York musical retailer fine-tunes sales with 30 per cent increase

A musical instrument retailer has announced that its sales have increased by more than 30 per cent in the past year.

Gear4music, based in York, reported today that its sales for the year to the end of March grew by 31 per cent.

On the back of these figures, the company has said that it now expects its EBITDA to reach at least £19m, compared to £7.8m in 2020.

However, it added that it is remaining “mindful” of the impact of Brexit on its trading going forward.

Andrew Wass, Gear4music’s CEO, commented: “I am very pleased to be reporting results that are ahead of our previous expectations, representing a transformational FY21 trading performance for the group, and building on the significant progress we made in FY20.

“Further improvements in gross margins have driven our profits to record levels, amplified by the previously reported exceptional sales growth and marketing efficiencies which were driven by Covid-19 lockdowns, particularly evident during Q1 FY21.

“As part of the group’s ongoing strategy, the new enlarged banking facility will help us to accelerate our longer-term ambitions.

“As we lay the foundations in FY22 for the next stage of our growth journey, in addition to establishing new sales verticals, we will further strengthen our European distribution network, accelerate investment into our e-commerce platform, and consider acquisition opportunities as they arise.

“Whilst it is still very early in the new financial year, we are pleased with FY22 trading to date, relative to the exceptional period of trading during April FY21.

“We also remain mindful of the ongoing global pandemic and operational challenges posed by Brexit, but are confident that we have appropriate plans in place to mitigate their effects.

“Underpinned by our strong financial position, the board is confident that our online business model and specialist market knowledge, supported by our Europe-wide operational platform, will continue to deliver long-term sustainable and profitable growth.”

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