Gear4music reports higher first-half revenue as warehouse costs weigh on EBITDA

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Gear4music H1 revenue report

Highlights

Gear4music's first-half revenue increased 6% to £85.4 million, with UK up 3% to £51.0 million and Europe/ROW up 11% to £34.4 million.
EBITDA is expected at £5.7 million versus £6.5 million last year, impacted by new automated UK warehouse setup costs despite gross profit rising to £23.6 million.
The company reaffirms FY2027 consensus targets of £200.2 million revenue and £16.0 million EBITDA, underpinned by international sales growth and ongoing e-commerce investment.

First-half trading and outlook

As reported by London Stock Exchange, citing the London Stock Exchange Regulatory News Service, Gear4music says revenue for the first half reaches £85.4 million, up 6% from £80.7 million in the same period a year earlier. UK revenue rises 3% to £51.0 million, while revenue from Europe and the rest of the world increases 11% to £34.4 million.

Gross margin is expected to be 27.6%, slightly below 28.0% in FY26 H1, while gross profit is expected to increase to £23.6 million from £22.6 million. EBITDA is anticipated at £5.7 million, compared with £6.5 million a year earlier, reflecting setup costs linked to the new automated UK warehouse.

The group says it expects financial performance for the year ending 31 March 2027 to meet consensus market expectations, including revenue of £200.2 million and EBITDA of £16.0 million. It plans to publish interim results for the six months ended 30 September 2026 on 17 November 2026.

Investment focus and regional sales mix

Executive Chair Andrew Wass says the company continues to deliver revenue and gross profit growth in the first half while investing in its e-commerce platform and operational capabilities. The spending is aimed at supporting sustainable and profitable growth as the retailer expands its fulfilment capacity and online operations.

The sales mix indicates stronger momentum outside the domestic market, with international operations outpacing the UK business during the period. That trend highlights the importance of European and wider overseas demand to the company’s growth profile, even as near-term operating profit is affected by warehouse implementation costs.

In our earlier coverage of Wipro’s Q2 results, we noted that the company beat revenue expectations as spending from European clients began to recover after a period of tighter tech budgets. We also highlighted how AI-related services were starting to generate new revenue streams, supporting growth alongside traditional outsourcing work.

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