Revenue rise at listed online music retailer
Online retailer of musical instruments and music equipment, Gear4Music, has seen its revenues grow to £120.3m for the 12 months ended 31 March 2020, a two per cent rise on the 13 months to 31 March 2019.
Over the same period gross profits for the listed York-based business rose 16% to £31.2m from £26.9m.
The company achieved a £5.5m increase in EBITDA to £7.8m. And it also recorded pre-tax profits of £3.1m compared to a £0.6m loss last year – a £3.7m improvement.
The number of active customers was up 11% to 807,000.
Andrew Wass, chief executive officer, said: “As a result of the efforts across our team and the excellent commercial and operational progress we have made over the past 12 months I am pleased to report that profits for the year are ahead of the board’s expectations.
“With an increasing number of people throughout the COVID-19 lockdown recognising the benefits that playing, creating and recording music can bring, we have seen a significant increase in demand during this exceptional period.
“Positive sales trends with improved margins have continued into June, and we have also incurred lower marketing costs than we would typically expect.
“The improvements we have made during FY20, and the exceptionally strong trading we have experienced during the lockdown period, mean we are financially stronger and better placed than ever to make the most of future growth opportunities within our market.”
