An online musical instrument retailer, which recently experienced a significant rise in its share price following a return to profitability, has announced plans to achieve revenue exceeding £150 million by 2025.
The company, headquartered in York and listed in London, declared at its Annual General Meeting (AGM) that it is trading ‘in line with expectations.’ It has projected a revenue of £154.7 million and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £11.7 million, as reported.
The retailer also indicated improvements in its financial health. It successfully reduced its net debt and operating costs during the early months of the 2025 financial year. According to the executive chair, Andrew Wass, “We are pleased to report that trading during the financial year to date has been in line with the Board’s expectations. Having successfully reduced our net debt and operating costs during FY24, we have focused on implementing the growth strategy outlined in June and expect this to start delivering results in the second half of this year. We are well prepared operationally for the upcoming seasonal peak trading period, and the Board remains confident of the delivery of our medium and longer-term profitable growth strategy.”
The group plans to release a trading update for the six-month period ending 30 September 2024 on 22 October 2024, followed by half-year results on 19 November 2024.
Shares in the company experienced a surge in August after it announced a return to profitability alongside significant changes at the board level. Despite a five percent decline in sales to £144.4 million for the year ending March 2024, the firm reported a pre-tax profit of £1.1 million, a notable recovery from a loss of £0.4 million the previous year. Additionally, the company disclosed that it had halved its debt, exceeding market expectations. The retailer has a ‘refreshed growth strategy in place, with enhanced product offering and operational efficiency to drive profitable growth’ heading into the new fiscal year.
The online musical instrument retailer is optimistic about its financial trajectory, having made significant strides in reducing debt and improving profitability. The company’s strategic focus on growth and operational efficiency positions it well for achieving its revenue targets by 2025.