Gear4music has warned on profits for the second time this year despite an increase in sales.

The online specialist music retailer said total revenues rose 36% to £118.3m in the 13 months to March 31, but lowered its EBITDA expectations from £3.3m to “not less than £2m”.

A combination of courier cost inflation and capacity problems at its York distribution centre were to blame for the profit hit.

Gear4music remained confident that the “growth-related factors” will not continue into the new financial year and that its “long-term strategy remains firmly on track”.

It was the second time this year the specialist retailer issued a profit warning after it struggled with warehouse logistics over the Christmas quarter.

Gear4music said: “The group has sustained very strong revenue growth over a number of years and further enhancing our systems and processes to support our future growth will be a key focus of FY20.

“After careful consideration, in the short term we are now planning to alleviate peak trading capacity constraints by improving efficiency of our distribution and logistics management systems.”