Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Gear4music trades in line, gross margins and profitability improves
(Sharecast News) - Music instruments retailer Gear4music said on Wednesday that its full-year performance was in line with market expectations, having delivered both gross margin and profitability improvements. Gear4music said annual revenues would come in slightly ahead of current expectations of £144.1m at £144.4m, while FY adjusted underlying earnings and pre-tax profits would also beat expectations of £9.8m and £1.3m, respectively, reflecting the group's prioritisation of gross margins, profitability, and net debt reduction ahead of sales growth.
UK sales were up 1% at £83.1m, while Europe and RoW sales dropped 12% to £61.3m.
Gross margins were expected to be 27.3%, up from 25.7% a year earlier, while net debt was reduced significantly to £7.3m from £14.5m at the same time twelve months prior, ahead of market expectations for a pre-IFRRS16 net debt position of £11.6mm.
The AIM-listed group added that planned cost reductions delivered during the second half of 2024 would also support further net debt reduction and profitability improvements.
Chief executive Andrew Wass said: "As a direct result of the affirmative actions taken to prioritise cash generation and reduce costs, we have almost halved the group's net debt since 31 March 2023, down to £7.3m at 31 March 2024, being a reduction of £16.9m in two years.
"We continued to invest into and develop our bespoke e-commerce platform during FY24, 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 FY24 will deliver full-year benefits in FY25."
Separately, Gear4music revealed that chairman Ken Ford will step down from the board later in 2024, with Wass to take over his job and current chief operating officer Gareth Bevan to fill the vacant CEO role.
As of 1040 BST, Gear4music shares rallied 6.24% to 145.56p.
Reporting by Iain Gilbert at Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
