Gear4Music enjoys strong revenue growth
Online musical instrument retailer, Gear4Music, saw its revenue climb by 43% to £12.49 million on a like-for-like basis in the six months to 31 August.
The company, which raised £10 million from its IPO in June, reported that UK revenue surged by 38% while European revenue increased by 62%. Gear4Music also grew its number of active customers by 34.3%.
Sales growth in the first quarter was 40% compared with the corresponding period last year, accelerating to 45% growth in the second quarter following the IPO.
Gross profit climbed by 42% to £3.3 million although Gear4Music reported an underlying net loss for the period, excluding IPO costs, of £497,000.
The company said the revenue growth was driven by "impressive" website visitor traffic and improved conversion rates.
Andrew Wass, Gear4Music chief executive, said: “Since our IPO we have accelerated investment across the business – in the ecommerce platform, in stock and in people – to ensure we are strongly positioned to deliver on our growth strategy.
"The group continues to trade with good momentum and in line with the Board’s expectations and is well placed heading into the key Christmas trading period.”
Gear4Music said it remains committed to the opening of a London showroom and has appointed property agents to identify suitable locations.
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