer spending remains under pressure, a positive start to FY27 relative to strong prior-year comparatives, provide the Board with a high degree of confidence in the Group's growth prospects for FY27 and beyond. This confidence is supported by enhanced operational foundations, a strong balance sheet and ready access to capital, and the continued disciplined delivery of the Group's strategic roadmap.

Gareth Bevan

Chief Executive Officer

22 June 2026

Chief Financial Officer's statement

Overview

The financial progress achieved in FY25 provided the Group with a strong foundation as it entered FY26, positioning the business favourably to accelerate execution of its Growth Strategy and deliver enhanced value for shareholders and stakeholders alike.

Since FY26 Q1, the Group has benefited from the exit of two established competitors in the UK, bringing a related improvement in broader market conditions. In addition, a major European competitor ceased trading during Spring 2026 after entering bankruptcy proceedings and subsequently restructured its operations.

The Group reports a particularly strong FY26 financial performance, delivering significant revenue growth, improved gross margins, and maintaining a disciplined approach to cost management. Collectively these factors contributed to year-on-year improvements of £8.4m (84%) in EBITDA to £18.4m and £8.7m in Profit Before Tax to £10.3m.

The Group's strong trading performance further strengthened its balance sheet. Notwithstanding an £8.6m increase in inventory to support continued revenue growth, together with £3.1m of prepayments relating to fit-out works, and plant and machinery at our new UK distribution centre, net bank debt reduced for a fourth consecutive year to £5.0m as at 31 March 2026. As a result, the Group's leverage ratio at 31 March 2026 improved to 0.3x FY26 EBITDA (FY25: 0.6x) further reinforcing the Group's robust financial position.

Revenue

Revenue growth was consistently strong through the year with quarterly growth of 27%, 34%, 32% and 26% sequentially from Q1 to Q4. This equated to growth of 31% in H1 and 29% in H2.

UK revenue of £114.1m was £23.9m (26%) ahead of last year which itself was £7.1m (8%) ahead of FY24 reflecting the enduring strength of brand and proposition in our most mature market, with the Group taking further market share. This takes our estimated UK market share to 13.1% (FY25: 10.1%).

European growth has lagged the UK in recent years, reflecting challenging markets and competitive environment where certain underperforming competitors resorted to aggressive discounting. Consistent with our long-term strategy, we maintained pricing discipline throughout this period. Against this historical backdrop, FY26 revenue growth of 37% in Europe was particularly encouraging, supported by an improvement in market conditions and strengthening of the Group's position.

Revenues from sales outside of Europe accounted for 1.0% of total revenue (FY25: 1.2%).

Other brand revenue of £138.3m was £33.6m (32%) ahead of last year reflecting improved market conditions and opportunities for particular brands in certain territories.

Own-brand revenue increased by 24% (+£8.7m) during the year, reflecting the continued strengthening of our product range and customer proposition. Own-brand products accounted for 23.3% of total revenue (FY25: 24.3%) despite representing just 8.8% of total SKUs listed (FY25: 8.8%). Growing our own-brand business remains a strategic priority for the Group and to support this ambition, we have again invested in our own-brand team, enhancing our capabilities in product development, sourcing and brand management.

Carriage income increased to £7.1m during the year and represented 3.7% of total revenue (FY25: 3.9%). The reduction as a percentage reflects lower average carrier costs and a 7% increase in AOV to £158.

Other revenue comprises paid for extended warranty income, and commissions earned on facilitating point-of-sale credit for retail customers. The proportion of revenue coming from these sources was 0.5% of total revenue in FY26 and 0.4% in FY25.

Gross profit

The combination of 30% revenue growth and a 140bps improvement in gross margin resulted in gross profit being £14.5m (36%) ahead of last year.

Product margin improved 80bps to 32.0% reflecting a disciplined approach to pricing and an improvement in market conditions following the exit of a number of aggressive price-led competitors. In addition, own-brand margins benefited from the expansion of new product ranges positioned at attractive price points and supported by favourable margin structures.

