Gear4music to float on AIM
Founded in 1995 by chief executive Andrew Wass, the group says its main trading company has been profitable since its launch as Gear4music in 2003. In addition, revenue growth has accelerated in the last two years from £12.3 million in the 2013 financial year to £24.2 million in the year ended 28 February 2015.
In a statement, the group said: “As one of the fastest growing UK based retailers within this sector, the directors believe the group is well positioned to take advantage of a fragmented UK market, and the ongoing shift from high street to online retail across Europe.”
With over 590,000 registered customers, Gear4music increased its like-for like sales by 37% in the 2015 financial year. Having developed its own ecommerce platform, the group operates 19 websites in 15 languages and eight currencies.
Wass said: “Over the last 12 years, we have established ourselves as one of the largest UK based online retailers of musical instruments and music equipment and are well placed to build on the positive momentum we have generated to date, particularly over the last two years, which have seen our revenues almost double and our European business expand significantly.”
Operating from a 135,000 square foot building on the outskirts of York, the group's highest number of orders dispatched in a single day was 4,103 on 15 December 2014. The directors estimate the current premises could provide sufficient capacity to dispatch in excess of 10,000 orders per day.
Wass continued: “We are very excited about this next stage in our development, with our forthcoming flotation on AIM enabling us to develop further our bespoke e-commerce platform, invest in additional marketing initiatives, extend the range of products we stock and open a flagship showroom in central London.”
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