Gear4music (holdings) Share Discussion Threads

[elpirata] 12/5/2020 19:57

thats one of G4M's main UK competitors just hit the dust, their last reported turnover was £22m. Would make a good bolt on if picked up from KPMG

[edmondj] 29/4/2020 07:52

Lidl is keen for us all to treat our neighbours to the full orchestral experience, so it's selling a whole range of musical instruments:

[adamb1978] 26/4/2020 20:51

Owned this for a few years ago before selling in early 2018, largely due to my concern about the increase in leverage at that time and with minimal profits to pay the debt off.

Just had another look through them as I'm looking to reinvest some cash - the real problem which I have with their recent trading statements is the comment about cash being at least £7m. They don't disclose the debt position, which they could easily have done so its hard to assess whether leverage is still a problem - just saying the cash position is pretty mis-leading (though I accept that it gives confidence over liquidity).

The £7m EBITDA likely means something like £3m EBIT, so a 3% margin-ish. At that sort of margin, the business shouldn't really be carrying any leverage as it makes the company's future hugely vulnerable. If they could ever find a way of increasing margins by a couple percentage points then the share price would fly, but at the moment its one problem away from a rescue rights issue at a fraction of the current price IMO

All the best for holders - you're braver than me!

Adam

[netcurtains] 24/4/2020 09:30

Gear4Music does appear to being doing quite nicely this week. I think this is because the MONTHLY RETAIL figures have come out and it appears that ONLINE retailers have all done very well...

early indications are that online spending has also performed better than predicted

[discodave4] 23/4/2020 17:40

No probs.Just had another look and looks like pre tax profit of about £2.4m. So looks like their new strategy of margin not volume is working.Hope it comes good for you.

[niggle] 23/4/2020 17:08

Thanks Dave, I do hope so as they have a history of not making profit!

[discodave4] 23/4/2020 10:32

Should have researched a bit more before posting!.Consensus forecasts were Rev £130m and net profit £760k, so somethings materially changed since 2018 or profit forecasts are miles out.

[discodave4] 23/4/2020 10:10

niggleHeld these a couple of years back and just had another look.Not up to speed with how things may have changed but looking at 2018 year end results they made £1.3m post tax profit and EBITDA was £3.4m, so could be about £2.6m profit this year. Just a quick look as I say so please DYOR as could be miles out.

[niggle] 23/4/2020 09:45

We all know what it is - and it's not profit. What's the profit?

[netcurtains] 23/4/2020 09:34

Lets rock and roll!

[netcurtains] 23/4/2020 09:33

Earnings before interest, tax, depreciation and amortization (EBITDA) is a measure of a company's operating performance. Essentially, it's a way to evaluate a company's performance

[niggle] 23/4/2020 09:15

EBITDA isn’t profit. Have they made a profit?

[netcurtains] 23/4/2020 09:10

Will be an interesting day today for this share.

[andyview] 23/4/2020 08:48

I’ve added a few more of these today,

Gla

[netcurtains] 23/4/2020 08:36

If we have to be locked inside there is no better hobby then learning a musical instrument.

[saracen3] 23/4/2020 07:48

Great looking chart, stand by for upgrades

[netcurtains] 23/4/2020 07:37

edmonda: I like this paragraph:

I am extremely grateful for the extraordinary hard work and commitment our teams have demonstrated, which has allowed us to successfully satisfy the high demand we have encountered since late March, as an increasing number of people recognise the benefits that playing musical instruments can bring during these difficult times.

[edmonda] 23/4/2020 07:33

#G4M sales increased by 9% to £120.3m. EBITDA is expected to be at least £7.0m, which is well above our most recent £5.7m forecast, with H1 gross margins increasing by 250 basis points. Hard work paing off:

[netcurtains] 21/4/2020 12:16

If Amazon is a portal (and warehouses) for selling general "gear" (Gear4Gear) and its currently at more or less an all time high, then it is possible (touchwood) that Gear4Music might also be within this all time high boom period. We just dont know, too many unknown unknowns....

But I thought worth a small punt (but dont bet the shirt on it).

[toffeeman] 21/4/2020 08:44

I closed the curtains and applied a filter many, many months ago.

[netcurtains] 21/4/2020 08:12

Yes Glavery - Even to this day net curtains are the biggest selling software for windows - Bigger than Microsoft.

[glavey] 21/4/2020 07:31

Drawn to it, netcurtains?

[netcurtains] 20/4/2020 10:00

I've joined you ...
I cant think of a better lock down hobby.

I feel I'm helping the world be a better place and hopefully
a tad richer.

Thanks for the info on this share.