Transformational year at online music retailer as profits up £11m
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Online music retailer Gear4music has seen its revenues rise by nearly a third in its audited results for the year ended 31 March 2021 – attributing its success to its ability to pick up extra custom during lockdown.
It recorded revenues of £157.5m for the period, up 31% from the previous year’s figure of £120.3m, with the York-based company noting it intends to continue its European expansion.
The company also saw pre tax profits rise by over £11m to £14.6m and EBITDA up by 154% to £19.8m, ahead of consensus market expectations.
Andrew Wass, chief executive officer, said: “FY21 has been a transformational year for the Group, during which we have delivered an exceptional financial performance whilst rising to the unprecedented operational challenges presented by Covid-19 and Brexit.
“We had an exceptional period of trading during FY21, particularly during the initial Covid-19 lockdown in Q1.
“The number of potential customers in our market significantly increased, as traditional high street retailers were unable to operate as normal and people sought activities in which to participate whilst spending more time at home.
“The Group is in a strong position to build upon the significant success of FY21, as we accelerate the development of our bespoke e-commerce platform and strengthen our European distribution network by launching new operational hubs in Ireland and Spain.
“We have started to consider acquisition opportunities, and we are very pleased to have recently acquired two brands that will become part of the Gear4music own-brand portfolio: Premier, a Drums and Percussion brand with a rich musical heritage dating back to 1922, and Eden, a Bass guitar amplification brand previously owned by Marshall Amplification.”
However despite the positive performance of the year, Wass added that the Board does not expect to meet the same level of trading during half one FY22, due as to the previous years exceptional financial performance being driven by the initial Covid-19 lockdowns during half one.
He added that the business also doesn’t currently expect to achieve the same level of full year profitability during FY22, noting: “Trading in Q1 FY22 has been stronger than the Board previously expected and, having retained a good proportion of the gross margin gain achieved during FY21, financial results for FY22 are likely to be ahead of the Board’s previous expectations.”