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Business & education services

Gear4music reveals jump in first half revenue

"Trading remains strong heading into our important Christmas period," said chief executive Andrew Wass.

Gear4music Holdings Plc (LON:G4M) reported a 73% jump in revenue in the six months to August 31 thanks to rising website traffic and improved conversions into sales.

Revenue totalled £21.6mln, compared to £12.49mln. Gross profit rose in-step, up 74% to £5.75mln from £3.3mln. UK revenue increased by 44% to £13.8mln, while at £7.8mln the group’s European revenue was up 169%.

Net profit was reported as £750,000, compared to a £1.1mln loss in the same period of 2015.

The company described its balance sheet - which included £900,000 of cash and £9.3mln of inventory - as ‘strong’ ahead of the peak Christmas trading period.

“Whilst we continue to invest to grow the business it is pleasing to have generated significant profits during the last six months, when historically we've produced the majority of our profits during the second half of the year,” said Andrew Wass, Gear4Music chief executive.

"Trading remains strong heading into our important Christmas period and the board considers the group well placed to deliver results for the full year that will be ahead of its previous expectations."

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