(Alliance News) - Gear4music Holdings PLC said Tuesday profit rose in the first half of its financial year, due to a jump in group sales, particularly from the regions outside the UK.
For the six months to the end of September, the musical instruments retailer's gross profit is estimated to increase by 29% to GBP12.4 million from GBP9.6 million for the six months ended August 31 the year before. First half gross margins is predicted to improve to 25.2% from 22.7%
In September 2018, Gear4music changed its financial year end to March 31 from February 28, meaning its interim period would end September 30 instead of August 31.
Group sales rose by 16% to GBP49.4 million, up from GBP42.5 million the prior year, buoyed by a strong performance in and outside the UK, the company said.
Gear4Music's European & Rest of the World segment sales rose by 33% to GBP24.6 million, while the UK market edged upwards by 3% to GBP24.8 million.
As a result of the strong interim period, Gear4music said it is trading in line with its full year earnings before interest, taxes, depreciation and amortisation expectations.
"I am very pleased to report that we have achieved our primary objective for the period of materially improving our gross margins. By cutting out less profitable sales and focusing on higher margin products, we have delivered a first half gross margin of 25.2% and a 29% increase in gross profit," said Chief Executive Andrew Wass.
"Our re-focused growth strategy is now in place and we are confident that the business is effectively configured to achieve a sustainable level of profitable growth seasonal peak," Wass added.
Gear4music will publish its interim results on November 12.
Shares in Gear4music were up 11% at 224.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Gear4music (G4M)