Gear4music (Holdings) PLC Trading Update (7841P)
05 September 2017 - 4:00PM
UK Regulatory
TIDMG4M
RNS Number : 7841P
Gear4music (Holdings) PLC
05 September 2017
5 September 2017
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
31 August 2017.
GBP'000 6 months to 6 months % change
31 August to 31 August
2017 2016
-------------- ------------ -------------- ---------
UK sales 17,900 13,784 +30%
-------------- ------------ -------------- ---------
European and
Rest of the
World sales 13,319 7,825 +70%
-------------- ------------ -------------- ---------
Total sales 31,219 21,609 +44%
-------------- ------------ -------------- ---------
Highlights
-- 44% increase in total revenue with continued strong growth in the UK and across Europe
-- Active customer numbers increased by 44% to 390,000
-- Strong start for new distribution centres in Sweden and Germany
Gear4music's Chief Executive Officer, Andrew Wass, said:
"We are very pleased with our trading performance over the last
six months, with 44% revenue growth being ahead of our expectation
for H1 as indicated at the start of the year, and 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.
A period of investment into our proposition and infrastructure
in H1 has increased our operational costs and restricted margins in
the short term. Encouragingly, revenue growth over the last six
weeks supports our expectation that, as previously stated, revenue
and profitability is likely to be more H2 weighted in FY18 than in
FY17.
We remain focused on delivering long-term sustainable growth
through investment in our people, products, websites and
operational capabilities, and raising GBP4.2m growth capital in May
2017 has enabled us to start accelerating investment in these key
areas. The Group continues to trade in line with our expectations
and is well prepared for a busy seasonal period."
The Group will report interim results for the six months ending
31 August 2017 on Tuesday 24 October 2017.
- Ends -
For further information, please contact
Gear4music +44 20 3128 8100
Andrew Wass, Chief Executive Officer
Chris Scott, Chief Financial Officer
Panmure Gordon +44 20 7886 2500
(Financial Adviser, Nominated Adviser and Broker)
Andrew Godber / Peter Steel - Investment Banking
Erik Anderson / Tom Salvesen - Corporate Broking
MHP Communications (Financial PR) +44 20 3128 8100
Andrew Leach
Simon Hockridge
Pete Lambie
About Gear4music.com
Operating from a Head Office in York, showrooms in York and
Sweden, and Distribution Centres in York, Sweden and Germany, the
Group sells own-brand musical instruments and music equipment
alongside premium third-party brands including Fender, Yamaha and
Gibson, 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 and fully responsive design websites covering 19
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 company news service from the London Stock Exchange
END
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