Gear4music Holdings PLC's (LON:G4M) sales hit the right tone with strong growth in Europe lifting revenues by 44% in its latest half-year.
Shares were flat though as the musical instrument retailer again reminded that it had spent heavily achieving this growth and this had ‘increased costs and restricted short-term margins’.
UK sales rose by 30% to £17.9mln in the six months to August, but it was Europe that starred as revenues jumped by 70% to £13.3mln.
READ: Gear4Music unsettled by AGM comments
Andrew Wass, chief executive, said sales were ahead of expectations and the total of £31.2mln equates to two-year growth of 150%.
“Revenue growth in our core UK market continues to be strong, alongside very strong growth in our international markets, driven by our new distribution centres improving our customer proposition resulting in market share gains across Northern Europe.
He added that revenue growth in the second half so far has reinforced its view that revenue and profitability is likely to be more second half weighted this year.
“The group continues to trade in line with our expectations and is well prepared for a busy seasonal period."
Shares fell 2% to 795.2p.