- Half-year revenue up 31% to £80.7 million as sales accelerate across all regions
- EBITDA more than doubles to at least £6.5 million, with margins improving
- Full-year profit forecast raised for the third time this year
Gear4music Holdings PLC (AIM:G4M) shares jumped 12% in early trading after the online music retailer raised its profit outlook again, following a strong first half marked by surging sales and higher margins.
Revenue for the six months to 30 September rose 31% to £80.7 million, with both UK and international sales growing at the same pace. Growth gathered speed through the period, accelerating from 27% in the first quarter to 34% in the second.
The company said gross margin is expected to reach at least 28%, up from 26.7% a year earlier, while earnings before interest, tax, depreciation and amortisation (EBITDA) will be no less than £6.5 million, more than double last year’s £2.9 million.
The York-based group, which sells instruments and audio equipment online, said its refreshed growth strategy, including sharper marketing, improved stock levels and stronger European operations, was driving the turnaround.
Chair Andrew Wass said the momentum built through the first half “reflects the clear benefits of our enhanced marketing capabilities and better inventory availability, alongside a more favourable competitive environment.”
The company now expects full-year EBITDA of at least £13.7 million, up from the previous consensus estimate of £12 million. It marks Gear4music’s third profit upgrade in five months as trading continues to exceed expectations.
Although the key Christmas period remains ahead, the group said its year-to-date performance had given the board confidence in its ability to deliver another year of strong growth.
The shares rose 33.5p to 315.5p.