Gear4music, the York-based online retailer of musical instruments and music equipment, has posted a rise in sales as it secures a £35 million facility.
For the year ending 31 March 2021, the listed company reported total sales of £157.5 million, up from £120.3 million in 2019/20.
UK sales specifically rose 27% to £78.7 million while sales in Europe and the Rest of the World were up 35% to £78.8 million.
The company said that EBITDA is now expected to be not less than £19 million – up from £7.8 million the previous year and ahead of current market expectations.
Moreover, it has signed a new £35 million three-year revolving credit facility with HSBC.
“I am very pleased to be reporting results that are ahead of our previous expectations, representing a transformational FY21 trading performance for the Group, and building on the significant progress we made in FY20,” said Andrew Wass, CEO of Gear4music.
“Further improvements in gross margins have driven our profits to record levels, amplified by the previously reported exceptional sales growth and marketing efficiencies which were driven by COVID-19 lockdowns, particularly evident during Q1 FY21.
“As part of the Group’s ongoing strategy, the new enlarged banking facility will help us to accelerate our longer-term ambitions.
“As we lay the foundations in FY22 for the next stage of our growth journey, in addition to establishing new sales verticals, we will further strengthen our European distribution network, accelerate investment into our e-commerce platform, and consider acquisition opportunities as they arise.
“Whilst it is still very early in the new financial year, we are pleased with FY22 trading to date, relative to the exceptional period of trading during April FY21.
“We also remain mindful of the ongoing global pandemic and operational challenges posed by Brexit, but are confident that we have appropriate plans in place to mitigate their effects.
“Underpinned by our strong financial position, the Board is confident that our online business model and specialist market knowledge, supported by our Europe-wide operational platform, will continue to deliver long-term sustainable and profitable growth.”