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2 Mar 2018 07:00
2 March 2018
Gear4music (Holdings) plc
Trading Update
Gear4music (Holdings) plc ("Gear4music" or "the Group"), the largest UK based online retailer of musical instruments and music equipment, today announces a year-end trading update covering the 12 months to 28 February 2018.
£'000 | 12 months to 28 February 2018 | 12 months to 28 February 2017 | % change |
UK sales | 44,258 | 34,865 | +27% |
European and Rest of the World sales | 35,842 | 21,263 | +69% |
Total sales | 80,100 | 56,128 | +43% |
Highlights
· 43% increase in total revenue following continuing strong growth in the UK and Europe
· Conversion across all websites improved from 2.75% to 3.25%
· Active customer numbers increased by 39% over the year to 474,600
· Own-brand sales growth kept pace with Other-brand growth
Gear4music's Chief Executive Officer, Andrew Wass, said:
"We are very pleased to have grown our revenues from £56m last year to £80m this year, particularly given the heightened economic uncertainty that has impacted many retailers during the last 12 months.
As previously communicated, in 2017 we focused on scaling-up our business to ensure we have the capacity for further growth, investing into our European distribution centres, our new Head Office in York, and expanding our platform development capability.
EBITDA for the second half of FY18 will be ahead of the six-month period ended 28 February 2017, although as a result of the investments we have made during the year into our customer proposition, infrastructure, staff, systems and marketing, we expect EBITDA for the full financial year ended 28 February 2018 to be in line with our FY17 result.
We are confident that we are well placed to significantly grow both revenues and profitability during the next 12 months, as margins normalise, and the up-front investments we have made clearly demonstrate their ongoing value to the business."
The Group will report results for the financial year on 15 May 2018.
- Ends -
[1] Active customers are customers of the Group who have purchased item(s) at least once in the last year
For further information, please contact
Gear4music +44 20 3128 8100
Andrew Wass, Chief Executive Officer
Chris Scott, Chief Financial Officer
Panmure Gordon +44 20 7886 2500
(Financial Adviser, Nominated Adviser and Broker)
Andrew Godber / Peter Steel - Investment Banking
Erik Anderson / Tom Salvesen - Corporate Broking
MHP Communications (Financial PR) +44 20 3128 8100
Simon Hockridge
Pete Lambie
Background to Gear4music
Operating from a Head Office in York, showrooms in York and Sweden, and Distribution Centres in York, Sweden and Germany, the Group sells own-brand musical instruments and music equipment alongside premium third-party brands including Fender, Yamaha and Gibson, 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 and fully responsive design websites delivering to over 190 countries, the Group has rapidly expanded its database and 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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