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Business & education services

Gear4Music reports first half sales jump as customer numbers surge

The online musical instrument seller said total sales for the period had risen 36% to £42.5mln compared to the same period last year, with customer numbers jumping 40%

Gear4Music Holdings PLC (LON:G4M) has reported a jump in sales of over 30% in the six months to August 31 as active customer numbers surged.

The online musical instrument seller said in a trading update that total sales for the period had risen 36% to £42.5mln compared to the same period last year, while its UK and rest of world (ROW) sales rose 34% to £24mln and 39% to £18.5mln respectively.

READ: Gear4Music confident of reaching expectations for financial year

The AIM-listed firm also said its active customer numbers had shot up 40% to 547,000, with chief executive Andrew Wass saying sales in the period had been ahead of expectations.

He added that despite a slower than anticipated build-up of inventory at its European distribution hubs, sales growth in the region was expected to accelerate in the second half with full-year underlying earnings (EBITDA) to be in line with expectations.

The company also saw opportunities to “rapidly increase” its market share as the industry shifted from traditional retail to e-commerce, Wass said, although he also highlighted that competitive pressures in the industry were impacting the group's gross margins in the short term.

The firm also announced a change to its accounting reference date to March 31 from February 28 to make the reporting cycle “more compatible” with its seasonal trading pattern.

Gear4Music will release its half-year results on October 16.

In early morning trading Friday, Gear4Music shares were down 1.4% at 608p.

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