Gear4music Holdings PLC (AIM:G4M) shares crescendoed higher after the online retailer swung back into profit last year and announced a major boardroom reshuffle.
Although sales fell 5% to £144.4 million in the year to end-March, there was a big key change in the profit line, with cost-cutting improving margins and leading to an adjusted profit before tax of £1.1 million, shifting from a £0.4 million loss.
As well as reporting halving net debt, ahead of market expectations, the AIM-listed group said it has a "refreshed growth strategy in place, with enhanced product offering and operational efficiency to drive profitable growth" in the new financial year.
The board reshuffle, taking effect from next Friday 5 July, will include CEO Andrew Wass moving to executive chair and current operations chief Dean Murray to become CEO.
Current chair Ken Ford and non-executive directors Dean Murray are both retiring, with former Boohoo CFO Neil Catto joining as senior independent director and Venture Life founder Sharon Daly also joining as non-exec.
Shares rose 12% to 150p on Tuesday morning.
Analyst Russ Mould at AJ Bell said: “Gear4music has been singing the wrong notes for investors in recent years, joining the brigade of companies suffering from a post-pandemic growth splutter."
He added: “It appears that the results are strong enough to stick Gear4music on the list of turnaround candidates so don’t be surprised to see more people singing its praises going forward. That’s as long as the latest stroke of good luck is not a one-off.”