York-based Gear4music (AIM:G4M) has seen “record profits” after total sales increased by 9% for the 12 months to 31 March 2020.
The online retailer for musical instruments said sales were up 9% to £120.3m from £109.9m in 2019 whilst it recorded on-hand cash of not less than £7m from £5.3m in 2019.
UK sales increased 5% from £58.9m to £61.8m for the same period whilst sales in Europe and the rest of the world jumped 15% from £51m previously to £58.5m.
Over the 13 months ended 31 March 2020, gross margins improved by 310bps to 25.9% from 22.8% whilst the group recorded EBITDA of not less than £7m compared to £2.3m in 2019.
Shares in Gear4music were trading 11.00% higher at 277.5p during Thursday morning.
"We have achieved our primary FY20 objectives of improving our operational strength and driving efficiencies in order to restore gross margins, resulting in record profits for the group,” said Andrew Wass, Chief Executive of Gear4music.
The group said it had satisfied high demand since late March “as an increasing number of people recognise the benefits that playing musical instruments can bring during these difficult times.”
Wass added that he remains “confident” that G4M is able to achieve long-term profitable growth having positioned itself strongly to build upon the “excellent progress” made during FY2020.
The company’s final results are to be announced on 23 June 2020.
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