This follows the company, which was founded in 1995, revealing in December that it enjoyed its busiest-ever sales day on Cyber Monday, despatching more than 14,000 orders that day.
In a trading update for the three months to December 31, the company said: “Very strong revenue growth continued through the peak seasonal trading period.”
UK revenues increased 27 per cent, to £37.8million, from £29.7million in the same period last year. Europe and Rest of the World revenues increased 39 per cent, from £19.3 million to £26.8million. The total increase was 32 per cent from £49.0million to £64.6million.
RECOMMENDED READING:
Gross profit increased to £18.7m an increase of £5.0m year-on-year on the same period last year.
The EBITDA for the company’s financial year ending March 31 2026 is now expected to be ahead of consensus market expectations, with EBITDA of not less than £17.7m, the update said.
Furthermore, a 15-year lease has been signed for a new UK warehouse in Sherburn-in-Elmet to increase capacity from 2026. The York warehouse is already running “close to capacity.”
Capital expenditure for the new UK automated warehouse is now expected to be £10.2m in FY27 (April 2026-March 2027) and £8.5m the following year.
Gear4music’s Executive Chair, Andrew Wass, said: “I am pleased to report a very strong third quarter performance, with the Group continuing to deliver significant revenue growth through the peak seasonal trading period.”
Recalling the growing sales and figures, Mr Wass also said: “The Board is encouraged by the quality of this cash-generative growth, which has translated into profitability ahead of consensus market expectations for the full financial year.”
He added: “While the macro-economic and consumer environment remains uncertain, the Group continues to deliver strong momentum and improving profitability, supported by a clear and disciplined strategy for sustainable growth.
“Given the continued strength of trading and the benefits of the revised capital expenditure profile, the Board has upgraded its expectations for FY26, FY27 and FY28.
“The Board would like to thank all our colleagues across the business for their continued commitment and hard work, which have been instrumental in delivering this performance.”
Gear4Music added that prior to the release of the update, it believed consensus market expectations for the year ending 31 March 2026 are revenues of £182.5 million, EBITDA of £16.7 million and profit before tax of £8.3 million, and for the year ending 31 March 2027 are revenue of £188.0 million, EBITDA of £14.4 million and profit before tax of £4.1 million.
