Gear4music has reported that, for the six months ended 31 August 2017, gross profit was up £2.1m, or 36%, at £7.8m.
The gross margin was 25.0%, which it said reflected investment in customer proposition during a period of product cost price inflation.
Trading is said to be in line to meet full year expectations.
- Strong revenue growth driven by International sales growth, rising website traffic and improving conversion rates
- UK revenue of £17.9m (+30%) and International revenue of £13.3m (+70%)
- Active customers increased by 44% with an email subscriber database of over 725,000
Commenting on the results, Andrew Wass, Chief Executive Officer said:
"I am very pleased with these results which combine tangible strategic and commercial progress with 44% revenue growth, which was ahead of our expectation for H1 as indicated at the start of the year, equating to two-year growth of 150%.
Revenue growth in our core UK market continues to be strong, alongside a very strong performance in our International markets, supported by our new distribution centres that have improved our scale and customer proposition across Europe.
We are pleased to announce today the launch of our US$ website, which represents an important stepping stone in our plans for growth outside Europe.
We remain focused on delivering long-term sustainable growth, and raising £4.2m growth capital in May 2017 has enabled us to accelerate planned investment in our operational infrastructure and allowed us to capitalise on the growth opportunities we have identified. As highlighted in previous announcements, we expected increased operational costs and investment in our customer proposition to restrict profitability during H1, but we are well prepared for a busy seasonal period and the Group continues to trade in line with the Board's expectations for the full year."
Gear4music will issue a trading statement in early January 2018.
At 1:15pm: (LON:G4M) Gear4music Holdings Plc share price was 0p at 812.5p