Share Name Share Symbol Market Type Share ISIN Share Description
Gear4music (holdings) Plc LSE:G4M London Ordinary Share GB00BW9PJQ87 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 950.00 158,732 08:00:00
Bid Price Offer Price High Price Low Price Open Price
930.00 970.00 950.00 950.00 950.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 157.45 14.64 60.30 15.8 198
Last Trade Time Trade Type Trade Size Trade Price Currency
15:53:10 O 310 965.00 GBX

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Gear4music (holdings) Daily Update: Gear4music (holdings) Plc is listed in the General Retailers sector of the London Stock Exchange with ticker G4M. The last closing price for Gear4music (holdings) was 950p.
Gear4music (holdings) Plc has a 4 week average price of 945p and a 12 week average price of 860p.
The 1 year high share price is 1,020p while the 1 year low share price is currently 445p.
There are currently 20,867,121 shares in issue and the average daily traded volume is 12,631 shares. The market capitalisation of Gear4music (holdings) Plc is £198,237,649.50.
aimingupward2: It's perhaps worth noting, too, that the share price now, for all that it has risen strongly over the past 12 months, is still only marginally above where it was at the peak in 2017 - a year in which it made an eps of 11.5p. We're looking at nearly 5 times that for the year just ended. I don't think there is any prospect of the share price rising pro rata to that, but it certainly does suggest that there could be quite a way go to before it starts to look 'toppy'.
saracen3: Hasting`s comments. G4M IS A BIG HIT - 22/04/21 There has been a pre-close update from G4M this morning, that paves the way for the delivery of what will be superb full year 2021 numbers. In the announcement, the company has once more indicated a beat on broker forecasts, that were in themselves upgraded on a number of occasions throughout last year. Now, the online provider of musical instruments anticipates full year revenues to come out at £157.5m representing a 31% increase on last year. Additionally, EBITDA is to be no less than £19m which is a 6% beat on broker Singer’s forecast of just two months back. Net cash is also expected to register higher, with the same broker now looking for a £2.4m position which is expected to move further northwards in the new financial year to £5.1m. With Singer now pencilling in EPS of 54.6p for the year to be reported, then even allowing for a rise to £8.50p today, the shares trade on a very attractive PER of just 15. Of course, it is evident that some investors are looking at the expectations for the coming year and indeed the following full year 2023, which shows at present, the shares trading on a more punchy rating. However, from a personal perspective as a holder, I believe the expectations are set very conservatively, whilst whatever the delivery of those transpires, I am looking beyond the near term with undoubted excellent growth prospects on the horizon. To glean a little more as to the last year and the way forward, I again caught up with CEO and founder Andrew Wass, who incidentally retains a very considerable holding in the business. Wass, as ever, with feet firmly on the ground said “The year has been good for us, lots of progress, but some lessons were learnt pretty quickly too, as there were some operational challenges along the way”. Speaking of specific issues Wass says, in particular there was the homing in on how to use the various levers in order to get the business in a great place, which has proven successful, with strong margin improvement a major part of that. With 2021 now in the past the CEO is keen to look to the future, where he says that they are really keen to talk about the next phase and beyond Covid. As part of that moving ahead process however, investors will no doubt be wondering whether the marked and notable improvement in margins can continue on the recent upward trajectory. “I don’t think we will quite repeat what we have done in the past year” says Wass, “but I do think we will retain a lot of the improvements that have been made, so we may not get to where we have got, but I think you will see very good progress”. At this stage of the year and with Covid still causing disruption it is perhaps understandable that Brokers at present, are deciding not to revisit the 2022 numbers, but that will no doubt happen in due course. What does appear clear is that changes were already taking place to the positive for G4M before Covid hit, so the market dynamics remain positive for both the medium and longer term plans. Touching on the coming year and beyond the CEO adds, “its great that we have been so cash generative and alongside that we also have the new banking facility and that will help the next stage of growth. Regarding the facility that we’ve now got, we won’t be using a large amount of that, but it gives us options and flexibility and will make a really big difference. We have never really been in that situation before and I do think that is going to help us in the next year”. Although organic growth remains an absolute key aspect within the operation, Wass says that the main focus of the facility is to provide support for acquisitions and the company has already recently acquired a brand that was previously owned by Marshalls. Although this was a small purchase that did not warrant a release, the CEO says that it was nevertheless a good buy with a rich heritage. “That is something we could do more of” he adds, “so if we could buy some legacy brands that actually have a really good history but have perhaps not done so well of late, we can then do something with them”. In terms of acquiring another player, Wass says that they are less interested in that route and the plan is to incorporate any further brand purchases into their own, which provides for improved margins. It appears a clearly defined vision and roadmap for G4M and Wass says that he sees that direction of also being a good route of building on the margins achieved over the last year. “We would much rather go that way than perhaps purchasing another retailer that may be struggling, as that can bring its own integration challenges.