YORK music retailer Gear4Music is performing ahead of expectations with 70 per cent rise in international revenues as the company achieves an “important stepping stone” for growth outside of Europe.

Announcing its interim results for the six months ending August 31, 2017, the company attributed an overall 44 per cent rise in revenues to £31.2 million, to international sales growth, rising website traffic, and improving conversion rates.

The company, which during the period completed a head office relocation from Clifton Moor to CPP’s former offices in Holgate, reported a 36 per cent rise in gross profits to £7.8 million.

However operating profits were down £860,000 from the same period last year, which the company said was down to its “investment in margin and administrative expenses” which included £700,000 related to European distribution centre administrative expenses.

Andrew Wass, chief executive at Gear4Music said: “I am very pleased with these results which combine tangible strategic and commercial progress with 44 per cent revenue growth, which was ahead of our expectation for H1 as indicated at the start of the year, equalling to two-year growth of 150 per cent.

“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 £4.2 million 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 has distribution centres and showrooms in York, and Sweden and Germany.