By Michael Susin
Shares of Gear4Music (Holdings) PLC fell nearly 21% in early trade Tuesday after the company lowered its guidance for fiscal 2022, blaming supply-chain issues, and reported a fall in first-half pretax profit.
The U.K.-based online retailer of musical instruments and music equipment said it is performing below full-year consensus market expectations because of the persistence of Brexit-related supply-chain issues and slower-than-expected European sales for the third quarter.
The company said it now expects full-year earnings before interest, taxes, depreciation and amortization to be not less than 12 million pounds ($16.1 million), compared with GBP18.9 million the year before. The company last month had said it was in line with guidance for Ebitda of GBP14 million.
Gear4Music made a pretax profit of GBP1.9 million for the six months ended Sept. 30, compared with GBP5.8 million. Revenue fell to GBP64.7 million from GBP70.2 million, it said.
Ebitda fell to GBP4.8 million from GBP8.5 million, it said.
Shares at 0822 GMT were down 165.0 pence at 635.0 pence
Write to Michael Susin at [email protected]
