Retailer continues to hit the right notes
The chief executive of online music retailer, Gear4Music, Andrew Wass will tell shareholders today that the group’s full year results will likely be better than its recently upgraded expectations.
Wass will say, “Following the exceptional period of revenue growth during Q1 FY21, I am pleased to report that trading has remained strong throughout July and August, with the Group continuing to generate improved margins alongside proportionally lower marketing costs compared to the same period in the prior year.
“Whilst still relatively early in the current financial year, the Board remains confident that results for the full year will be at least in line with our recently upgraded expectations.”
This statement which will be made at today’s AGM, follows the news in July that the firm expects its profits for the current year, to March 2021, will be “meaningfully ahead” of its previous forecasts.
In the three months to June, revenues increased by 68% to £37.3m – adding £1m-a-week in sales.
This announcements of the firm’s success have seen investors respond well closing on Friday at 565p was 101% higher than its pre-lockdown peak in February, giving the company a market value of nearly £120m.
The York-based retailer is building on strong foundations, having turned a £0.6m pre-tax loss in 2019 into a £3.1m profit in the year to March.
Its revenues had been nearly evenly split between the UK and international, but an 80% increase domestically in the last quarter has shifted this closer to 60-40.
