Gear4Music has reported a return to revenue growth as its new growth strategy begins to pay off.
The online music retailer achieved a 1% increase in revenue in its second quarter, while total revenue for the six months to 30 September dipped 1% to £61.7m,
In June, Gear4Music launched a strategy aimed at returning to profit by 2024. It reported a pre-tax profit of £0.6m for the year ending March 2024, a turnaround from a £0.4 million loss the previous year.
For the first half of FY25, the business expects a pretax loss of £1.2m, reflecting a £0.7 m improvement from the same period last year.
It noted “significant traction” in its second-hand sales platform and anticipates continued growth in this area throughout the year.
The company also highlighted stronger performance in October, maintaining a full-year outlook aligning with market expectations.
It comes after Gear4music recently acquired audio equipment business Studiospares, as it expanded its own-brand portfolio.
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Gear4music executive chair Andrew Wass explained: “We are pleased to report good progress in executing the growth strategy we announced in June, with a return to growth in FY25 Q2 and further growth momentum during October trading to date.
“We are also pleased to have further reduced our net debt, and improved our overall profitability compared with the same period last year.”
He continued: “This performance comes despite initial challenges with the rollout of a new AI-based marketing system during H1, which temporarily increased marketing costs and impacted the sales mix between our own-brand and other-brand products and our European sales.
“These issues have now been resolved, and our marketing investments have stabilised.”
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