International sales drive profits growth at Gear4Music

Gear4Music post revenue rise
Andrew Wass (left), founder and Chief Executive of Gear4Music

Gear4Music, the Leeds-based online seller of musical instruments and equipment, has seen an uptick in total sales and profits driven by international trade.

Total sales growth for the six months to 30 September 2019 was up 16% to £49.4 million compaored with the £42.5 million reported for H1 2019.

Although there was a 3% rise in domestic sales, the company recorded a 33% rise in sales to Europe and the rest of the world, reaching £24.6 million.

This helped to boost gross profit by 29% from £9.6 million to £12.4 million.

“I am very pleased to report that we have achieved our primary objective for the period of materially improving our gross margins,” said CEO Andrew Wass.

“By cutting out less profitable sales and focusing on higher margin products, we have delivered an FY20 H1 gross margin of 25.2% and a 29% increase in gross profit.

“We have restored our gross margins to FY18 levels whilst at the same time continuing to grow our revenues and taking market share.

“International sales growth continues to be strong, and whilst the UK market remains highly competitive, we have returned to a more profitable margin structure and believe that this is the right strategy from which to grow our revenues going forward.”

He added: “Our re-focused growth strategy is now in place and we are confident that the business is effectively configured to achieve a sustainable level of profitable growth.

“As such, we continue to trade in line with our full year EBITDA expectations as we head towards our seasonal peak.”