Gear4music (Holdings) PLC Trading Update (6253L)
14 Gennaio 2021 - 8:00AM
UK Regulatory
TIDMG4M
RNS Number : 6253L
Gear4music (Holdings) PLC
14 January 2021
14 January 2021
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 three months to
31 December 2020.
GBPm 3 months to 31 3 months to % change
December 2020 31 December
2019
UK sales 23.0 20.9 +10%
--------------- ------------- ---------
Europe and Rest of
the World sales 29.2 19.4 +51%
--------------- ------------- ---------
Total sales 52.2 40.3 +30%
--------------- ------------- ---------
Highlights
-- Gross margin improved by 370bps to 29.9% (FY20: 26.2%)
-- Gross profit increased by GBP5.0m (47%) from GBP10.6m to GBP15.6m
-- Logistics and IT infrastructure performed well during peak trading
-- FY21 EBITDA to be ahead of expectations, and not less than GBP16.5m (FY20: GBP7.8m)
Gear4music's Chief Executive Officer, Andrew Wass, said:
"I am pleased to report a very successful FY21 peak trading
period, that continues to reflect the significant commercial and
operational progress that we have made during the last two years,
alongside the continuing hard work and commitment of our staff.
Strong growth during the period has been driven by products that
can be used and played at home, including Guitars, Keyboards and
Home Recording equipment. We know many of our customers are looking
forward to rehearsing and performing together again, and as social
distancing restrictions are eased, we expect our Live Sound, Drums
and Orchestral categories to return to stronger growth.
As expected, the end of the Brexit transition period and the
UK's departure from the EU customs union was not without its
challenges, which we had extensively planned for and have carefully
managed. New cross border processing costs have been introduced,
alongside the added complexity and cost of additional rules of
origin duties contained within the Brexit trade deal.
The planned scale-up of our European hub infrastructure has
provided a solid operational platform to help overcome these
challenges, and also helped to mitigate the impact of port closures
in December 2020 as a result of COVID. Whilst there are further
refinements for us to make, I am pleased that the planned
reconfiguration of our delivery systems and transport network has
performed well, and has supported stronger trading since 1 January
2021 than the Board had initially expected.
As a result of the very successful Christmas trading period, and
early indications of positive trading post-Brexit, we expect to
report results for the full financial year ahead of recently
upgraded consensus market expectations. Notwithstanding what has
been an exceptional period of trading since lockdowns began in
March 2020, the Board remains confident that the Group is well
resourced and positioned to deliver further 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 Broker
Peter Steel/Amanda Gray, Corporate Finance
Tom Salvesen, Corporate Broking +44 (0)20 7496 3000
Alma - Financial PR +44 (0)20 3405 0205
Rebecca Sanders-Hewett gear4music@almapr.co.uk
Helena Bogle
Harriet Jackson
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.
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END
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