In the four months to December 31, UK sales jumped 25% while Europe and Rest of the World sales grew 69%.

Companies: Gear4music (Holdings) PLC


Gear4music (LON: G4M) has issued a trading update today for the 4 months to December 31, outlining the Group's trading performance in the run-up to the busy Christmas period.

 

The online music retailer with more than 1.3 million registered customers saw Group sales jump 42% when compared to the same 4-month period in 2016, boosted by a 69% spike in European and Rest of World sales. 

 

At home, UK sales climbed by 25% compared to the same period in 2016, while active customer numbers grew by 38% to 450,000 when compared to September-December 2016.


Interestingly enough, shares in G4M fell slightly after the announcement on Friday morning - down 3.5% to 745p.


Gear4music's Chief Executive Officer Andrew Wass said:


"We are very pleased with our trading performance over the last four months, with sales growth of 42% building on the 44% achieved in the first half, and trading for the year to date is in line with the board's expectations.


Growth in our more established UK market has remained strong alongside very strong growth in our international markets which are being further driven by an improved delivery proposition as we continue to scale up our European hubs."

Gear4music began in 2003 and listed on London's junior AIM market in 2015, where share prices plateaued for 12 months at c. 140p before they began to rally sharply, reaching an all-time high of 862p in October last year.


IN FY17 G4M reported a Net Profit of £2.3m from Revenues of £56m. Revenues are forecast to double to c. £102m in FY19 as the Group trades on a forecast price-earnings ratio of 60x. Currently, the Group has a Cash Balance of c. £4m and an operating margin of c. 3%.



The information contained within this post is based on personal experience and opinion and should not be considered as a recommendation to trade nor financial advice.