Gear4Music Holdings PLC on Tuesday said it successfully slashed debt and returned to profit.

The York, England-based company is the largest UK-based online retailer of musical instruments and music equipment.

In the year that ended March 31, the company swung to a £584,000 pretax profit from a £407,000 pretax loss the previous year.

Operating profit doubled to £2.8 million from £1.3 million, while revenue declined 5.0% to £144.4 million from £152.0 million.

The board continues to pay no dividend and will instead utlise cash reserves to support future growth.

Chief Executive Officer Andrew Wass said: ‘The group has also delivered on another strategy priority with net debt reducing to £7.3m as of 31 March 2024, almost halving since 31 March 2023’.

Interest-bearing loans and borrowings were reduced to £12.0 million, down 37% from £19.0 million.

‘Having delivered the key objectives we set ourselves at the beginning of FY24, the group is well positioned to relaunch its profitable growth strategy for FY25. This will focus on expanding sales verticals and channels to market whilst further enhancing and leveraging our unique bespoke e-commerce platform and product offering,’ Wass said.

Looking ahead, Gear4Music believes it will deliver profitable growth and maintain its leading position in the UK and European markets.

The company noted that while current consensus market expectations foresee pretax profit of £2.8 million in financial 2025, these figures do not take into account any foreign exchange gains or losses.

Gear4Music shares were up 11% to 149.00 pence each in London on Tuesday morning.

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