YORK headquartered music instrument retailer Gear4Music is poised to capitalise on opportunities within its global markets after raising £4.2 million.

The Clifton Moor based firm raised the funds through a share placing last week as it sought to accelerate the execution of the group’s strategy for organic growth.

In a statement to the market Gear4Music’s board said it believes the group is “ ideally positioned to exploit opportunities for further significant growth in its existing as well as new geographical markets”, and that monies raised from the placing would fund additional growth opportunities.

The board said it would deploy the proceeds in a number of areas within the business including a new IT platform, investment in international expansion, including an acceleration of translation activities, supply chain development and inventory investment, and infrastructure investment, including fitting out of the company’s new UK head office in Holgate and further development of the German and Scandinavian hubs.

Andrew Wass, Gear4music’s chief executive officer, said: “We are delighted with the level of support for our oversubscribed fundraising.

“We would like to take the opportunity to welcome new shareholders onto our register as well as thank our existing investors for their continued support.

“We look forward to putting the funds raised to work in the group in executing our organic growth strategy for the business.”

“We are delighted with Gear4music’s recent performance, but there is much more that we want to achieve as a leading global retailer of musical instruments and equipment.

“The placing proceeds will allow us to accelerate our growth strategy, and quickly scale the business to capitalise on the significant growth opportunities within our markets.”

Since its IPO in June 2015, Gear4Music has more than doubled its revenue, with turnover increasing from £24.2 million in the year ended 28 February 2015 to £56.1 million in the year ended 28 February 2017.

The growth in revenue, which has been entirely organic, has also been reflected in the Group’s profitability, with underlying EBITDA and a reported post-tax profit of £3.9 million and £2.3 million respectively achieved in the year ended 28 February 2017.

Bosses described the last 12 months as a “transformational year”, with strong revenue growth in international markets, up 124 per cent, with European operations enhanced by the opening of distribution centres in Sweden and Germany.

The group is set to move to new premises at Holgate Park, taking over office space previously occupied by CPP.