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Published on: October 19, 2023

H1 trading prioritising gross margin and cost savings ahead of revenue growth

The shape of G4M’s trading performance in H1 (to 30 September) clearly reflects the strategic prioritisation of gross margin and cost efficiencies over revenue growth in a challenging market. This strategy was clearly signposted at the FY23 results in June. While total revenue fell back 6% in the period (£62.6m vs £66.3m), an offsetting 80bps gross margin improvement holds the expected gross profit decline to 3% (£17.0m vs £17.4m). With H2 set to benefit from the £4m of annualised cash savings instigated in H1, G4M believes that the FY24E full-year outlook is in line with consensus market expectations.

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