Online retailer, Gear4music, has announced that its total sales for the half-year to 30 September 2021, dropped by 8 per cent to £64.7m when compared to the same period last year. The business saw sales from Europe fall by 16 per cent as a result of ‘post-Brexit challenges’, whilst UK sales fared better.
CEO, Andrew Wass, said: “We are pleased to report that trading during FY22 H1 has been in line with the Board’s expectations which, as previously reported, was not expected to meet the same level of trading as during the exceptional FY21 H1 period that was significantly enhanced by COVID lockdowns.
“Our previously announced new Irish and Spanish distribution centres have now become operational, which following the challenges of Brexit, we expect will positively impact our European sales during FY22 H2 by largely eliminating cross border shipments, and increasing the breadth, strength and capacity of our delivery proposition within Europe.
“The acquisition of AV Distribution Ltd, an online retailer of Home Cinema and HiFi equipment, is on track to complete by December 2021, which will significantly increase the Group’s addressable market size.
“Whilst the musical instruments and equipment market is not immune to global supply chain issues and increased shipping costs, we are well placed to continue minimising the impact of this situation, having deliberately and significantly increased on-hand stock from £23.3m at 30 September 2020, to £30.4m at 30 September 2021.
“As such, the Board is confident results for the full financial year will be in-line with consensus market expectations.”
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