Gear4music PLC said on Tuesday that it had swung to a yearly loss, but trimmed net debt and increased its revenue.

The online musical instruments and equipment retailer said it swung to a pretax loss for the year ended March 31 of £407,000, from a profit of £5.0 million the previous year.

Gear4music said this was partially caused by administrative expenses rising 7.8% to £38.7 million from £35.9 million the previous year, and financial expenses increasing 55% to £1.7 million from £1.1 million.

Revenue edged up 3.0% to £152.0 million from £147.6 million the prior year. Earnings before interest, tax, depreciation, and amortisation fell 34% to £7.4 million from £11.2 million the prior year.

Net debt was reduced to £14.5 million, down from £24.2 million the previous year.

‘Market conditions have continued to be challenging since our last update in April, and we are taking the appropriate and necessary actions to ensure our business is correctly configured, resourced and positioned strategically for long term success,’ said Chief Executive Officer Andrew Wass.

The company did not declare a dividend, stating that it did not consider it appropriate at this point, as it recognised the importance of generating and retaining cash reserves.

‘The board is confident that the group’s customer proposition, enhanced operational infrastructure and balance sheet will enable the Group to achieve its long-term business objectives, namely taking market share and delivering operational efficiencies providing the platform for profitable growth,’ said Gear4music.

Shares in Gear4music were down 8.3% at 94.00 pence in London on Tuesday morning.

Copyright 2023 Alliance News Ltd. All Rights Reserved.