Sales growth at listed music retailer

Online music retailer Gear4music has recorded total sales growth of 42% to £70.2m (FY20 H1: £49.4m) in its half year trading update.

The York-based business says its gross profit increased by 60% from £12.5m in FY20 H1, to £20m.

It also reports strong trading momentum continuing into October ahead of its traditional Christmas peak season.

Chief executive officer, Andrew Wass, said: “I am pleased to report that following an exceptional trading period in Q1 FY21, these strong trading patterns have continued throughout Q2 resulting in revenue growth of 42% for the first half.

“Our customers are continuing to appreciate the benefits that playing and creating music can bring during these difficult times, as well as the continued convenience of ordering our products online.

“Building on the significant progress made during FY20, our focus on gross margin improvement, proportionally lower marketing spend and tightly controlled overhead costs is delivering tangible results.

“Alongside the exceptional period of sales growth during Q1, the outcome will be financial results for H1 FY21 that are materially ahead of last year.

“We are mindful of the uncertainties posed by Brexit and COVID-19, but are confident in the actions we are taking and the ability and commitment of our amazing staff, to ensure that the business is well positioned to overcome any potential short-term challenges.

“As such, the Board is confident results for the full financial year will be ahead of previous consensus market expectations.”

The Group will report Interim results for the six months ending 30 September 2020 on 17 November 2020.