Gear4music (Holdings) PLC Trading Update (6213Q)
October 22 2019 - 2:00AM
UK Regulatory
TIDMG4M
RNS Number : 6213Q
Gear4music (Holdings) PLC
22 October 2019
22 October 2019
Gear4music (Holdings) plc
Trading Update
Gear4music (Holdings) plc ("Gear4music" or "the Group"), the
largest UK based online retailer of musical instruments and music
equipment, today announces a trading update for the six months to
30 September 2019.
GBPm 6 months to 30 6 months to % change
September 2019 31 August 2018
UK sales 24.8 24.0 +3%
---------------- ---------------- ---------
European and Rest
of the World sales 24.6 18.5 +33%
---------------- ---------------- ---------
Total sales 49.4 42.5 +16%
---------------- ---------------- ---------
Highlights
-- Total sales growth of 16% to GBP49.4m (FY19 H1: GBP42.5m)
-- Gross margin improved by 250bps to 25.2% (FY19 H1: 22.7%)
-- Gross profit increased by 29% from GBP9.6m to GBP12.4m
Gear4music's Chief Executive Officer, 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.
We have restored our gross margins to FY18 levels whilst at the
same time continuing to grow our revenues and taking market share.
International sales growth continues to be strong, and whilst the
UK market remains highly competitive, we have returned to a more
profitable margin structure and believe that this is the right
strategy from which to grow our revenues going forward.
Our warehousing and infrastructure teams have worked tirelessly
during the year to ensure we have a robust logistics operation in
place ahead of our peak FY20 H2 trading period, and we are
confident that we now have the capacity and efficiency required to
make the most of the opportunities available to us.
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. As such, we continue to
trade in line with our full year EBITDA expectations as we head
towards our seasonal peak."
The Group will report interim results for the six months ending
30 September 2019 on 12 November 2019.
Note: references to FY20 H1 represent the period 1 April 2019 to
30 September 2019, following the change to the accounting reference
date and financial year end from 28 February to 31 March, with FY19
H1 representing the period 1 March 2018 to 31 August 2018.
- Ends -
Enquiries:
Gear4music
Andrew Wass, Chief Executive Officer
Chris Scott, Chief Financial Officer +44 (0)20 3865 9668
N+1 Singer - Nominated Adviser and Broker
Peter Steel/Justin McKeegan, Corporate
Finance
Tom Salvesen, Corporate Broking +44 (0)20 7496 3000
Alma - Financial PR +44 (0)20 3405 0205
Rebecca Sanders-Hewett gear4music@almapr.co.uk
Helena Bogle
About Gear4music.com
Operating from a Head Office in York, and Distribution Centres
and showrooms in York, Sweden and Germany, the Group sells
own-brand musical instruments and music equipment alongside premium
third-party brands including Fender, Yamaha and Roland, to
customers ranging from beginners to musical enthusiasts and
professionals, in the UK, Europe and, more recently, into the Rest
of the World.
Having developed its own e-commerce platform, with multilingual,
multicurrency websites delivering to over 190 countries, the Group
has rapidly expanded its database and continues to build its
overseas presence.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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