Gear4music (holdings) Share Discussion Threads

[shanklin] 22/4/2021 08:14

A little surprised that Progressive Equity Research have not increased any of their numbers, except predicted cash balance, for either FY22 or FY23.

At least they forecast that revenue in FY23 will be higher than FY21 after a slight dip in FY22.

[largemerlot] 22/4/2021 08:02

As a proud Scot I find myself having to ‘keep the heed’ here.
This update is excellent.
Undoubted upside here.
Hastings it would be good try and get a feel for the gross and net margin drivers in coming years and where G4M think they are in the whole development of margins.
I remember back in the day ASOS doing some pretty good hand holding on margin impacts from warehouse efficiencies,marketing,buying etc - it would be nice to see from G4M as they develop going forward.
Very exciting though 👍

[hastings] 22/4/2021 07:33

Singer puts fair value in a range of £11.00-£14.00. Looking forward to chatting with the CEO this morning.

[gnome3] 22/4/2021 07:31

The profit margins just keep going up! H1 was 28.6%, Q3 was 29.9% and to get to an annual 29.5% suggests that Q4 was 30.9%.

[hastings] 22/4/2021 07:14

Can't ask for better than that, excellent.And very well positioned to drive the business onwards in future years.

[saracen3] 22/4/2021 07:11

Strong trading continues into March and April. Rerating coming.

[masurenguy] 22/4/2021 07:06

Cracking set of results - sales up 31%, EBITA up 148" and net cash of £2.4m !

Gear4music, the largest UK based online retailer of musical instruments and music equipment, today announces a year-end trading update covering the 12 months to 31 March 2021.

£m 12 months to 12 months to % change
31 March 2020: UK Sales: 61.8
31 March 2021: UK Sales: 78.7 + 27%
--------------- --------------- ---------
Europe and ROW sales:
2020: 58.5
2021: 78.8 +35%
--------------- --------------- ---------
Total sales
2020: 120.0
2021: 157.5 +31%
--------------- --------------- ---------

FY21 Highlights *

-- Gross margin improved by 360bps to 29.5% (FY20: 25.9%; FY19: 22.8%)
-- EBITDA now expected to be not less than GBP19.0m (FY20: GBP7.8m; FY19: GBP2.3m), ahead of current market expectations

-- Net cash of GBP2.4m at 31 March 2021 (net debt at 31 March 2020 and 31 March 2019: GBP5.5m and GBP7.5m respectively)

-- Signed a new GBP35m three-year Revolving Credit Facility with HSBC
*Subject to audit. Final results to be announced 22 June 2021.

Gear4music's Chief Executive Officer, Andrew Wass, said:"I am very pleased to be reporting results that are ahead of our previous expectations, representing a transformational FY21 trading performance for the Group, and building on the significant progress we made in FY20. Further improvements in gross margins have driven our profits to record levels, amplified by the previously reported exceptional sales growth and marketing efficiencies which were driven by COVID-19 lockdowns, particularly evident during Q1 FY21.

As part of the Group's ongoing strategy, the new enlarged banking facility will help us to accelerate our longer-term ambitions. As we lay the foundations in FY22 for the next stage of our growth journey, in addition to establishing new sales verticals, we will further strengthen our European distribution network, accelerate investment into our e-commerce platform, and consider acquisition opportunities as they arise. Whilst it is still very early in the new financial year, we are pleased with FY22 trading to date, relative to the exceptional period of trading during April FY21. We also remain mindful of the ongoing global pandemic and operational challenges posed by Brexit, but are confident that we have appropriate plans in place to mitigate their effects. Underpinned by our strong financial position, the Board is confident that our online business model and specialist market knowledge, supported by our Europe-wide operational platform, will continue to deliver long-term sustainable and profitable growth."

[cooltools] 21/4/2021 19:56

And had the price walked down specially for them, surely not ;-)

[aimingupward2] 21/4/2021 15:48

Someone has just bought 27,000 shares. They're clearly confident.

