Musical instrument retailer Gear4Music has reported a pre-tax loss of £1.04m in the six months to the end of September.
In the same period last year, the York-based listed retailer saw profit of £1.93m and it blamed the recent performance on cost pressures, deteriorating consumer confidence in the face of cost-of-living challenges and a hot summer hampering sales. In an update to investors the firm, which says it is the UK's largest online retailer of musical equipment, reported revenue of £66.3m - a 2% rise on the same period last year.
Gear4Music said it was combatting the headwinds by cost control and working capital management. Measures included focus on stock management and reduction of slower moving product lines that impacted gross margins.
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Andrew Wass, chief executive officer said: "Our FY23 H1 trading results reflect previously reported challenges, including inflationary pressures on our cost base, the cost-of-living crisis affecting consumer confidence, unusually hot weather during the summer months, and comparison to the last of the Covid-enhanced figures in FY22 Q1.
"Whilst we have adapted to the challenges of the last six months, we have also remained focused on our longer-term growth strategy, delivering a wide range of customer centric improvements throughout the business. Progress has included several website upgrades, such as the ability for customers to create their own customised audio packages and cables, extending evening cut-off times for next day delivery, improving our consumer finance proposition, and upgrading our digital downloads sales platform.
"I am pleased to report that we have seen a consistent improvement in trading momentum during the last two months, despite continuing macro volatility. We are also well prepared for our peak seasonal trading period. The board therefore remains confident that results for the full financial year will be in-line with current consensus market expectations."
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