Gear4Music sees 'record' FY profits

Music equipment retailer Gear4music reported "record profits" for the 12 months ended 31 March on Thursday, driven by an increase in sales during the period.

Gear4music said total revenues were up 9% year-on-year at £120.3m as UK sales increased 5% to £61.8m and sales in Europe and the rest of the world jumped 15% to £58.5m.

Gross margins improved to 25.9% from 22.8%, while underlying earnings were slated to come in at no less than £7m - a marked improvement on the £2.3m recorded in 2019.

Chief executive Andrew Wass said: "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."

While Wass acknowledged that there had been "operational challenges" related to the Covid-19 pandemic, the group's CEO said he remained "confident" that G4M was "appropriately configured" to achieve long-term profitable growth.

As of 1300 BST, Gear4music shares had shot up 11% to 277.50p.