Gear4music (holdings) Share Discussion Threads

[ali47fish] 04/8/2024 16:27

act remember info is for subscribers and you should not put the information here !!!!

[pockstones] 04/8/2024 15:25

Office location probably requires a staff canteen not sure I view it as an extravagance probably gets you back to work quicker than going offsite

[actscap] 04/8/2024 14:18

Saw this tipped on SCSW. Had a rummage around their website and saw a vacancy for a sous chef? Their head office strikes me as a little small for an in-house catering team, no? I know it's odd to flag, but doesn't feel v cost savvy... perhaps good for employee retention. Weird that this popped out to me

[rathlindri] 09/7/2024 18:20

After months in the doldrums it's great to see this coming back to life : Fingers firmly crossed 🤞

[saracen3] 09/7/2024 10:20

Gear4Music now trading at a 2 year high and look at the chart.

The new Labour Government is promising to cut red tape for exports to Europe just as the company is flicking the switch to sales growth there.

A great recovery stock.

[saracen3] 28/6/2024 11:15

Largest sale today £2000 Thanks for your input

[blackhorse23] 28/6/2024 10:54

Switched to RNK [better change to capital gains] 4 brokers issued strong BUY

[ali47fish] 27/6/2024 12:01

the test for this one is to maitain the share price by the time it reports again which it has been failing to do

[saracen3] 27/6/2024 11:36

Chart looking so good. Turning on the sales growth switch after considerable cost cutting of IT spend.

[cirlbunting1] 26/6/2024 12:08

Just missed out on this... i even moved my limit to 1.25 but still wasnt filled. Extremely hard to keep on top of things when you're on holiday.

[rathlindri] 25/6/2024 21:44

Hopefully another decent rise tomorrow as the herd catch up with the good news,,,,,,,

[saracen3] 25/6/2024 17:05

Restarting sales growth in Europe now they know how to overcome the red tape.

Also price cutting from others seems to be over so G4M are happy to compete again.

[rp19] 25/6/2024 16:51

Progressive have 2026 EPS estimated at 20p, which is some uplift from prior years.

[saracen3] 25/6/2024 16:49

So much more to come here Fantastic recovery situation

[saracen3] 25/6/2024 08:14

Progressive note out

www.gear4musicplc.com/media/1338/g4m-moving-onto-the-front-foot-to-drive-profitable-sales-growth.pdf

[saracen3] 25/6/2024 07:15

More detail from Singers

Gear4music (Corporate). Has issued prelims and a positive growth strategy. On sales that declined 5%, adj EBITDA increased 34% to £9.9m or £7.8m pre-IFRS16, a 190bps margin uplift to 5.4%. Adj PBT improved £1.5m YoY to £1.1m (vs £0.4m loss LY) including a £0.2m non-cash FX charge. Given further progress was also made optimising w/c, with stock down £9m (25%), G4M delivered a £4.5m cashflow beat versus expectations prior to the pre-close. ND reduced £7.2m YoY to £7.3m, and by £17m over 2 years. A great performance and it still retains >£7m freehold property. Enhancements to its tech platform and distribution network in the last couple of years have increased the group’s competitive advantage. Following decisive actions to also improve margin and efficiency, G4M is therefore well-placed for profitable growth, and has refreshed its growth plans. These are built around 1) Transforming its platform, with AI at its core, 2) Enhancing its product offerings, 3) diversifying its channels to market, and 4) Expanding its sales verticals. With a lot of the investment and changes having already been implemented, this gives G4M a clear and profitable growth runway. G4M is confident in delivering further improvements in performance. We make no change to Mar’25 forecasts, which assume >150% EPS growth underpinned by improved margins and cost initiatives, which only delivered a part-year effect last year. On balance we see potential risk to the upside. We have introduced Mar’26 forecasts, assuming 55% EPS growth driven by <4% sales growth and a 30bps EBITDA margin uplift to 6.4%. We expect G4M to have nil ND. We also give an illustration for Mar’27, outlining scope for 20p EPS (70% 3-year CAGR) and inflect to net cash (£5m). G4M trades on 3.3x EV/EBITDA reducing to just 2.7x next year, helped by the substantial ND reduction. After rolling forward a year, and using an unchanged multiple of 5.0x EV/EBITDA, our 12 month target price has been upgraded by 23% to 245p. This is the second upgrade in 2 months and still leaves plenty of room for future rating expansion as confidence in profitability, leverage and growth builds
Download Gear4music (G4M LN) - Turning up the volume – add to playlist - Buy

[epicsurf] 25/6/2024 06:31

Thank you Saracen3

[saracen3] 25/6/2024 06:28

Gear4music (G4M LN)

Follow to open report

Retail | Corporate Client

Mkt cap:

£27.3m | CP: 130p | TP: 245p
Turning up the volume – add to playlist


G4M has successfully improved margins, profitability and FCF. Alongside w/c optimisation, there has been a significant reduction in ND, which we now expect to reduce to nil in 2 years, addressing a pivotal issue for many investors. Enhancements to its tech platform and customer proposition have been made, and strategic initiatives are now starting to bear fruit. This gives management the confidence to refresh its growth strategy, which points to a 3-year EPS CAGR of c70%. Trading on 3x EV/EBITDA and with a PEG <0.2x now is the time buy, with a near 90% TSR on offer compared to our target price which has been raised for a 2nd time to 245p.



Analysts:


Matthew McEachran: Direct: [phone] | Email: [e-mail]

[saracen3] 25/6/2024 06:17

Excellent update Singer lifts target to 245p 11% line traded yesterday, seller must be kicking himself.

[saracen3] 24/6/2024 21:50

Figures tomorrow. The best recovery stock on AUM. Abs a takeover target

[tole] 24/6/2024 19:22

That's quite a chunk gone through at the close. Overhang gone. Interested to see who has picked up that 10% holding

[ali47fish] 20/6/2024 11:20

when are the results due

[saracen3] 20/6/2024 09:22

Softer sales but offset by higher margins.

[cirlbunting1] 20/6/2024 09:11

Limit set at 1.2. Will look to build a position.

[ali47fish] 19/6/2024 07:43

so what 's the prospects from tomorrow's results here