UK-based online MI retailer Gear4music has announced its year-end trading update covering the 12 months to 28th February 2018.
The retailer reports a 43% increase in total revenue following continuing strong growth in the UK and Europe.
UK sales alone were up 27% from almost 34m to over 44m in the past 12 months, with sales from Europe and the rest of the world up 69% from 21m to nearly 36m.
The retailer also reported that conversion across all websites improved from 2.75% to 3.25%. As well as this, active customer numbers increased by 39% over the year to 474,600, and Gear4music saw its own-brand sales growth keeping pace with other-brand growth.
“We are very pleased to have grown our revenues from £56m last year to £80m this year, particularly given the heightened economic uncertainty that has impacted many retailers during the last 12 months,” said Gear4music’s Chief Executive Officer Andrew Wass.
“As previously communicated, in 2017 we focused on scaling-up our business to ensure we have the capacity for further growth, investing into our European distribution centres, our new Head Office in York, and expanding our platform development capability.
“EBITDA for the second half of FY18 will be ahead of the six-month period ended 28 February 2017, although as a result of the investments we have made during the year into our customer proposition, infrastructure, staff, systems and marketing, we expect EBITDA for the full financial year ended 28 February 2018 to be in line with our FY17 result.
Wass concluded: “We are confident that we are well placed to significantly grow both revenues and profitability during the next 12 months, as margins normalise, and the up-front investments we have made clearly demonstrate their ongoing value to the business.”