Gear4music (holdings) Share Discussion Threads

[saracen3] 24/4/2024 09:45

New Progressive note today

hxxps://www.gear4musicplc.com/media/1333/g4m-20240424-fy24-trading-in-line-and-debt-reduction-ahead-of-market-expectations.pdf

[brucie5] 24/4/2024 09:42

Delighted to see that this continues in recovery mode - being a happy customer I can testify to the product and the service. Chart looks poised though I do not hold currently.

[saracen3] 24/4/2024 09:07

A classic recovery stock as costs fall.

[saracen3] 24/4/2024 08:22

Singer has new 199p target

Gear4music (Buy) - has released its Y/E update today and it should be well received. Despite well-documented market challenges, marginal sales declines in Q4 mark an improvement on Q3 and both revenue/EBITDA are in line with expectations. More importantly, it made further progress reducing stock, afforded by cost savings. This drove a £4.5m FCF beat, halving ND to £7m and addressing a pivotal issue. Leverage is now <1x and it still retains £7m freehold. Good strategic progress has been made and profits are not market dependent. The board succession plan announced today looks orderly and should ensure a smooth transition. Ken Ford (CH) and Dean Murray (NED) are to step down after 9 years. Founder/CEO Andrew Wass moves to Exec Chair and Gareth Bevan (CCO) is promoted to CEO. He has 25 years’ industry experience and been with G4M for 12 years. Neil Catto (REVB, ex BOO) joins as NED/SID and the search for another suitable NED is underway. We say Buy on 3.6x EV/EBITDA, and the FCF beat feeds through to an upgraded 199p target price.

[parvez] 24/4/2024 08:09

Management have done a great job focussing only on profitable sales and debt reduction. One to lock away imho

[saracen3] 29/1/2024 11:53

They could sell out to Thomaan or Amazon with one phone call but they see plenty

of future growth when they start trying to rebuild European sales.

[brucie5] 29/1/2024 11:39

Saracen, you're welcome. It seems that Paul Scott was wary at last statement, saying this:

"A loss of £(1.9)m in the seasonally quieter H1, worse than £(1.0)m in H1 LY.

Outlook is in line for FY 3/2024, driven by higher gross margin and cost-cutting, offsetting lower volumes. Strategy is to prioritise profit, not revenue growth, which makes sense to me.

Balance sheet is a bit too dependent on the £24m bank loan for my liking, although overall asset backing is OK, and inventories are high before Xmas.

Paul’s view - it’s difficult to get excited about this company, now the exciting growth has disappeared. I don't see any evidence that previous acquisitions have added value. That said, a £25m market cap leaves scope for a re-rating in the next bull market. FY 3/2025 should benefit from the hefty central cost reductions (IT team scaled back). I can see merit in both bull, and bear cases, so I’ll sit on the fence. AMBER it is for now. I wonder if mgt might tire of the listing, and take it private?"

[saracen3] 29/1/2024 11:25

Thanks for the feedback Brucie . Years of capex over so strong recovery play.

A buyer, or buyers are hoovering up every share sold and house broker Singer is looking for stock

[brucie5] 29/1/2024 11:07

Ordered a trumpet online - very pleased with the product and service. Totally straightforward, no frills, but what I needed.

I notice this part of Bluesky ventura's 2024 selection, along with a couple of other ideas that I also hold.


The chart looks promising; it gets two screens on Stocko and an overall rank of 97, which is outstanding. The negatives seems to be ROE and ROC; and of course, no dividend.

I don't hold but definitely on the watch list now!

[masurenguy] 18/1/2024 08:02

Trading Update update for the three months to 31 December 2023.

-- Total revenue £46.4 (FY £49.5 - 6%)
-- Gross margin of 28.2% (FY23 Q3: 25.6%)
-- Gross profit of £13.1m (FY23 Q3: £12.7m)

Gear4music believes current consensus market expectations for y/e 31/3/24 are revenue of £144.1m, adjusted EBITDA of £9.8m, adjusted profit before tax of £1.3m and pre-IFRS16 net debt of £11.6m.

No current position and unlikely to reinvest unless there is a material improvement in performance. Glad I exited @£6.82 almost 2 years ago.

[scepticalinvestor] 18/1/2024 07:48

Back to a quid on that imo

[basem1] 16/1/2024 12:27

Next TU is key here Need to see that before committing further funds

[saracen3] 09/1/2024 12:27

Chart looking so good. Great recovery play as capex fall will boost margins.

Trading update 18th January.

[saracen3] 05/1/2024 06:45

Someone is mopping up any stock sold. Great recovery play as lower capex will boost margins.
And the chart looks set for a breakout.

[saracen3] 04/1/2024 13:14

WOW just look at the chart, so bullish.

[epicsurf] 22/12/2023 13:18

Hopefully a good sign
British retail sales rose far more than expected in November and at their fastest monthly pace since the start of 2023, suggesting the sector “turned a corner” with help from Black Friday discounts ahead of the key Christmas period.

The quantity of goods bought in Great Britain grew 1.3 per cent between October and November, the Office for National Statistics said on Friday, after two months of no growth or contraction.

[saracen3] 15/12/2023 07:43

Consumer confidence improving says survey.

J U.K. Shopper Optimism Rises at Start of Festive Shopping Season, Survey Says

By Joshua Kirby
U.K. consumers felt increasingly optimistic in December, heralding good news for
spending as the country enters the vital festive shopping season, according to a closely
watched survey set out Friday.
Research group GfK's Consumer Confidence Barometer ticked up two points to minus 22 in
December, continuing a rebound that started in November. This was only slightly short of
expectations for a reading of minus 21, according to economists polled by The Wall Street
Journal ahead of the survey's release.
Though the index remains firmly in negative territory, consumers are clearly feeling
more optimistic, GfK client strategy director Joe Staton noted. High interest rates and
price rises are still eating into disposable income, he said.
"Despite the severe cost-of-living crisis still impacting most households, this slow
but persistent movement towards positive territory for the personal finance measure
looking ahead is an encouraging sign for the year to come," Staton said.
"The nation's confidence is still firmly in negative territory, [but] optimism for our
personal finances for the next 12 months shows a notable recovery from the depressed
[level] reported this time last year," Staton said. In December 2022,the GfK barometer
showed a more sharply negative reading of minus 42.

[saracen3] 14/12/2023 09:50

Interest rates have peaked, great for consumer stocks.

[basem1] 14/12/2023 09:26

They are still selling Must have taken over 200k shares back without reply Someone is keen to fill an order

[basem1] 13/12/2023 10:08

Still sellers Market has done exceptionally well to absorb this stock If it had been 2 months ago the price would of been back at 115p by now

[basem1] 08/12/2023 11:08

Large gap up after 165p Let's hope the trade in service is performing above expectations

[basem1] 08/12/2023 11:06

They have taken a hell of a lot of shares back at this levelGenuine strength Bodes well for a further move north when the buyers are ready Rather be in than out at present

[pockstones] 08/12/2023 09:14

December trading update will do that last year expensive shipping container rates Royal Mail strike would not have helped neither of those this year though give Royal Mail a chance!

[saracen3] 08/12/2023 08:24

Made me chuckle too A break above 165p would be very significant