Gear4music hails ‘transformational’ year
Gear4music has increased its full year sales by 31% to £157.5 million after it benefited from more people playing musical instruments during Covid-19 lockdowns.
While sales in the UK jumped by 27% in the 12 months to 31 March, sales in Europe and the rest of the world were also strong with an uplift of 35%.
The online retailer now expects its full year EBITDA to come in ahead of market expectations at not less than £19 million. This compares to £7.8 million in the previous year.
Gear4music chief executive Andrew Wass (pictured) 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.”
During the year, Gear4music signed a new £35 million three-year revolving credit facility with HSBC. The company said this will be used to accelerate its growth strategy which will include strengthening its European distribution network, investing in its ecommerce platform and considering acquisition opportunities as they arise.
Looking ahead, Wass said: “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.”
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