A 20bps decrease in carriage costs reflects customers selecting cheaper delivery options and a 7% increase in AOV.

The Group benefits from buying scale relative to its UK competitors, and its ability to source other branded products in Swedish Krona and Euros and receive product directly into its European distribution centres is a point of differentiation. The Group purchases its own-brand products in US Dollars and product margin can be impacted by exchange rate fluctuations.

Deal stock

In FY26 H1, the Group acquired inventory from the Administrators and suppliers of GAK and PMT for £2.2m. Sales of this inventory generated revenue of £3.6m at a 54% gross margin.

The incremental benefit of these transactions is difficult to quantify as the Group already stocked and sold the majority of the product lines, albeit typically at lower products margins. However, to illustrate the maximum potential impact, if the full revenue and profit contribution from these transactions is excluded the Group would still have delivered 28% revenue growth, and a 27.9% gross margin representing an improvement of 90 basis points on FY25.

Administrative expenses and Operating profit

Operating profit and EBITDA increased year-on-year by £8.3m and £8.4m respectively, to £11.5m and £18.4m. This significant increase in profits and profitability reflects the Group's ability to convert higher revenues into earnings through increased operational leverage, while maintaining disciplined control of its cost base.

Administrative expenses increased 17% (£6.4m) on FY25, well below the 30% increase in revenue.

Combined marketing and labour costs of £28.5m (FY25: £23.9m) accounted for 65% of administrative expenses in FY26 (FY25: 64%):

Other expenses and net profit

Net financial expenses of £1.2m (FY25: £1.7m) comprised £1.0m net bank interest (FY25: £1.1m), reflecting lower average net debt and lower interest rates, £0.3m of IFRS16 lease interest (FY25: £0.4m), and a £0.1m net foreign exchange gain (FY25: £0.2m loss).

The Group reports a profit before tax of £10.3m (FY25: £1.6m) that after tax translates into basic and diluted earnings per share of 34.9p (FY25: 4.0p basic and 3.8p diluted gain per share).

The FY26 tax charge of £3.0m reflects increased profits generated in the year, net of a £0.2m deferred tax credit. Profit for the year was £7.3m (FY25: £0.8m).

Cash-flow

Net bank debt decreased for the fourth consecutive year, from £6.4m at the start of the year down to £5.0m representing 0.3x FY26 EBITDA (£18.4m), and secured by two freehold properties with a combined carrying value of £6.7m.

In June 2026, the Group renewed its RCF at £45m for a further three years to August 2029 with its bankers, HSBC, providing the headroom to invest in opportunities including M&A as and when they arise.

'Movement in working capital' primarily reflects an £8.6m increase in inventory investment (25%) over the year, in-line with increased trading activity and partially offset by a £2.5m increase in trade payables. This movement also includes £3.1m of prepayments in relation to contract works and capital expenditure in relation to the Group's new UK warehouse that will unwind in FY27 H1.

Net cash outflow in investing activities was £0.4m lower than previous year at £3.6m including £3.3m of capitalised software development costs (FY25: £3.6m) and £0.3m property, plant and equipment additions (FY25: £0.3m). Depreciation and amortisation of £6.9m (FY25: £6.8m) is added back in 'net cash from operating activities'.

Net cash outflow from financing activities of £2.4m (FY25: £3.5m outflow) represents £2.1m payment of lease liabilities (FY25: £1.7m) and £1.2m interest paid (FY25: £1.8m), net of a £1.0m increase in borrowings under RCF (FY25: flat).

Balance sheet

The Group's balance sheet strengthened further during the year, with net assets increasing by £7.0m to £46.3m. The Group also has significant financial flexibility with its newly confirmed £45m committed RCF.

Capital expenditure on property, plant and equipment totalled £0.3m across all sites (FY25: £0.3m).

The Group's freehold head office in York was independently valued at 31 March 2026 at £5.6m, resulting in a £0.5m non-cash revaluation reserve charge in the year.

