Shares of York-based online music equipment retailer Gear4music rose 21% on Tuesday after it published results for the year ended March 31, 2020, and reported “exceptionally strong trading in April and May 2020” during the coronavirus lockdown.
Gear4music’s CEO Andrew Wass said an increasing number of people throughout the COVID-19 lockdown recognised “the benefits that playing, creating and recording music can bring.”
The company said its positive sales trend “with improved margins” has continued into June.
Revenue for the year rose 2% to £120.3 million.
CEO Wass said: “We set out at the start of FY20 seeking to execute our renewed strategy and return the group to a more profitable growth trajectory.
“As a result of the efforts across our team and the excellent commercial and operational progress we have made over the past 12 months I am pleased to report that profits for the year are ahead of the board’s expectations.
“As previously announced, the commitment and hard work of our employees has enabled us to continue operating safely, whilst successfully serving our customers throughout the COVID-19 crisis.
“With an increasing number of people throughout the COVID-19 lockdown recognising the benefits that playing, creating and recording music can bring, we have seen a significant increase in demand during this exceptional period.
“Positive sales trends with improved margins have continued into June, and we have also incurred lower marketing costs than we would typically expect.
“The improvements we have made during FY20, and the exceptionally strong trading we have experienced during the lockdown period, mean we are financially stronger and better placed than ever to make the most of future growth opportunities within our market.
“Therefore, whilst still early in the current financial year, the board is confident of continued financial improvements during FY21 and look forward to the year ahead with optimism.”