Gear4music posts half year sales and profit growth
Musical instruments retailer Gear4music grew its total sales by 16% to £49.4 million in the six months to 30 September.
While sales in the UK edged up 3% to £24.8 million, international sales climbed by 33% to £24.6 million.
Gross profit also improved, increasing by 29% from £9.6 million to £12.4 million.
During the period, Gear4music benefited from a more profitable margin structure.
Gear4music’s chief executive Andrew Wass said: “I am very pleased to report that we have achieved our primary objective for the period of materially improving our gross margins. By cutting out less profitable sales and focusing on higher margin products, we have delivered an FY20 H1 gross margin of 25.2% and a 29% increase in gross profit.”
The company also said that it is continuing to trade in line with its full year EBITDA expectations as it heads towards the festive trading period.
Wass added: “Our re-focused growth strategy is now in place and we are confident that the business is effectively configured to achieve a sustainable level of profitable growth.”
