Gear4Music is sounding good

Andrew Wass, CEO of Gear4Music, plays piano accompanied by colleagues
Andrew Wass, CEO of Gear4Music, plays piano accompanied by colleagues
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​M​usical instruments retailer Gear4Music​ reported an impressive 55 per cent increase in like-for-like sales in the run up to Christmas following strong growth in the UK and Europe.

The ​York-based firm, which reported a 129 per cent increase in overseas sales, said full year profits will be ahead of expectations. ​The firm, which is the largest UK online retailer of music​al​ instruments and music equipment, ​said one of its best sellers over Christmas was the Modal CRAFTsynth Monophonic Synthesizer Kit​. The group said the synthesizer costs £79.99 and can be assembled in less than 10 minutes.​

In the four months to December 31, Gear4Music reported a 63 per cent increase in own-brand sales.

Active ​c​ustomer numbers ​rose 53​ per cent​ to 324,000 ​by the end of 2016, compared with the end of 2015.

Analyst ​George Mensah​ at Shore Capital said: "​In our view, Gear4music is a profitable growth business benefiting not only from a channel shift in its respective market but also the ongoing investment to support a diversified growth strategy.

​"​We believe the market is likely respond favourably to today’s trading statement and expect the share price to trend upwards.​"​

​The group's total sales rose 55 per cent to £24m in the four months to December 31.​

Gear4music’s C​EO Andrew Wass said:​ ​“We continued to deliver a strong sales performance during the last four months including the festive period, and with year to date growth of 63​ per cent​, the ​g​roup remains on​ ​track to deliver annual revenues in​ ​line with the ​b​oard’s expectations.

“We were particularly pleased with our ​o​wn-brand sales performance during the period, which was driven by improving conversion rates and investment in additional stock.

​"​As a result of this and a controlled overhead cost base, the ​b​oard is now confident that Gear4music is well placed to deliver profits for the full year that will be ahead of the increased expectations signalled at the half year stage.​"

He said that as the business continues to invest in distribution centres, websites, systems, products and people, ​the group is​ confident of delivering on ​its​ growth strategy.

T​he firm's ​Swedish distribution centre ​is​now active​ and the​ German distribution centre ​is ​on​ ​track to be operational by the end of the financial year​.​