Trading Update
Gear4music (Holdings) plc reported a strong year-end trading performance for the 12 months to 31 March 2026, with total sales increasing by 30% to £190.7 million, driven by a 26% rise in UK sales to £114.1 million and a 36% increase in European and Rest of the World sales to £76.6 million. The company expects EBITDA to be at least £18.1 million, a significant increase from £10.0 million in the prior year, and profit before tax to be at least £9.7 million, up from £1.6 million. Net bank debt has been further reduced to £5.0 million. The company has also successfully launched several technical development projects, including an AI-based inventory forecasting platform and a website AI chatbot, and anticipates continued strong revenue growth into FY27.
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"Strong full-year performance with significant revenue, EBITDA and PBT growth ahead of recently upgraded market expectations"
Gear4music (Holdings) plc ("Gear4music" or "the Group"), the largest UK based online retailer of musical instruments and music equipment, today announces a year-end trading update covering the 12 months to 31 March 2026.
| £m | 12m to 31 Mar 2026 | 12m to 31 Mar 2025 | % Change on FY25 |
| UK sales | 114.1 | 90.2 | +26% |
| European and Rest of the World sales | 76.6 | 56.5 | +36% |
| Total sales | 190.7 | 146.7 | +30% |
| FY26 Highlights* | |||
| · | Revenues reflect sustained growth and market share gains in the UK and across Europe | ||
| · | Gross margin expected to be 28.4% (FY25: 27.0%; FY24: 27.3%) | ||
| · | EBITDA to be not less than £18.1m (FY25: £10.0m; FY24: £9.4m) | ||
| · | Profit before tax to be not less than £9.7m (FY25: £1.6m; FY24: £0.6m) | ||
| · | Net bank debt further reduced to £5.0m at 31 March 2026 having prepaid £3.6m in relation to the new UK warehouse (31 March 2025: £6.4m; 31 March 2024: £7.3m) | ||
| · | Significant technical development projects successfully launched and already supporting growth, including: | ||
| o AI based inventory forecasting and purchasing platform | |||
| o Digital promotions centre | |||
| o Website AI chatbot | |||
| FY27 Outlook and trading update | |||
| · | Strong revenue growth has continued into April 2026 | ||
| · | Lease for new UK warehouse completed on 1 April 2026, as scheduled | ||
| · | Warehouse fit-out progressing on schedule and within budget | ||
| · | FY27 trading to date in line with market expectations | ||
* Prior to this update, Gear4music believes that consensus market expectations were: (i) for the year ended 31 March 2026, revenues of £186.4 million, EBITDA of £17.7 million and profit before tax of £9.3 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.
Gear4music's Executive Chair, Andrew Wass, said:
"We are pleased to report that strong revenue growth continued during Q4 FY26, contributing to an excellent full-year financial performance, driven by the execution of our revised growth strategy announced in June 2024.
Higher revenues and improved gross margins, combined with disciplined cost control, have driven at least an 80% increase in EBITDA in FY26 and a significant improvement in profit before tax to at least £9.7m, up from £1.6m in FY25.
We also note that, despite £3.6m of deposits paid in Q4 FY26 in relation to the fit-out of our new UK warehouse, net bank debt has reduced for a fourth consecutive year to £5.0m. The lease for the new UK warehouse completed as scheduled on 1 April 2026, with fit-out works now underway and progressing on schedule and within budget. The new facility will provide the additional capacity and efficiency required to support future UK growth, and as previously reported the total fit-out costs for FY27 are expected to be £10.2m.
During Q4 FY26, we successfully delivered several significant new technical development projects, including the launch of an AI-based inventory forecasting and purchasing platform, a digital promotions centre enabling more targeted customer incentives, and a website AI chatbot providing product information and advice.
These developments are already supporting further growth. As previously announced, revenue growth accelerated from mid-March 2025 and notwithstanding more challenging year-on-year comparatives, strong revenue growth has continued into April 2026.
Whilst it remains early in the financial year and the Board has not yet made any changes to FY27 forecasts, it remains confident that the business will build on the substantial financial progress achieved in FY26. Trading in FY27 to date is in line with consensus market expectations."
The Group will report Preliminary results for the year ended 31 March 2026 on 23 June 2026.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.