Gear4music records 9% sales growth for FY20

Gear4music has increased revenue by 9% to £120.3 million in the financial year ended 31 March 2020. The online musical instruments and music equipment retailer also said it has on-hand cash of not less than £7.0 million as of 31 March, which will help it navigate the Covid-19 pandemic.

There was a particularly significant increase in sales in Europe and the rest of the world, at 15% to £58.5 million. UK sales grew by a more modest 5% to £61.8 million. In addition, gross margin improved by 25.9% to 310bps, and the retailer stated that EBITA would be not less than £7.0 million.

Earlier this month, Gear4music said it expected profits to be higher than originally forecast for FY20 due to its commercial and operational changes in the past year.

Andrew Wass, CEO of Gear4music, said: "I am very pleased to report that we have achieved our primary FY20 objectives of improving our operational strength and driving efficiencies in order to restore gross margins, resulting in record profits for the group.”

As with all non-essential retailers, Gear4music has had difficulties maintaining the same level of sales since Covid-19 crisis developed from mid-March. However, its eCommerce model has allowed it to continue supplying customers during lockdown.

“FY21 has begun with operational challenges relating to Covid-19, and our focus has been on protecting the health and safety of our employees, whilst ensuring service levels are maintained for our customers. I am extremely grateful for the extraordinary hard work and commitment our teams have demonstrated, which has allowed us to successfully satisfy the high demand we have encountered since late March, as an increasing number of people recognise the benefits that playing musical instruments can bring during these difficult times,” added Wass.

“We remain confident that our business is appropriately configured to achieve long-term profitable growth, and that we are in a strong position to build upon the excellent progress we have made during FY20."