“ Here, the CEO reiterates that they do not want to get distracted from organic growth and within that context he points to investment in their own digital presence along with next years move into the previously mentioned second hand offering. Being an increasingly global operator with a major presence in Europe we also touch upon the post Brexit issues, particularly around logistics and red tape. “It was always going to be a bit of an unknown, but we had lots of mitigation systems in place that have worked very well. But, you can’t get away from the fact that sending goods across borders is more difficult than it was and while it has worked ok, it could be better, which is why we have referenced on building on our existing European infrastructure“;. Wass also says that they have so much more information in place now, that with their digital investment they can scale up quickly with the pay back on that being a fast one. Although a predominantly UK/European operator G4M does have sales in ROW territory’s but Wass says that it is a smaller part of their operation due to complexity of transporting goods of size. That said, he adds that G4M does enjoy sales right across the globe at the smaller size product end of the market. Interestingly, the US is mentioned too, with the CEO saying “eventually we would love to look at the States, but that is a few years off yet”. Looking at the start to the current year, it appears to have commenced well and Wass says that as part of that they have already seen evidence of recovery for products related to events that last year took a hard hit. “Speakers and the PA market, yes, we are seeing much more interest and activity with that, which is what we expected and have been planning for, although we feel there will be a gradual improvement in that as we move forward ”. Although G4M is set to deliver bumper numbers for the year just gone, it is clear that Wass and his team have no intention of getting stuck in the groove. Rather, there is clear evidence that a combination of scaling up on the back of extensive digital enhancement driving organic growth, along with shrewd strategic acquisitions, should keep it well tuned into ongoing and longer term revenue growth and improving sustainable cash generation. Given the ongoing prospects at G4M, the shares are well worthy of my continuing holding for the longer term, which should, all being well, provide for further and potentially significant upside. 53 views 0 comments 3 likes. Post not marked as liked 3 Recent Posts See All SOURCEBIO INTERNATIONAL - WHEN CHEAP MAY NOT PROVE EXPENSIVE - 21/04/21 When a stock trades on a low single digit PER and the shares appear unloved, there is usually a very good reason for such a discounted rating holding sway. In many such situations, the company concern 185 0 6 likes. Post not marked as liked 6 SYSGROUP TRADING UPDATE - KEEPING OPTIMISTIC - 19/04/22 SysGroup, the managed IT services and cloud hosting provider, delivered a pre-close Trading Update to the market this morning that suggested the company is well placed for growth in the coming years. 320 0 2 likes. Post not marked as liked 2 CONCURRENT TECHNOLOGIES EYES GROWTH - 14/04/21 Earlier this week, Concurrent Technologies (CNC) delivered its full year results to December 31st 2020, which came out slightly ahead of broker Cenkos expectations. It was therefore perhaps a surprise 340 0 2 likes. Post not marked as liked 2
aimingupward2: It rises a lot between updates, though - look at the last 12 months. If. as seems likely, eps come in at 50p or more, the shares are on a very modest P/E ratio of approx 16 and we can expect share price growth of around 50% over the next 12 months towards the £12-13 price targets. The share price is not going to stagnate.
glavey: HF, "Also, what’s stopping G4M from becoming the Asos or BOO for musical equipment/instruments?" At first it may seem strange to compare G4M with clothing retailers however their typical client may be of a similar mind-set. So perhaps they already are. AIUI, the clothes are normally only worn a very few times and are made such to address a youth market. People age. Circumstances change. Tastes change. Some even become more discerning (I was going to write "sensible"). Unlike BOO (and perhaps ASOS), G4M don't have product run-up in the UK. Perhaps consumers in Europe are a little more discerning. The EU has Thomann (for example) as a similar online outlet. Been around a while and still private. I don't expect anyone to agree with me, particularly in these markets. The share price may elevate further if conditions support it. I may know nothing. Maybe MG is an expert in this field. Perhaps G4M is in a down cycle now and there's an up cycle coming. So why not buy the dip.
