Gear4music looking sound after a surge in profits

Online musical instruments retailer Gear4music today proved it has hit the right note with customers, reporting record annual sales and profits.

The company, which listed on AIM in 2015, smashed its own expectations as revenues surged 58% to £56.1 million in the year ended in February. Underlying operating profits almost tripled to £2.6 million.

Expansion overseas, including the addition of distribution hubs in Sweden and Germany, triggered a 124% rise in international sales, while revenue from own-brand goods rose 58%.

Chief executive Andrew Wass said new, specialist products, like carbon-fibre bows for violins and cellos, contributed to the performance, as did smaller than usual guitars, known as travel guitars, and digital pianos costing under £300.

Gear4music’s growth helped it mitigate the impact of the pound’s fall in value to “keep prices sensible for customers”, he added.

Shares in Gear4music, which did not propose a dividend, rose 28.4p, or almost 5%, to 626.4p.