Gear4music (Holdings) PLC Year-End Trading Update (2253W)
April 22 2021 - 1:00AM
UK Regulatory
TIDMG4M
RNS Number : 2253W
Gear4music (Holdings) PLC
22 April 2021
22 April 2021
Gear4music (Holdings) plc
Year-End Trading Update
Gear4music (Holdings) plc ("Gear4music" or "the Group"), the
largest UK based online retailer of musical instruments and music
equipment, today announces a year-end trading update covering the
12 months to 31 March 2021.
GBPm 12 months to 12 months to % change
31 March 2021 31 March 2020
UK sales 78.7 61.8 27%
--------------- --------------- ---------
Europe and Rest
of the World sales 78.8 58.5 35%
--------------- --------------- ---------
Total sales 157.5 120.3 31%
--------------- --------------- ---------
FY21 Highlights *
-- Gross margin improved by 360bps to 29.5% (FY20: 25.9%; FY19: 22.8%)
-- EBITDA now expected to be not less than GBP19.0m (FY20:
GBP7.8m; FY19: GBP2.3m), ahead of current market expectations
-- Net cash of GBP2.4m at 31 March 2021 (net debt at 31 March
2020 and 31 March 2019: GBP5.5m and GBP7.5m respectively)
-- Signed a new GBP35m three-year Revolving Credit Facility with HSBC
*Subject to audit. Final results to be announced 22 June
2021.
Gear4music's Chief Executive Officer, Andrew Wass, said:
"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.
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."
- Ends -
Enquiries:
Gear4music
Andrew Wass, Chief Executive Officer
Chris Scott, Chief Financial Officer +44 (0)20 3405 0205
N+1 Singer - Nominated Adviser and Joint
Broker
Peter Steel/Amanda Gray, Corporate Finance
Tom Salvesen, Corporate Broking +44 (0)20 7496 3000
Investec Bank plc - Joint Broker
David Flin
Alex Wright
Harry Hargreaves +44 (0)20 7597 5970
Alma - Financial PR +44 (0)20 3405 0205
Helena Bogle gear4music@almapr.co.uk
Harriet Jackson
Josh Royston
Faye Calow
About Gear4music .com
Operating from a Head Office in York, and Distribution Centres
and showrooms in York, Sweden and Germany, the Group sells
own-brand musical instruments and music equipment alongside premium
third-party brands including Fender, Yamaha and Roland, 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 e-commerce platform, with multilingual,
multicurrency websites delivering to over 190 countries, the Group
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFIDSIILFIL
(END) Dow Jones Newswires
April 22, 2021 02:00 ET (06:00 GMT)
Gear4music (holdings) (LSE:G4M)
Historical Stock Chart
From Apr 2024 to May 2024
Gear4music (holdings) (LSE:G4M)
Historical Stock Chart
From May 2023 to May 2024