hawfinch: @Glavey, all businesses have up & downs. No doubt that G4M has benefited from the pandemic. Given that, I can understand progressive’s forecasts in a lower turnover and EBITDA expectations for FY22+. I can see both the bear and the bull case. Bear case being: lockdown has spurred e-commerce purchasing which many believe is unsustainable at the current levels going forward, thus you should see a natural reversion to pre-lockdown levels or slightly better. In addition to that, from a macro perspective: furlough must end, which will ultimately lead to job losses, higher unemployment, resulting to less disposable income which in turn means less musical equipment purchases (if it does come to that – who knows). Coupled with the fact that Mr. Sunak will have to increase taxes to pay off some of the debt incurred which again, would most likely lead to an amazon tax (in my opinion). G4M would have to pass down the cost to the consumer, making their products more expensive. Finally, Brexit. If you go onto twitter, you’ll see a lot more people complaining to G4M about their delivery times. There are some tweets where consumers highlight that delivery times are taking up to 2 months long for their products to reach them. Now, when things open back up, why would someone wait that long when they can go to a retailer & purchase it (if its available) and for a cheaper price (if the amazon tax does hit). Again, I’m assuming that the item is available at a brick-and-mortar musical store and it’s cheaper. Also I’m assuming the delivery times continue to be a problem. Bull case: Average order frequency will increase with G4M, regardless if lock-down has ended. Many customers will purchase from them again due to the relative convenience, easiness and number of products G4M offers. Also, what’s stopping G4M from becoming the Asos or BOO for musical equipment/instruments? Their conversion rate is already better than Asos & BOOs. In addition, the blueprint for G4M is there. 40% of Asos’ revenues come from its own products & not its third-party suppliers (and this is increasing). G4M, I believe are doing the same thing. I think you will soon start to see G4M creating more of their own products and cutting down on third party suppliers. Finally, in regards to online sales. In the UK, online sales are currently ~28% of total retail sales (that’s not including specific product categories such as music, which I believe is slightly higher ~30%.) I do believe this trend will see a drop, but I do not reckon it will revert back to 2019 levels. There’s clearly an upward trend. I see online sales in future being close to 40 or 50% in the next 5 – 10 years. & As you’ve highlighted, Glavey “there's been some consolidation over time”. My guess is, we will see more consolidation as G4M start to expand (M&A activity etc). As long as ROIC remains higher than cost of debt. Also, bear in mind this is just the UK. Now, if we look at Europe (in 2019) many countries are behind in online sales as a % of retail sales (France & Germany being the obvious). I reckon it’s only a matter of time that before they catch up to UK or even overtake in that matter. Remember, EU represents a £4bn market. I see both cases, but I feel the bull case is stronger. Hence why I am long. Online Data:,_2019_(%25_enterprises).png#filehistory
glavey: CT, Let's just consider G4M and not debate Amazon. The music business (general title) has it's ups and downs. G4M has benefited from the pandemic. People have been making impulse purchases. Particularly, I'd guess, in support of their virtual lifestyles. Competition has been suspended. That's unusual. It may not remain the case. G4M is just a reseller of product and I feel is deserving of a rating which reflects that. Future expansion is uncertain, although I feel the average customer is not particularly discerning nowadays which is quite suitable for an on-line operation happy to operate sale or return. Another client segment is reliant upon supplier credit which requires client income to support it, so may be affected by unemployment. There is a need for other outlets who can offer a similar kind of service (perhaps more 'hands on') and those who offer different kind of service. These businesses already exist and have done for years, although there's been some consolidation over time. G4M is unlikely to be able to service this more discerning client segment well as far as I can see. So I just see them a box shifter selling mostly lower price point product, grabbing a little extra revenue by overpriced 'add-on' sales. Maybe that relies on a certain amount of buyer laziness, naivety or perhaps even stupidity. Plenty of that around in recent times so a plus for G4M. Going forward it seems many of us have a pandemic to pay for. Who knows, that may sharpen people's minds. Significant growth is already priced in, at least in the eye of beholders. Will that prove justified? Maybe short term. Medium term?
