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Online music-equipment retailer Gear4music slashed half-yearly losses on higher revenue and margin growth.
For the six months ended 30 September 2019, pre-tax losses narrowed to £279K from £545K reported in August last year, and revenue increased by 16% to £49.4m.
Gross margin increased from 22.7% to 25.2% in the half as the company focused on restoring profitability toward historic levels ahead of the peak seasonal trading period, with own-brand product sales accounting for 27% of product sales, up from 22%.
'Having appropriately reconfigured the business, we now expect gross margins to be higher and revenues to be lower than previous guidance, reflecting our focus this year on building a sustainable platform for growth in all areas,' said Andrew Wass, chief executive officer.
'We believe that this is the right strategy for the delivery of long-term shareholder value and we remain confident that the business is well-positioned to trade in line with our full year EBITDA expectations.'
At 9:55am: (LON:G4M) Gear4music Holdings Plc share price was -20p at 222.5p