Gear4music posts 43% increase in sales for year to end February 2018

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Gear4music, the largest UK based online retailer of musical instruments and music equipment, today announces a year-end trading update covering the 12 months to 28 February 2018.

£’000 12 months to 28 February 2018 12 months to 28

February 2017

% change
UK sales 44,258 34,865 +27%
European and Rest of the World sales 35,842 21,263 +69%
Total sales 80,100 56,128 +43%

Highlights

  • 43% increase in total revenue following continuing strong growth in the UK and Europe
  • Conversion across all websites improved from 2.75% to 3.25%
  • Active customer numbers increased by 39% over the year to 474,600
  • Own-brand sales growth kept pace with Other-brand growth

Gear4music’s chief executive officer, Andrew Wass, said: “We are very pleased to have grown our revenues from £56m last year to £80m this year, particularly given the heightened economic uncertainty that has impacted many retailers during the last 12 months.

As previously communicated, in 2017 we focused on scaling-up our business to ensure we have the capacity for further growth, investing into our European distribution centres, our new Head Office in York, and expanding our platform development capability.

EBITDA for the second half of FY18 will be ahead of the six-month period ended 28 February 2017, although as a result of the investments we have made during the year into our customer proposition, infrastructure, staff, systems and marketing, we expect EBITDA for the full financial year ended 28 February 2018 to be in line with our FY17 result.

We are confident that we are well placed to significantly grow both revenues and profitability during the next 12 months, as margins normalise, and the up-front investments we have made clearly demonstrate their ongoing value to the business.”

The Group will report results for the financial year on 15 May 2018.