Gear4music (Holdings) PLC Trading Update (4632G)
02 March 2018 - 6:00PM
UK Regulatory
TIDMG4M
RNS Number : 4632G
Gear4music (Holdings) PLC
02 March 2018
2 March 2018
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 year-end trading update covering the
12 months to 28 February 2018.
GBP'000 12 months 12 months % change
to 28 February to 28
2018 February
2017
-------------- ---------------- ---------- ---------
UK sales 44,258 34,865 +27%
-------------- ---------------- ---------- ---------
European and
Rest of the
World sales 35,842 21,263 +69%
-------------- ---------------- ---------- ---------
Total sales 80,100 56,128 +43%
-------------- ---------------- ---------- ---------
Highlights
-- 43% increase in total revenue following continuing strong growth in the UK and Europe
-- Conversion across all websites improved from 2.75% to 3.25%
-- Active customer numbers increased by 39% over the year to 474,600
-- Own-brand sales growth kept pace with Other-brand growth
Gear4music's Chief Executive Officer, Andrew Wass, said:
"We are very pleased to have grown our revenues from GBP56m last
year to GBP80m this year, particularly given the heightened
economic uncertainty that has impacted many retailers during the
last 12 months.
As previously communicated, in 2017 we focused on scaling-up our
business to ensure we have the capacity for further growth,
investing into our European distribution centres, our new Head
Office in York, and expanding our platform development
capability.
EBITDA for the second half of FY18 will be ahead of the
six-month period ended 28 February 2017, although as a result of
the investments we have made during the year into our customer
proposition, infrastructure, staff, systems and marketing, we
expect EBITDA for the full financial year ended 28 February 2018 to
be in line with our FY17 result.
We are confident that we are well placed to significantly grow
both revenues and profitability during the next 12 months, as
margins normalise, and the up-front investments we have made
clearly demonstrate their ongoing value to the business."
The Group will report results for the financial year on 15 May
2018.
- Ends -
([1]) Active customers are customers of the Group who have
purchased item(s) at least once in the last year
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
Simon Hockridge
Pete Lambie
Background to Gear4music
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 delivering to
over 190 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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