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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