Gear4music expects to beat FY revenue expectations

(Sharecast News) - Online musical equipment retailer Gear4music said it had experienced strong trading in the first quarter and now expects full-year figures to be ahead of expectations.

Gear4music said the Covid-19 lockdowns had created an "exceptionally strong" period of trading for the group during April and May, with further strong trading in June leading to total first-quarter revenue growth of 68% year-on-year to £37.3m.

UK sales were up 80% to £21.2m, while Europe and rest of world sales were 55% higher at £16.1m.

Chief executive Andrew Wass said: "The strong trading momentum has continued into July, and we continue to achieve higher gross margins and with a lower marketing cost than we would typically expect, alongside a controlled cost base.

"As a result, and whilst still early in the current financial year, the Board is confident that a significant improvement in profits will be achieved for the full financial year, which are now expected to be meaningfully ahead of our previous expectations."

As of 1020 BST, Gear4music shares had shot up 21.98% to 494p.