Gear4Music posts jump in interim sales

Musical instruments and equipment retailer Gear4Music reported a jump in interim sales as it said the business was well placed to cope with the impact of the UK’s decision to leave the European Union.

In a trading update for the six months to the end of August, the company said UK sales rose 44% to £13.78m while European sales surged 169% to £7.83m.

Meanwhile, active customer numbers increased to 271,000 from 187,000.

Chief executive officer Andrew Wass said: "We are very pleased to have sustained the strong sales momentum announced on 29 July and achieved 73% like-for-like revenue growth during the half year, and overall profitability in the period will be ahead of management expectations as we head into the key second half trading period.

“This impressive growth reflects our focus on continual investment in and improvement of our product range, websites, systems and overall customer proposition, and the commitment of our hard working team.”

The company said the first two distribution hubs will increase overall capacity of the business to deliver over £100m of revenue. “This additional distribution capability will also be augmented with localisation of some purchasing and merchandising functions, ensuring the business is well placed for any Brexit eventuality,” Wass said.

Gear4Music is due to release its interim results for the six months to the end of August on 18 October.

At 0917 BST, shares were up 11% to 184.50p.