Online retailer amplifies profit
Online retailer Gear4music has seen sales increase by 31% in the 12 months to 31 March in what it describes as a “transformational” trading performance.
In its year end trading update the music instruments and equipment specialist said it expects its EBITDA for the year to be “not less than £19m” more than double the figure for the 2020 financial year and almost 10 times the size of 2019.
This update, which is the second time the York-based business has increased its guidance in recent months on earnings, also highlights an improved gross margin rising to 29.5%.
Gear4music’s chief executive officer, Andrew Wass, said: “I am very pleased to be reporting results that are ahead of our previous expectations, representing a transformational FY21 trading performance for the Group, and building on the significant progress we made in FY20.”
He added the “improvements in gross margins have driven our profits to record levels” and been “amplified by exceptional sales growth and marketing efficiencies which were driven by Covid-19 lockdowns”.
Looking ahead the chief executive said: “As we lay the foundations in FY22 for the next stage of our growth journey, in addition to establishing new sales verticals, we will further strengthen our European distribution network, accelerate investment into our e-commerce platform, and consider acquisition opportunities as they arise.
“Whilst it is still very early in the new financial year, we are pleased with FY22 trading to date, relative to the exceptional period of trading during April FY21.
“The board is confident that our online business model and specialist market knowledge, supported by our Europe-wide operational platform, will continue to deliver long-term sustainable and profitable growth.”
