Gear4music revenues up 73%

Musical instruments and music equipment retailer Gear4music's revenues rose by 73% to £21.6m in the six months to the end of August.

Accelerated revenue growth was driven by rising website traffic and improved conversion rates.

UK revenue totalled £13.8m (+44%) while European revenue of £7.8m was up by 169%.

Active customers increased by 45% with an email subscriber database of over 600,000.

Adjusted EBITDA of £1.3m was £1.3m 6.2% of revenue (H1 2015-16: £216,000 - 1.7% of revenue). The group posts an adjusted pre-tax profit of £966,000 against a loss of £217,000 a year ago.

Chief executive Andrew Wass said: "I am extremely pleased that during the last six months we have combined strong trading with significant strategic progress, as we continue on our journey to be one of Europe's leading online retailers of musical instruments and equipment.

"Accelerating sales growth into Europe, which represented 40% of our total sales during the last two months of the period, has reinforced our decision to expand our distribution capacity in Europe and further enhance our customer proposition.

"To underpin our strong growth and physical geographic expansion, we are pleased to announce that our software development team will be brought in-house and, with further recruitment planned, expanded even faster to ensure we continue to build a market leading e-commerce platform.

"Whilst we continue to invest to grow the business it is pleasing to have generated significant profits during the last six months, when historically we've produced the majority of our profits during the second half of the year.

"Trading remains strong heading into our important Christmas period and the Board considers the Group well placed to deliver results for the full year that will be ahead of its previous expectations."

At 9:31am: (LON:G4M) Gear4music Holdings Plc share price was -7.5p at 308.5p