Gear4Music hitting in the right notes ahead of AGM

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Gear4Music

Gear4music has reported that trading was currently in line with expectations in a statement released ahead of its annual general meeting today.

The online musical instruments retailer is expected to inform shareholders that its UK and international revenue growth continued to be “strong” and that its European distribution centres were improving its customer proposition.

The company also anticipates its current fiscal year will follow a more typical trading pattern, with more sales and profits generated during the second half of the year compared to last year’s pattern.

The news comes a week after it was revealed that Gear4Music raised £4.2 million with a placing on the stock market with plans to push international expansion.

READ MORE: £4.2 million raised by Gear4Music amid ambitious expansion plans

The retailer had issued 610,000 new shares at 690p per share, with a further 839,000 existing shares sold by directors at a 1.9 per cent discount.

The money raised is expected to fund the Yorkshire-based retailer’s multilingual resources and offerings in Germany and Scandinavia.

It will also fund the development of its bespoke IT platform and its new UK head office.

In its full-year report covering the 12 months to February 28, Gear4Music raked in £56.12 million in revenue, a 58 per cent spike compared to the previous year’s £35.48 million.

Meanwhile, gross profit grew 65 per cent year-on-year from £9.18 million to £15.14 million, and underlying EBITDA more than doubled with a 115 per cent jump from £1.68 million to £3.61 million.

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