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22 Oct 2020 07:00
22 October 2020
Gear4music (Holdings) plc
Half Year Trading Update
Gear4music (Holdings) plc ("Gear4music" or "the Group"), the largest UK based online retailer of musical instruments and music equipment, today announces a trading update for the six months to 30 September 2020.
£m | 6 months to 30 September 2020 | 6 months to 30 September 2019 | % change |
UK sales | 36.7 | 24.8 | +48% |
European and Rest of the World sales | 33.5 | 24.6 | +36% |
Total sales | 70.2 | 49.4 | +42% |
Highlights
· Total sales growth of 42% to £70.2m (FY20 H1: £49.4m)
· Gross margin improved by 330bps to 28.5% (FY20 H1: 25.2%; FY19 H1: 22.7%)
· Gross profit increased by 60% from £12.5m in FY20 H1, to £20.0m
· Strong trading momentum has continued into October ahead of our traditional Christmas peak season
Gear4music's Chief Executive Officer, Andrew Wass, said:
"I am pleased to report that following an exceptional trading period in Q1 FY21, these strong trading patterns have continued throughout Q2 resulting in revenue growth of 42% for the first half. Our customers are continuing to appreciate the benefits that playing and creating music can bring during these difficult times, as well as the continued convenience of ordering our products online.
Building on the significant progress made during FY20, our focus on gross margin improvement, proportionally lower marketing spend and tightly controlled overhead costs is delivering tangible results. Alongside the exceptional period of sales growth during Q1, the outcome will be financial results for H1 FY21 that are materially ahead of last year.
Strong growth in sales and gross profits has continued during October, and preparations for what we expect to be a busy peak trading period are well advanced.
We are mindful of the uncertainties posed by Brexit and COVID-19, but are confident in the actions we are taking and the ability and commitment of our amazing staff, to ensure that the business is well positioned to overcome any potential short-term challenges. As such, the Board is confident that results for the full financial year will be ahead of previous consensus market expectations."
The Group will report Interim results for the six months ending 30 September 2020 on 17 November 2020.
- Ends -
Enquiries:
Gear4music Andrew Wass, Chief Executive Officer Chris Scott, Chief Financial Officer | +44 (0)20 3865 9668 |
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N+1 Singer - Nominated Adviser and Broker Peter Steel/Amanda Gray, Corporate Finance Tom Salvesen, Corporate Broking |
+44 (0)20 7496 3000
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Alma - Financial PR Rebecca Sanders-Hewett Helena Bogle Harriet Jackson |
+44 (0)20 3405 0205 gear4music@almapr.co.uk |
About Gear4music.com
Operating from a Head Office in York, and Distribution Centres and showrooms in York, Sweden and Germany, the Group sells own-brand musical instruments and music equipment alongside premium third-party brands including Fender, Yamaha and Roland, to customers ranging from beginners to musical enthusiasts and professionals, in the UK, Europe and, more recently, into the Rest of the World.
Having developed its own e-commerce platform, with multilingual, multicurrency websites delivering to over 190 countries, the Group continues to build its overseas presence.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
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