The Group capitalised £3.4m of software development costs during the year (FY25: £3.6m), relating to the ongoing enhancement of our proprietary e-commerce platform. Related amortisation of £4.2m (FY25: £4.1m) resulted in a year-end net book value of £11.5m (FY25: £12.3m).

Other intangible assets £5.3m goodwill, £3.0m domain names, and brands of £0.9m.

Reported inventory of £42.8m was £8.6m (25%) higher than at 31 March 2025, in-line with increased trading activity and reflecting investment in inventory on-hand availability including own-brand range and breadth across all DCs, and investment in branded-products as and when the right opportunities arose.

The Group reports net bank debt of £5.0m at the year-end (31 March 2025: £6.4m).

Dividends

The Board is confident in the prospects for the business and recognises the importance of generating and retaining cash reserves to support future growth, and as such the Board does not consider it appropriate to declare a dividend at this time but will continue to review this position on an annual basis.

Chris Scott Chief Financial Officer 22 June 2026

Consolidated Statement of Profit and Loss and Other Comprehensive Income

The accompanying notes form an integral part of the consolidated financial report.

Consolidated Statement of Financial Position

The notes 1 to 19 form part of the consolidated financial report.

Company registered number: 07786708

Consolidated Statement of Changes in Equity

The accompanying notes form an integral part of the consolidated financial report.

Consolidated Statement of Cash Flows

The accompanying notes form an integral part of the consolidated financial report.

Notes to the consolidated financial report

(forming part of the financial report)

General Information

Gear4music (Holdings) plc is a public limited company, is incorporated and domiciled in the United Kingdom, and is listed on the Alternative Investment Market ('AIM') of the London Stock Exchange.

The group financial statements consolidate those of the Company and its subsidiaries (collectively referred to as the "Group").

The principal activity of the Group is the retail of musical instruments and equipment.

The registered office of Gear4music (Holdings) plc (company number: 07786708), Gear4music Limited (company number: 03113256), and Cagney Limited (dormant subsidiary; company number: 04493300) is Holgate Park Drive, York, YO26 4GN.

At the financial year-end the Group has four trading European subsidiaries: Gear4music Sweden AB, Gear4music GmbH, Gear4music Europe Limited (formerly known as Gear4music Ireland Limited), and Gear4music Spain SL. All four are 100% subsidiaries of Gear4music Limited.

Accounting policies

1.1 Basis of preparation

The financial information set out in this announcement does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. 

It has been prepared in accordance with the recognition and measurement principles of UK-adopted International Accounting Standards, including IFRIC interpretations issued by the International Accounting Standards Board, and in accordance with the AIM rules and is not therefore in full compliance with IFRS. The principal accounting policies of the Group have remained unchanged from those set out in the Group's 2025 annual report. The financial statements have been prepared under the historical cost convention with the exception of land and buildings which are accounted for at fair value.

The results for the year ended 31 March 2026 have been extracted from the full accounts of the Group for that year which have not yet been delivered to the Registrar of Companies. Grant Thornton UK LLP has reported on those accounts and their report is (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The financial information for the year ended 31 March 2025 is derived from the statutory accounts for that year, which have been delivered to the Registrar of Companies. Grant Thornton UK LLP reported on those accounts and their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. 

Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group.

The announcement will be published on the Company's website. The maintenance and integrity of the website is the responsibility of the directors. The work carried out by the auditors does not involve consideration of these matters. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Accounting period

The financial report presented covers the years ended 31 March 2026 and 31 March 2025.

Measurement convention

The financial report has been prepared on the historical cost basis except for land and buildings that are stated at their fair value.

Monetary amounts are expressed in Sterling (GBP) and rounded to the nearest £1,000.

1.2 Adoption of new and revised standards

Various new or revised accounting standards have been issued which are not yet effective.

