LONDON (ShareCast) - (Sharecast News) - Music equipment retailer Gear4music said on Tuesday that pre-tax profits had surged in FY25 and uplifted its guidance for FY26.
Gear4music said FY25 pre-tax profits surged 166% to £1.6m, while gross profits were up 1% at £39.7m and underlying earnings improved 7% to £10.0m.

The AIM-listed firm also said revenues were up 2% at £146.7m, with revenue growth of 4% in H2, reflecting early progress of returning to growth in "a challenging market". UK revenue was up 8% to £90.2m, while European revenues were down 8% at £54.7m.

Gross profit margins slipped 30 basis points year-on-year to 27.0%, while net debt was further reduced to £6.4m at the year-end, down from £7.3m at the end of FY24.

Looking forward, Gear4music said the UK market was consolidating following the previously reported failure of two "significant competitors" in GAK and PMY, noting that it has seen double-digit growth from mid-March, with a strengthening trajectory in FY26 to date.

Gear4music stated that its FY26 financial performance was now seen coming in ahead of current consensus market expectations of £153.8m in revenue, underlying earnings of £10.9m and pre-tax profits of £2.65m.

Chief executive Andrew Wass said: "On 16 April 2025, we reported a return to double-digit sales growth from mid-March onwards, and we are pleased to confirm that since then, both sales momentum and gross margins have continued to increase. This encouraging performance reflects the early positive impact of our revised strategy, alongside a more favourable competitive landscape following the recent failure of two UK competitors.

"Although it remains early in the new financial year, the group has benefited from these developments and the board is uplifting its expectations for the group's financial performance for the year ending 31 March 2026."

As of 1030 BST, Gear4music shares were up 7.50% at 198.88p.





Reporting by Iain Gilbert at Sharecast.com

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE