23rd Jan 2020 10:55
(Alliance News) - Gear4music Holdings PLC said Thursday it expects annual profit to be in line with expectations, after it recorded an increase in sales in November and December.
Shares in the online musical equipment retailer were up 12% at 272.50 pence each in London.
For the two months to December 31, Gear4music recorded an increase in sales globally, largely due to the Black Friday to Cyber Monday weekend, when it dispatched over 26,000 orders, up 34% from 2018's Black Friday weekend.
York-based Gear4music said total sales across the UK, Europe and the rest of the world were up 7% at GBP30.4 million compared to GBP28.5 million recorded in the same period in 2018. UK sales increased 6% to GBP15.9 million from GBP15.0 million posted the year prior, with Europe and the rest of the world reporting a 7% increase to GBP14.5 million from GBP13.5 million.
Gross profit increased 18% to GBP8.0 million from GBP6.8 million recorded in the comparative period the year prior.
The company also said gross margin improved by 260 basis points to 26.5% from 23.9% a year before.
Looking ahead, Chief Executive Andrew Wass said: "We will return to focusing on and delivering new growth-orientated projects. We remain confident in the medium to long-term growth opportunity, whilst continuing our focus on improving gross margins and sustainable profitability."
Gear4music's financial year ends on March 31. In the 13 months to March 31, 2019 the company recorded a loss of GBP163,000, swung from a GBP1.4 million profit the year before.
At the half-year stage, to September 2019, Gear4music recorded a pretax loss of GBP279,000.
By Ife Taiwo; [email protected]
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