Gear4music (Holdings) PLC Trading Update (4787T)
January 06 2017 - 1:00AM
UK Regulatory
TIDMG4M
RNS Number : 4787T
Gear4music (Holdings) PLC
06 January 2017
6 January 2017
Gear4music (Holdings) plc
Trading Update
Gear4music (Holdings) plc ("Gear4music" or "the Group"), the
largest UK based online retailer of musical instruments and music
equipment, today announces a trading update for the four months
from 1 September 2016 to 31 December 2016.
GBP'000 4 months to 4 months to % change
31 December 31 December
2016 2015
-------------- ------------- ------------- ---------
UK sales 15,019 11,608 +29%
-------------- ------------- ------------- ---------
Europe and
Rest of the
World sales 9,365 4,082 +129%
-------------- ------------- ------------- ---------
Total sales 24,384 15,690 +55%
-------------- ------------- ------------- ---------
Highlights
-- 55% increase in total like-for-like sales following continued
strong growth into the UK and Europe
-- 63% growth in sales of Own-brand products supported strong gross margins
-- Active Customer numbers up by 53% to 324,000 at 31 December
2016, compared with 31 December 2015
-- Swedish distribution centre now active. German distribution
centre on-track to be operational by the end of the financial
year
Gear4music's Chief Executive Officer, Andrew Wass, said:
"We continued to deliver a strong sales performance during the
last four months including the festive period, and with year to
date growth of 63%, the Group remains on-track to deliver annual
revenues in-line with the Board's expectations.
"We were particularly pleased with our Own-brand sales
performance during the period, which was driven by improving
conversion rates and investment in additional stock. As a result of
this and a controlled overhead cost base, the Board is now
confident that Gear4music is well placed to deliver profits for the
full year that will be ahead of the increased expectations
signalled at the half year stage.
"As the business continues its programme of investment into
distribution centres, websites, systems, products and people, we
remain confident of delivering on our growth strategy."
- Ends -
For further information, please contact
Gear4music +44 20 3128 8100
Andrew Wass, Chief Executive Officer
Chris Scott, Chief Financial Officer
Panmure Gordon +44 20 7886 2500
(Financial Adviser, Nominated Adviser and Broker)
Andrew Godber / Peter Steel - Investment Banking
Erik Anderson / Tom Salvesen - Corporate Broking
MHP Communications (Financial PR) +44 20 3128 8100
Andrew Leach
Simon Hockridge
Pete Lambie
Background to Gear4music
Operating from an office, showroom and distribution centre in
York, and distribution centres in Sweden and Germany, the Group
sells Own-brand musical instruments and music equipment alongside
premium third party brands including Fender, Yamaha and Gibson, to
customers ranging from beginners to musical enthusiasts and
professionals, in the UK, Europe and, more recently, into the Rest
of the World.
Having developed its own ecommerce platform, with multilingual,
multicurrency and fully responsive design websites covering 19
countries, the Group has rapidly expanded its database and
continues to build its overseas presence.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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