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Gear4music revenues surge in 'transformational year'
22nd Jun 2021 08:27
(Sharecast News) - Musical instruments and equipment retailer Gear4music said on Tuesday that the 2021 trading year had been "a transformational year for the group", with the firm delivering "an exceptional financial performance" despite "unprecedented operational challenges" presented by the Covid-19 pandemic and Brexit.
Gear4music said full-year revenues had surged 31% to £157.5m, while gross profits shot up 48% to £46.4m and gross margins expanded 350 basis points to 29.4%.
Underlying earnings steamed ahead 154% to £19.8m and net profits skyrocketed 488% to £12.6m.
The AIM-listed group noted that given its "exceptional" financial performance in 2021 was driven by Covid-19 lockdowns during the first half, it does not expect to witness the same level of trading in the current trading year or achieve the same level of full-year profitability during 2022.
However, G4M said first-quarter trading was stronger than previously expected and, having retained a good proportion of the gross margin gain achieved during 2021, the group's financial results for its current trading year were now seen as likely being ahead of previous expectations.
Chief executive Andrew Wass said: "The group is in a strong position to build upon the significant success of FY21, as we accelerate the development of our bespoke e-commerce platform and strengthen our European distribution network by launching new operational hubs in Ireland and Spain.
"The outlook and general demand for musical instruments and equipment remains positive, and with the strategies and actions we are taking, we remain confident of delivering sustainable and profitable growth in the long-term."
As of 1115 BST, Gear4music shares were up 4.42% at 969.0p.
Gear4music said full-year revenues had surged 31% to £157.5m, while gross profits shot up 48% to £46.4m and gross margins expanded 350 basis points to 29.4%.
Underlying earnings steamed ahead 154% to £19.8m and net profits skyrocketed 488% to £12.6m.
The AIM-listed group noted that given its "exceptional" financial performance in 2021 was driven by Covid-19 lockdowns during the first half, it does not expect to witness the same level of trading in the current trading year or achieve the same level of full-year profitability during 2022.
However, G4M said first-quarter trading was stronger than previously expected and, having retained a good proportion of the gross margin gain achieved during 2021, the group's financial results for its current trading year were now seen as likely being ahead of previous expectations.
Chief executive Andrew Wass said: "The group is in a strong position to build upon the significant success of FY21, as we accelerate the development of our bespoke e-commerce platform and strengthen our European distribution network by launching new operational hubs in Ireland and Spain.
"The outlook and general demand for musical instruments and equipment remains positive, and with the strategies and actions we are taking, we remain confident of delivering sustainable and profitable growth in the long-term."
As of 1115 BST, Gear4music shares were up 4.42% at 969.0p.