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22 Apr 2021 07:00
22 April 2021
Gear4music (Holdings) plc
Year-End 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 31 March 2021.
£m | 12 months to 31 March 2021 | 12 months to 31 March 2020 | % change |
UK sales | 78.7 | 61.8 | 27% |
Europe and Rest of the World sales | 78.8 | 58.5 | 35% |
Total sales | 157.5 | 120.3 | 31% |
FY21 Highlights *
· Gross margin improved by 360bps to 29.5% (FY20: 25.9%; FY19: 22.8%)
· EBITDA now expected to be not less than £19.0m (FY20: £7.8m; FY19: £2.3m), ahead of current market expectations
· Net cash of £2.4m at 31 March 2021 (net debt at 31 March 2020 and 31 March 2019: £5.5m and £7.5m respectively)
· Signed a new £35m three-year Revolving Credit Facility with HSBC
*Subject to audit. Final results to be announced 22 June 2021.
Gear4music's Chief Executive Officer, Andrew Wass, said:
"I am very pleased to be reporting results that are ahead of our previous expectations, representing a transformational FY21 trading performance for the Group, and building on the significant progress we made in FY20.
Further improvements in gross margins have driven our profits to record levels, amplified by the previously reported exceptional sales growth and marketing efficiencies which were driven by COVID-19 lockdowns, particularly evident during Q1 FY21.
As part of the Group's ongoing strategy, the new enlarged banking facility will help us to accelerate our longer-term ambitions. As we lay the foundations in FY22 for the next stage of our growth journey, in addition to establishing new sales verticals, we will further strengthen our European distribution network, accelerate investment into our e-commerce platform, and consider acquisition opportunities as they arise.
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."
- Ends -
Enquiries:
Gear4music Andrew Wass, Chief Executive Officer Chris Scott, Chief Financial Officer | +44 (0)20 3405 0205 |
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N+1 Singer - Nominated Adviser and Joint Broker Peter Steel/Amanda Gray, Corporate Finance Tom Salvesen, Corporate Broking
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+44 (0)20 7496 3000
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Investec Bank plc - Joint Broker David Flin Alex Wright Harry Hargreaves |
+44 (0)20 7597 5970
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Alma - Financial PR Helena Bogle Harriet Jackson Josh Royston Faye Calow |
+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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