10th May 2016 07:51
LONDON (Alliance News) - Gear4music (Holdings) PLC on Tuesday said it swung to a profit in its first financial year since listing on AIM, boosted by growth in revenue and lower finance costs.
The online musical instruments retailer said it made a pretax profit of GBP6,000 in the year ended February 29, having suffered a pretax loss of GBP797,000 the prior year, as revenue grew to GBP35.5 million from GBP24.2 million.
Geographically, sales in the UK grew by 39% to GBP26.0 million and sales in Europe rose by almost three quarters to GBP9.5 million. Visitor traffic grew by nearly a quarter in the year to more than 10 million, while active customers purchasing products increased by 34% to 226,000.
Gear4music said growth was achieved thanks to investments it made into its website platform, infrastructure and product ranges.
Gear4music listed on AIM last June. During the year, costs related to its initial public offering increased to GBP606,000 from GBP165,000 the year before, but this was offset by a drop in finance expenses to GBP233,000 from GBP804,000.
Gear4music said it will review its dividend policy in the current financial year. It doesn't currently pay a dividend.
"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," Chief Executive Andrew Wass said in a statement.
Shares in Gear4music were trading up 1.2% at 132.55 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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