[hastings] 21/4/2021 14:12

Update tomorrow morning and I'm speaking with the CEO so will post something on the back of that.

[saracen3] 21/4/2021 11:43

Figures are going to be very strong. How they see future trading post lockdown all important. Second hand trading platform could double turnover and profits over 2 years.

[johndoe23] 21/4/2021 11:39

Could well be. Buying stock cheaper to sell at a higher price after trading update!Last few trades have all been buys, bid just ticked up...

[cooltools] 21/4/2021 10:15

Just bought below the mid-price, at 808p and below mid yesterday. Is this an MM trick to make a sea of red, thereby frighten PIs? Can see other "sells" at 809, 811, 812 etc but real sells are at 800. That's very low - expecting excellent results in a day or two.

[rathlindri] 19/4/2021 15:17

Things about to get interesting....

[saracen3] 19/4/2021 14:40

92k traded at 819p, overhang cleared just before results.

[rathlindri] 16/4/2021 22:18

I expect share price to be well north of today's closing price this time next week

[saracen3] 16/4/2021 11:44

Yearly figures so will be followed by Institutional Roadshow and broker notes including one from new broker Investec. Should hear more about setting up second hand platform for musical instruments.

[johndoe23] 16/4/2021 11:35

Looks like trading update next week then. My guess would be Thursday 22nd!

[cooltools] 02/4/2021 12:39

all47fish - there seems some confusion when the TU will be out. G4M state by 23rd April. Some think that means possibly next week.

Last year there was a TU on 2nd April, but that merely was a teaser (things going well) with full results published, as promised on 23rd April.

They've done the same this year, with a teaser on 25th Feb.

All looking good.

WalletInvestor, courtesy of a Google search:

CT

[saracen3] 01/4/2021 19:53

I emailed the co this morning to ask about the new joint broker and they replied that it is to increase analyst coverage. I think Investec' analyst knows them of old.

[ali47fish] 01/4/2021 19:27

cool and saracens please explain wht do you mean you rest your case on waht? and who are walletinvestor?

[aimingupward2] 01/4/2021 17:30

So up from 1199P only a week ago. I wonder what has caused the rethink.

[saracen3] 01/4/2021 16:17

Walletinvestor.com raises target to 1295p in next 12 months. They have been very right so far.

[largemerlot] 01/4/2021 15:47

Please note the date
Taken from G4M IR


2 April 2020


Gear4music (Holdings) plc



Year-end Trading Update

Gear4music (Holdings) plc ("Gear4music" or "the Group"), the largest UK based online retailer of musical instruments and music equipment, announces the following trading update for the financial year ended 31 March 2020, following the announcements made on 23 January 2020 and 18 March 2020.

As a result of the commercial and operational progress we have made during the last 12 months, we now expect profits for the financial year ended 31 March 2020 to be ahead of previous expectations.

Following the necessary Government restrictions put in place to tackle the spread of COVID-19, we are pleased to say we have been able to quickly reconfigure our operations to ensure that we are keeping our teams safe. This has been due to the huge effort our incredible staff have made during this very challenging time.

The health and safety of our employees and customers has been our absolute priority, and we have implemented fundamental changes across our business to ensure a safe environment in line with current Government guidance. Our call centre and administrative teams are successfully working from home, and we have implemented a wide range of social distancing measures and safety protocols designed to protect employees working in our distribution centres in the UK and Europe.

The Group will, as previously announced, provide a more detailed trading update for the 12 months ended 31 March 2020 on 23 April 2020.

Gear4music's Chief Executive Officer, Andrew Wass, said:

"Whilst it is impossible to predict what further operational actions may become necessary during the coming weeks and months, we remain committed to operating safely and serving our valued customers for as long as Government guidance allows. In addition to the economic benefits of uninterrupted trading, we are driven by the knowledge that learning a new instrument or improving musical skills can bring enormous mental wellbeing benefits to people of all ages, particularly in challenging times like these."