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AIM-listed Gear4Music (LON:G4M) booked a 36% increase in revenues for the six months ended 31st August with strong growth in the UK and international markets. However, gross margins dropped by 230 basis points as the company attempted to grow its market share.
Chief executive Andrew Wass said: “As the market for musical instruments and music equipment continues to transform and consolidate, we have strengthened our position as the UK’s leading retailer within the market, having invested into our customer proposition, market leading e-commerce platform, and scalable infrastructure.
As we continue to invest and focus on gaining market share, I am pleased to report that we have seen particularly strong revenue growth since 1 September 2018 alongside notable gross margin improvements on the H1 period. As such, we remain confident of delivering another year of strong revenue growth and EBITDA in line with our full year expectations.”
Shares in Gear4Music grew by 4.62% to 504.80p (as of 12:15 BST).