Music Retailer Sees Profit Decline Amid Sales Growth

  • Gear4music reports a loss of £600K despite a 48% increase in revenue
  • EBITDA declines to £2.3m, down from £3.5m in 2018
  • UK sales up 36%, international sales up 47%
  • CEO Andrew Wass confident in growth and profit improvements in FY20

Music equipment and instrument retailer Gear4music has reported a loss before tax of £600,000 for the 13 months ended 31 March 2019. Despite this, revenue increased by 48% to £118m compared to £80m in the previous year. The retailer’s EBITDA declined to £2.3m, a drop of £1.2m from 2018. Gear4music had earlier warned that profit for 2019 would be slightly below last year’s results amid a 41% year-on-year sales growth, with sales reaching £48.7m. The group also announced UK sales rising by 36% to £25.5m and international sales increasing by 47% to £23.2m. CEO Andrew Wass expressed confidence in achieving objectives of maximizing customer satisfaction and delivering value to shareholders through a focus on improving gross margins and operational infrastructure.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Gear4music’s financial performance, including losses, EBITDA decline, revenue increase, sales growth in different regions, and the CEO’s confidence in future improvements.
Noise Level: 3
Noise Justification: The article provides relevant information about the company’s financial performance and the CEO’s confidence in future growth, but it lacks detailed analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Gear4music’s financial performance impacts its stock price and investor sentiment.
Financial Rating Justification: The article discusses the company’s financial results, including losses before tax, EBITDA decline, and revenue growth. This information is relevant to investors and can affect the company’s stock price and market sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk