Gear4music (LSE:G4M) has reported a 6% increase in revenue to £85.4 million for the six months ended 30 September 2026, with growth across its UK and international operations.
The online musical instruments and equipment retailer said trading was in line with board expectations despite challenging comparative figures and continued pressure on discretionary consumer spending.
UK revenue increased by 3% during the period, while sales in Europe and the Rest of World rose by 11%, reflecting faster growth across the group’s international markets.
Gross profit is expected to reach £23.6 million, although earnings before interest, tax, depreciation and amortisation (EBITDA) are forecast to decline to £5.7 million.
The company attributed the reduction in EBITDA to previously announced setup costs associated with its new automated UK warehouse.
The investment forms part of Gear4music’s efforts to develop its distribution infrastructure and improve its operational capabilities.
Alongside the warehouse project, the group continues to invest in its proprietary e-commerce platform, which supports online sales across multiple countries and currencies.
Gear4music operates distribution facilities in the UK and Europe, including locations in Sweden, Germany, Ireland and Spain.
The company sells musical instruments, audio equipment and related products through its own brands and third-party manufacturers, serving customers in more than 190 countries.
Management said the first-half trading performance remained consistent with its expectations, with the important seasonal peak trading period still ahead.
The board maintained its full-year outlook and continues to expect financial performance to be in line with current market consensus.
No revised full-year revenue or profit figures were provided in the supplied trading update.
For investors, the results highlight revenue growth across both domestic and international markets, alongside the short-term impact of investment in logistics infrastructure on operating earnings.
The difference between revenue growth and the expected reduction in EBITDA reflects the additional costs associated with establishing the automated warehouse.
The company’s ability to manage these costs while maintaining sales growth will remain relevant to its profitability as the new facility becomes operational.
Looking ahead, investors will be monitoring performance during the peak trading season, progress with the warehouse project and whether full-year results meet market expectations.
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