Gear4music (holdings) Share Discussion Threads

[alphabeta4] 23/10/2017 14:47

I'd like some more details on the exceptionals. If profit is nil H1 and eps is estimated at 10p then H2 needs net profit of £2.083m.

If they do 44% sales growth on H2 net profit of last year £1.52m x 1.44 = £2.188m. But there's £700k of new distribution costs so £1.488m looks a miss to me unless some of these costs are unusual or won't scale or there is further operational gearing in the UK business.

Can anyone add any guidance on these??

[luckymouse] 23/10/2017 14:00

not sure that alliance headline is correct?

[ramridge] 23/10/2017 13:57

Expansion in the US will mean more marketing and capital expenditures. Good for the future but not right time to buy. IMO

[luckymouse] 23/10/2017 13:51

700 neckline

[aimingupward2] 23/10/2017 13:44

I see this as a top up opportunity. The company has a good future ahead of it.

[panic investor] 23/10/2017 13:32

Rns's have to be bullet proof - this isn't

[fastbuck] 23/10/2017 13:27

Price cost inflation, expansion of warehousing costs all adding to costs however the bigger story is the launch of the US site, how are they going to fulfil there, a further distribution centre. Big ambitions.

[strollingmolby] 23/10/2017 13:11

Whoops - Edison released their note a day early...

Gear4music (Holdings) plc has become aware that external parties have had sight of certain information from its unaudited financial results for the six months ended 31 August 2017, following a distribution error by a third-party research provider.

As a result, the Group is announcing the results for the six months ended 31 August 2017 below, ahead of the scheduled date of 24 October 2017.



Pleasing numbers in todays results, notwithstanding the previously flagged investment in margin, marketing spend and the distribution centre.

[bones] 23/10/2017 13:11

Results out:

[mirabeau] 23/10/2017 11:12

Write up at Edison's website

While revenue and customer KPIs continue to grow robustly, Gear4music (G4M) is preparing the next stage of expansion. The first half saw the start of the planned investment associated with the May placing, the new head office structure, and the move to positive contribution in the two European hubs. It ends with the launch of the US$ website opening a new front in a larger market, and the company strongly positioned for the key pre-Christmas season.

[suetballs] 23/10/2017 07:17

6 months results tomorrow. Had been considering selling 50 % before last week's fall. Think I'll hold on and and see the news tomorrow.
Suet

[mrx001] 19/10/2017 20:57

A 6% fall is quite substantial but then this share does move a lot on a small number of trades. Looking on the bright side this could be a good buying opportunity.

[themirror] 19/10/2017 19:46

mo big deal, its obvious costs will go up as they expand. DUH!

[butchdogg] 19/10/2017 13:42

From LSE

'Shares magazine out today suggests that recent investment has increased costs and will affect margins in the short term, which we should look out for in the half year results on Tuesday. This isn't exactly news, as it was reported in the Trading Update on 5 September, but I think it's still the cause of the drop.

[mrx001] 19/10/2017 13:36

Anybody any idea why the 42p drop in price today? :0(

[toffeeman] 19/10/2017 12:29

Marked down on low volume - hope it's not a FLYB equivalent next week

[taurusthebear] 18/10/2017 14:04

Thanks. Got in lower down so, as with BOO, prepared to ride out the occasional turbulence, as long as the business looks sound. :0)

[noujay] 18/10/2017 13:56

Well let's hope that longer term this shapes up to be the amazon of online instrument retail. Best of luck

[taurusthebear] 18/10/2017 13:41

Results trading is for the brave. BOO had good results but fell over 25% on slight margin erosion, back to May levels.

I think it's a tad more healthy to look longer term, and have little sympathy for traders. :0)

[noujay] 18/10/2017 12:44

Fair point about the sub £200m but c. 3m in earnings makes this very fully valued. It will be interesting to see what the results offer up but they will certainly need to show more of the same trajectory to support this.I may very well be wrong and new to this company so perhaps next week they will be trading at £10!

[taurusthebear] 18/10/2017 12:25

Same principle as any fast-growing Internet retailer, most of which also have endless detractors, but trade on very high ratings.

High ratings for a company with a market cap. of less than 200 million quid should be taken in context. This isn't Dragon's Den. Ants are smaller than elephants... :0)

[noujay] 18/10/2017 11:27

I'm just looking at this for the first time and given it's not a tech stock or even a disrupter as such beyond discounted inventory, what supports a 75x earnings valuation? Any commentary appreciated, I am intrigued.

[ileeman] 17/10/2017 15:49

New all time highs, looks like its not just me being pre results.

[ileeman] 16/10/2017 16:20

Bought some for results in a weeks time. Looks very bullish.