Gear4music (holdings) Share Discussion Threads

[rugby] 14/1/2019 17:14

buywell3, unfortunately for g4m, they pay no tax for the fees to be deducted from.
They form a business expenses on either cost of sale or admin but if you have no tax liability and are loss making like G4M,then they from a real charge against your business.

[buywell3] 14/1/2019 17:07

I thought 10% was what EBay charged too Rugby ... so I guess Amazon matched them because EBay were there first were they not ... well in trading terms anyway.

10% does seem very cheap though when I think about it

Something does not add up here

Perhaps sizematters would like to work the 10% charges and tax deductibles into some numbers for us for the coming year

[tsmith2] 14/1/2019 17:03

any of the loonies short...?no balls or conviction

[tsmith2] 14/1/2019 17:01

Huge losses at a breakeven of £1.9, lol.#cretin#looney

[rugby] 14/1/2019 16:49

We all feel sorry for your horrendously timed ramping of G4M and your heavy loss here Tsmith2.
Look on the brightside,once blackrock have dumped another 10% in about 6 months time you may get a bounce from 70p

bUYWELL- amazon and ebay circa 10% but is a TAX deductible as cost of sale or admin depending on your accountant!

[buywell3] 14/1/2019 16:47

Anyone holding Amazon ?

Size matters it seems ... in spades ... control of various sales in differing markets and in a variety of countries ... but at a price for the seller

Can anyone post the exact commission Amazon charges and EBay for selling other limited companies goods ?

This is key you see

[tsmith2] 14/1/2019 16:41

whoops ignore I see what you mean.Meant to a whole load of individualsI thought you were referring to certain posters..

[s1zematters] 14/1/2019 16:41

you prove my point with such ease!

[tsmith2] 14/1/2019 16:40

Rent a boys?

[s1zematters] 14/1/2019 16:38

isn't it funny. On one hand i set out and articulate my posts with facts and figures from the company along with my thoughts and opinion, inviting discussion and debate.
On the other the G4M fanboy is totally unable to explain in his own words anything about G4M and seems almost jihadist in his believes here, trying to stifle debate.

Smith, why do you find yourself unable to either rebuke or acknowledge anyone's posts and instead remain faithful to almost your tourette's style copy and pasting of the same words that in the context of the previous posts have no context whatsoever and are just moronic?.

Why are you unable to revert like a normal adult human being?

[kemche] 14/1/2019 16:38

Individuals for sale?

[tsmith2] 14/1/2019 16:35

To understand ONJohn all you need to do is read his post 1389 on SOS board..SOS being an online retailer that sells a whole of individuals like any online retailer does..

[tsmith2] 14/1/2019 16:32

Loonies out in tandem..

[rugby] 14/1/2019 16:32

could see below 150 tomorrow! actually scrub that we could see 130p tomorrow!

I hope this Scott lady has not bet her frock on this share!

[tsmith2] 14/1/2019 16:31

Have a read, if you don't under get an adult to read it to youWe are pleased to have delivered strong sales growth of 41% over the last four months, building on the 36% sales growth achieved in the first half of the year. In addition, our strategic initiative to expand in to Europe has shown further good momentum, with sales growth of 47% in the Period, an increase from 39% at the half year.We have seen high levels of consumer demand alongside positive margin momentum, but sales growth has been constrained by our UK logistics operation reaching maximum capacity during our peak trading period between Black Friday and Christmas. This capacity limitation means that sales growth during the Period has not fully compensated for the lower product margins as we hoped. We are already working on plans to further expand our UK distribution capacity ahead of our peak trading period next year and we are confident that this can be achieved by Autumn 2019.During the Period we successfully relocated our Swedish operation into a larger facility, and now have significant capacity headroom at both European locations, supporting the strong consumer demand we are seeing. We expect this high consumer demand and strong sales momentum to continue over the remaining three months of the financial period and into the next financial year.Our focus has been on gaining market share in what has been a highly competitive environment, and in support of this target and following a period of planned investment, margins during the Period began to return towards historical levels. We are confident of further improvements as we progress through FY20.We remain confident that our approach of building a larger business as quickly as possible will put us in a strong position, as the market undergoes further consolidation going into FY20 and beyond. We will also continue to invest in building scale and improving our customer proposition with planned investment in our logistics, systems, products and websites. We have a clear strategy of targeted expansion and remain confident of the continued long-term growth opportunity alongside an expectation of a return to increasing profitability."

[tsmith2] 14/1/2019 16:30

You do talk utter sh*te

[onjohn] 14/1/2019 16:17

Gross margin decline excerbated by warehouse issues


Maybe need to upgrade but cant cos cash tight on wafer thin margins

[onjohn] 14/1/2019 16:16

Another hammering in store tomorrow morning

wont surprise to see it open at 120p

[s1zematters] 14/1/2019 15:26

Gross margin was already falling as stated in the last results.
The company told us that this was due to them being 'competitive on branded goods'.
They also said they have invested money in Observing competitor price points, presumably so they can at least price match them.
The problem with this approach of driving sales by undercutting everyone else is that G4M has high Admin costs as a ratio to sales, as can be seen from the last results. They are actually larger than Gross profit at £9.96 million for the six months of H1 on sales of £42 mill..
So the reality is, if they are matching prices from competitors just to gain sales growth and that competitor enjoys lower admin costs,G4M could well be selling these goods at an actual loss once their own admin and plc costs are factored in

The crux of the problem here is that branded high end goods have very low margins,even before price matching.
If the majority of growth is coming from this area (like the company told us it is ), the margins are going to be minuscule on that branded sales growth and will probably have very little effect on overall earnings and highly dilute own brand margins when taken together on all sales.






-- Gross margin of 22.7% reflects a strategy to gain market share of branded products during a highly competitive period, early indication of increase in H2

-- Own-brand revenue growth of 28%; Other brand growth of 40%

[tsmith2] 14/1/2019 14:59

It's a hugely fragmented market and one only really now seeing a big transition to online sales in very material way.G4M are grabbing market share and (are rightly) spending a high % of sales on marketing and advertising to win market share.You can't say the top line growth has faltered, quite the opposite

[1desert] 14/1/2019 14:39

Sales acceleration a very positive to take large parts of the revenue in this industry after all supplies of the gear is very easy from China and India.

[tsmith2] 14/1/2019 14:37

Operating from a Head Office in York, a Software Development office in Manchester, and Distribution Centres and showrooms in York, Sweden and Germany, the Group sells own-brand musical instruments and music equipment alongside premium third-party brands including Fender, Yamaha and Roland, to customers ranging from beginners to musical enthusiasts and professionals, in the UK, Europe and, more recently, into the Rest of the World...

[1desert] 14/1/2019 14:35

Needs to open online warehouse in European country before Brexit to avoid sales tariffs of Europe.
On way to conquer online distributor business in the music industry and once the sales accelerate a takeover will be imminent by a corporate from North America to sell into a massive European market.

[tsmith2] 14/1/2019 14:34

Yes please