Gear4music posts half year revenue growth
Online musical instruments retailer Gear4music has seen a strong increase in half year revenue after trading was boosted by international sales growth, rising website traffic and improving conversion rates.
In the six months to 31 August, UK revenue climbed by 30% to £17.9 million while international revenue surged by 70% to £13.3 million.
Meanwhile, gross profit was up 36% to £7.8 million.
Andrew Wass, Gear4music chief executive, said: “I am very pleased with these results which combine tangible strategic and commercial progress with 44% revenue growth, which was ahead of our expectation for H1 as indicated at the start of the year, equating to two-year growth of 150%.
“Revenue growth in our core UK market continues to be strong, alongside a very strong performance in our international markets, supported by our new distribution centres that have improved our scale and customer proposition across Europe.”
During the period, the number of active customers grew by 44%.
Gear4music has just launched a US website which it says marks an important stepping stone in its plans for growth outside of Europe.
Wass added: “As highlighted in previous announcements, we expected increased operational costs and investment in our customer proposition to restrict profitability during H1, but we are well prepared for a busy seasonal period and the group continues to trade in line with the board’s expectations for the full year.”
