Come on Andrew Waas17 Jan 2019 14:37
"Whilst there was an improvement in margins in the period compared to the first half of financial 2019, these capacity constraints prevented further sales growth compensating for the lower gross margins and, as a result, the board now expects financial 2019 earnings before interest, tax, depreciation, and amortisation to be slightly below financial 2018 levels."
In its financial year ended February 2018, Gear4music posted Ebitda of GBP3.5 million, down 4% year-on-year.
"Our focus has been on gaining market share in what has been a highly competitive environment, and in support of this target and following a period of planned investment, margins during the period began to return towards historical levels," said Chief Executive Andrew Wass.
"We are confident of further improvements as we progress through financial year 2020."
"We remain confident our approach of building a larger business as quickly as possible will put us in a strong position, as the market undergoes further consolidation going into financial 2020 and beyond," Wass continued.
"We will also continue to invest in building scale and improving our customer proposition with planned investment in our logistics, systems, products and websites. We have a clear strategy of targeted expansion and remain confident of the continued long-term growth opportunity alongside an expectation of a return to increasing profitability."
By George Collard; georgecollard@alliancenews.com
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