Gear4music Holdings PLC (AIM:G4M) shares dropped 15% after the company said its full-year numbers would undershoot market expectations.
In a trading update for the 12 months to 31 March 2023, the online musical instrument retailer said its revenues would be down marginally at £82mln while underlying earnings (EBITDA) would be in the order of £7.3mln-£7.7mln.
Ahead of Thursday’s announcement, the market consensus suggested turnover would around £155mln and EBITDA £8.9mln.
A small slice of good news came in the form of net debt, which at £14.5mln, was around £3mln lower than market expectations and down £24.2mln at the same point last year.
In the first half hour of trading, the stock was off 13p at 75p, valuing the business at just £16mln. In the last year, the shares have dropped 80%.