The following new standards, and amendments to standards, have been adopted by the Group during the year ended 31 March 2026, and the impact was not material:

- Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rate (Lack of exchangeability)

The following new standards, and amendments to standards, were in issue but not yet effective at the date of authorisation of these financial statements and have not been early adopted by the Group:

- IFRS 18 - Presentation and Disclosure in Financial Statements

- IFRS 19 - Subsidiaries without Public Accountability - Disclosures

- Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments

The Directors are currently assessing the impact of these new standards and amendments on the Group's consolidated financial statements.

1.3 Going concern presumption for the period to 30 June 2027

The Group's business activities and position in the market, and principal risks, uncertainties and mitigations are described in the Group's annual report.

The Group sets an annual budget against which performance is compared, and operates a monthly reporting and rolling forecasting cycle, which the board uses to ensures that the profitability, cash flow and capital requirements of the business are sufficient to ensure its ongoing viability. Management relies on weekly and monthly financial, commercial and operational reporting to monitor, assess and control performance through the financial year. These reports form the basis upon which the board satisfies its requirements to update stakeholders with relevant financial performance and prospects.

The Group's policy is to ensure that it has sufficient facilities to cover its future funding requirements. At 31 March 2026 the Group had net bank debt of £5.0m (31 March 2025: £6.4m), with £8.0m in cash (31 March 2025: £5.6m). The Group has reduced its net debt from a financial year-end peak of £24.2m at 31 March 2022 to £5.0m at 31 March 2026. 

In June 2026 the Group renewed its RCF with HSBC at £45m for a three-year and two-month period to August 2029, with options to extend, enabling it to make acquisitions and investments as opportunities rise. This facility provides a significant and appropriate level of headroom that has been factored into the Directors going concern assessment.

The Group has conducted a reverse stress test where revenue was assumed to decrease 25% over the period to 30 June 2027 below a reasonable base case, and the Group was able to rely on cost reduction and working capital mitigations to continue to trade. The Group has therefore concluded that there is no plausible scenario where the Group breaches its covenants nor has insufficient liquidity, re-affirming the assessment of the Group as a going concern.

The Directors have considered the Group's position and prospects in the period to 30 June 2027 based on its offering in the UK and Europe and concluded that potential growth rates remain strong. There is a diverse supply chain with no key dependencies.

Having duly considered all of these factors and having reviewed the forecasts for the period to 30 June 2027, the Directors have a reasonable expectation that the Group has adequate resources to continue trading for the foreseeable future, and as such continue to adopt the going concern basis of accounting in preparing the financial statements.

2 Segmental reporting

The Group's revenue and profit was derived from its principal activity which is the sale of musical instruments and equipment.

In accordance with IFRS 8 'Operating segments', the Group has made the following considerations to arrive at the disclosure made in these financial statements. IFRS 8 requires consideration of the 'Chief Operating Decision Maker ('CODM') within the Group, which in the Group's case is the Executive Board. Operating segments have been identified based on the internal reporting information and management structures with the Group. Based on this information it has been noted that the CODM reviews the business as one segment and receives internal information on this basis. Therefore, it has been concluded that there is only one reportable segment.

Revenue by Geography

Administrative expenses by Geography

The majority of Group assets are held in the UK except for local right of use assets and property, plant and equipment, and cash in Sweden (31 March 2026: £2.1m; 31 March 2025: £2.9m), Germany (31 March 2026: £1.5m; 31 March 2025: £1.5m), Spain (31 March 2026: £0.4m; 31 March 2025: £0.8m), and Ireland (31 March 2026: £0.4m; 31 March 2025: £0.3m).

Revenue by Product category

All revenue is recognised on a point-in-time basis except for warranty income which is spread over time.

3 Expenses and other income

Included in profit/loss are the following:

Rental income relates to our freehold Head-office in York. 'Other' includes income from on-site café at York Head-office, and marketing support.

4 Staff numbers and costs

The average number of persons employed by the Group (including directors) during the year, analysed by category, was as follows: