Gear4music [IRDX RGRM] has unveiled a 46% rise in sales in its first set of results to be reported on the London stockmarket.
The online retailer of musical instruments and music equipment, which went public in June 2015 and is a Top150 retailer in IRUK Top500 research, today reported sales of £35.5m in the year to February 29. That’s 46% up on the same time last year. In the UK alone, revenue of £26m was 39% up on last time, while European revenue of £9.5m was 73% up. Pre-tax profits came in at £6,000, after £606,000 in costs related to its IPO, which raised £10.3m, and the £283,000 financial expenses related to repaying private equity shareholders. Profits were up from a loss of £797,000 at the same time last year.
The company said fast growth in sales, traffic – 24% up at more than 10m unique visitors – and conversion rates had come after it invested in developing its platform, offering new services including weekend delivery and online consumer finance, and introducing products such as own-brand pianos, studio microphones and stage lighting.
Chief executive Andrew Wass said: “With over 10m visitors to our websites during the year, improved conversion and an increasing number of active customers, our investment strategies are delivering the growth we anticipated, and following strong sales momentum in both the uK and internationally during the first two months of the new financial year, we remain optimistic for the year ahead.”
Gear4music sells own-brand and third-party brand musical instruments and equipment from an office showroom and distribution centre in York to customers that range from beginners to professionals both in the UK and, more recently, in Europe. Its ecommerce platform was developed in-house and underpins responsive local language, local currency websites selling in 19 countries. It aims, says Wass, to become the best retailer of its kind in Europe, and will now “accelerate the development of our systems, websites, logistics, people and product ranges to ensure a continually improving customer experience, as part of our mission to be the best.”
Welcoming new shareholders to the company chairman Ken Ford said: “Like myself, you will have recognised Gear4music’s potential to become a leading online retailer in a large but fragmented market.”
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