Gear4Music PLC - York-based online musical instruments and equipment retailer - Sales in the financial half-year that ended September 30 total GBP64.7 million, down 7.8% from GBP70.2 million a year before, though still up 31% from 2019. In the UK, sales retain their pandemic boost, holding steady at GBP36.7 million, which is up 48% from 2019. However, in Europe and Rest of World, sales fall by 16% to GBP28.0 million from GBP33.5 million a year ago, though remain up 14% from 2019. Gear4music blames "post Brexit challenges" for the European sales decline, saying it open new European distribution centres last month in response.
Gross profit in the recent six months is GBP18.1 million, down from GBP20.1 million a year ago but up from GBP12.5 million two years ago, as gross margins hold firm at 28.0%, versus 28.6% last year and 25.2% in 2019.
Gear4music says full-year to be in line with consensus expectations for pretax profit of GBP7.3 million on revenue of GBP156.6 million. This compares to GBP14.6 million in profit on revenue of GBP157.5 million in financial 2021. Increases its on-hand stock to minimise the impact of shipping bottlenecks.
"We are pleased to report that trading during FY22 H1 has been in line with the board's expectations which, as previously reported, was not expected to meet the same level of trading as during the exceptional FY21 H1 period that was significantly enhanced by COVID lockdowns," says Chief Executive Officer Andrew Wass.
Current stock price: 830.00 pence, up 11% on Wednesday
Year-to-date change: up 1.2%
By Tom Waite; thomaslwaite@alliancenews.com
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Gear4music (G4M)