Revenue at York’s Gear4music up 58% to £56m

Shares of York-based Gear4music, the online retailer of musical instruments and equipment, rose 4.55% after it said revenue jumped 58% to more than £56 million and underlying operating profit soared 192% to about £2.6 million in the year ended February 28, 2017.

Shares of Gear4music rose about 4.5% to 625p to give the firm a stock market value of roughly £126 million.

Gear4music enjoyed strong revenue growth across all of its businesses, with international markets up 124%.

The firm’s number of active customers grew 50% to 340,000 as it opened distribution centres in Sweden and Germany and acquired a software development team to accelerate its e-commerce platform development.

Since February 28, Gear4music has exchanged contracts to acquire a 50,000 sq. ft. freehold property at Holgate Park in York for £5.3 million which will become the group’s long-term head office, providing capacity for further expansion as required.

Gear4music CEO Andrew Wass said: “This has been a transformational year for the business, with further expansion of the Gear4music brand driving record sales and profits.

“In particular we have seen significant expansion in our international business where sales have been very strong.

“We have therefore accelerated investment in our European infrastructure to improve our customer proposition and reach, most notably through the opening of two new distribution hubs in Sweden and Germany.

 “Our growth has been underpinned by the quality of our bespoke e-commerce platform and we continue to drive innovation in this area to further improve our systems and websites, both in the UK and overseas.

“We begin our current financial year with good momentum and continued appetite from customers around the world for our market leading service and product offering.

“We are well positioned to deliver further growth and have plans in place to continue investing in our operational facilities and systems to support our growth plans.

“The next 12 months will be exciting as we move into our new head office in York, scale up our European operations, and enhance our worldwide proposition, and we remain confident in the long-term growth prospects for the group.”