FY26 results from online musical instruments retailer Gear4music (LON:G4M) hit all the right notes, sending the shares higher in early dealings. The guitars-to-microphones seller’s outlook statement also struck a confident tone.
Double-digit sales growth has persisted into FY27, demonstrating the York-based group continues to grab market share.
Music to investors’ ears
Results for the year to March 2026 came in a smidge ahead of recently upgraded guidance. Pre-tax profits jumped £8.5 million to £10.3 million on sales up 30% to £190.7 million as Gear4music benefited from strategic and operational progress and the demise of competitors.
During the year, two established UK rivals and a number of smaller local operators ceased trading and exited the market. Gear4music also found the going a bit easier in Europe following the bankruptcy of a leading competitor in March 2025.
Gear4music drummed up 36% growth in international revenue to £76.6 million, while UK sales rose 26% to £114.1 million. And despite increased inventory investment and paying £3.1 million in deposits relating to a new warehouse near York, net debt fell for the fourth consecutive year to £5 million.
Going for growth
‘Gear4music has enjoyed its most successful year since its FY21 annus mirabilis, when Covid-driven lockdowns prove to be a major catalyst for musical equipment and instruments,’ noted Progressive Equity Research.
‘The fact that this has been achieved in more ordinary and less tumultuous times suggests meaningful shifts in both the market backdrop and indeed the group’s operational and commercial capabilities.’
Singer Capital Markets said: ‘Gear4music has delivered double-digit revenue growth in FY27 to date despite more challenging comparatives and increased macro uncertainties at home and abroad.’
Discretionary spending remains under pressure. Yet Gear4music’s revenue growth proved consistently strong through FY26 with quarterly growth of 27%, 34%, 32% and 26% sequentially from Q1 to Q4.
A positive start to FY27 against strong prior-year comparatives suggests the recent upgrade cycle could have further to run.
Gear4music is delivering profitable market share gains at home and abroad. And the AIM-listed company continues to invest for future growth, including in new UK warehousing capacity ahead of Christmas.
The firm is also reaping the benefits of AI, which management sees as an opportunity rather than a threat in terms of consumer demand for musical instruments. Gear4music is investing in technology to gain and retain customers whilst delivering efficiencies. It is reaping the benefits from the launch of an AI-based inventory forecasting and purchasing platform as well as an AI-powered website chatbot.
Read the press release here: https://www.gear4musicplc.com/investors/
