Gear4music FY sales surge amid pandemic

(Sharecast News) - Musical equipment retailer Gear4music said on Thursday that annual sales had surged across the group in the twelve months ended 31 March.
Gear4music now expects full-year underlying earnings to be no less than £19.0m, a significant improvement on the prior year's figure of £7.8m and ahead of current market expectations.

The AIM-listed group saw total sales pick up 31% at £157.5m, with UK sales improving 27% to £78.7m and Europe and Rest of the World sales 35% higher at £78.8m.

In addition to the "exceptional sales growth", gross margins improved by 360 basis points to 29.5%, helping drive profits to record levels, as did marketing efficiencies.

Chief executive Andrew Wass said: "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. We also remain mindful of the ongoing global pandemic and operational challenges posed by Brexit, but are confident that we have appropriate plans in place to mitigate their effects.

"Underpinned by our strong financial position, 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."

As of 0915 BST, Gear4music shares were up 6.36% at 845.55p.