Gear4music Holdings PLC (AIM:G4M) blared out a profit warning after difficult trading conditions impacted music instrument sales.
Revenue for the year to end-March 2023 is now expected to be around £155mln, down from market expectations of £163.9mln, with EBITDA of £9mln, compared to market estimates of £11.9mln.
The online retailer of musical instruments said it achieved sales growth during first quarter, although inflationary pressures are constraining operating margins and the consumer environment was said to be weaker.
However, trade during July and August was hit by the "cost of living crisis and unusually hot weather", it said in a statement ahead of its annual general meeting.
And though a return to a "normalised seasonal trading pattern" is expected, chief executive Andrew Wass said, "given the lack of visibility over the timing of any improvement in consumer sentiment and wider macroeconomic conditions as we approach second half, we believe it is now prudent to moderate our full year expectations accordingly."
A more detailed trading update relating to the half-year to September 30 will be announced next month, followed by a half-year report in November.
Shares were 12% lower at 117p by mid-morning.