- Gear4music’s sales rise 46%
- The etailer’s gross profit increased 36%
- Adjusted EBITDA doubled to £1.6m
Gear4music has reported a healthy increase in sales and profits in its first set of full-year results following its flotation last June.
The musical equipment etailer reported a 46% increase in sales to £35.4m in the year ended February 29 and pre-tax profit of £6,000, up from a loss of £797,000 the previous year.
The retailer attributed its modest pre-tax profit to one-off IPO costs amounting to £606,000.
Adjusted EBITDA, which stripped out the cost of the etailer’s flotation, doubled to £1.6m, while its gross profit advanced 36% to £9.1m.
The etailer also reported a 24% uplift in website traffic with more than 10 million unique visitors.
Gear4music sells own-brand and third-party musical equipment online in 19 countries.
The bulk of the etailer’s sales come from the UK, which reported a 39% increase to £26m, while the European market comprised £9.5m, up 73% year on year.
Chief executive Andrew Wass said: “In our first set of annual results as a listed company, it’s very pleasing to be reporting a record year with strong growth across our core UK business and excellent progress into European markets, which has led to increased revenues and profits.
“We have achieved this growth by investing in our website platform, infrastructure and product ranges, strengthening our customer offer, and establishing ourselves as the go-to online destination for musical instruments and equipment.
“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.”