cooltools: Glavey - how do you see G4M as overvalued? Contrarian/negative views most welcome - we need to keep our feet on the ground! Personally, I see Amazon and eBay as more similar to each other than G4M. Amazon does not curate - all info is entered by sellers and reviewers. G4M curates, that is, it creates the pages for the products it's selling (Amazon is almost entirely automated). Just compare the listings for electric guitars - hTTps:// with Amazon's - hTTps:// - a world of difference, G4M is helpful and guides you though choices, Amazon just displays stuff (mostly sold by third parties through their "marketplace" and "fulfilled by Amazon"). Prices are similar but I suspect G4M has better margins as the cost of getting eyeballs on Amazon to third party sellers is significant (note the "sponsored" - i.e. paid for listings) plus Amazon's cut for selling on behalf of the third party. G4M buys direct from manufacturers, so skips the intermediate third-party seller level. Therefore G4M can price match where competition exists. There are competitors to G4M working in a similar way (UK and Europe), but G4M really know their stuff (LTH since 138p in 2016).
aimingupward2: Very low volume of trading this morning, but mostly buys, so putting the price down by 35p seems to be perverse. Possibly the mm is wanting to build up some stock and hopes to scare a few people into selling. Not much chance of that, I would think, so it's quite likely the share price will revert later on in the same way as it has been bobbling about for the last week or two. I doubt if any breakout will happen until we near the year-end trading statement early in April, but do expect that to send the share price on upwards again. Good time to add, imo.
martywidget: Alphabeta4, see here: Small Cap Value Report (Tue 23 June 2020) - SHOE, G4M, SCPA, RMV/OTMP htTPs:// From the above Google cache: Gear4Music Share price: 390p (up 22% today, at 10:29) No. shares: 20.95m Market cap: £81.7m (at the time of writing, I hold a long position) Final Results Gear4music (Holdings) plc, ("Gear4music" or "the Group") (LSE: G4M), the largest UK based online retailer of musical instruments and music equipment, today announces its financial results for the year ended 31 March 2020. The company gave a year end trading update, which I reported on here on 23 April 2020. Comparing the actual results today, with the previous trading update goes as follows; Revenue: as expected at £120.3m (NB. this is up 2% against prior year, which was a 13-month period. It's actually up 9% on a properly comparable 12-month time frame) Gross margin: as expected at 25.9% (up 310bps on LY, as the company's stated strategy is to increase margins, rather than chasing low margin sales growth - this strategy has clearly worked well, kudos to the team!). Note from the commentary that G4M absorbs £8.8m of delivery costs into cost of sales. By my calculations, stripping out delivery costs means that the product margin rises to a more respectable 33.3%. Average basket size is quite high too (compared with, say higher margin online fashion), at £117. EBITDA: looks like a beat, with £7.8m reported today, versus "not less than £7.0m" expected. Current trading & outlook - this is probably the main reason for today's sharp share price rise. This sounds excellent; ... we have experienced exceptionally strong trading at the beginning of the current financial year. With the shift from high street to online consumer shopping continuing to accelerate, we remain confident that our business is appropriately configured to achieve long term profitable growth, and that we are in a strong position to build upon the excellent progress we have made during FY20. Management at G4M are not given to hyperbole, having a good track record of telling it like it is. Hence when they describe current trading as "exceptionally strong", then I sit up & take notice, and so has the market by the looks of it. Broker upgrade - many thanks to a friend who flagged up a large increase in forecasts this morning from the house broker, very helpful. The existing forecast for FY 03/2021 is 10.6p. This has been almost doubled today, to 20.4p EBITDA comparisons - the only thing I don't like about these figures, is how the EBITDA comparison doesn't compare like with like. The impressive-sounding £7.8m EBITDA for FY 03/2020 isn't comparable with the £2.3m last year number, because this year is boosted by IFRS 16, and last year suppressed by IAS 17. The real comparison (as shown in a footnote, to be fair) is £7.8m TY, £3.7m LY. Still good, but as a general rule, I feel that tables should only ever be presented with truly comparable numbers, not numbers distorted by anything. My opinion - this is very pleasing indeed, to hear that the company is trading so well. The only potential issue, is that trading may not remain quite so exceptional once schools go back, it must have benefited from kids being stuck at home during lockdown. that said, I hope the surge in interest in making music continues. We severely undervalue the big social benefits from teaching music to children. Making music gives people (adults and children) pleasure, self-esteem & a sense of achievement, better mental health (hence better behaviour), confidence (from performing in front of audiences), and cooperation/teamwork (from playing in a band or orchestra). Hence I really hope this trend continues, not just for selfish share-price-related reasons! I've printed off the full results, and will read them in the sunshine now, so will post any further bullet points below once I return. Some time later: this isn't working, I've got completely bogged down in the detail. The best thing to do is just read the note from N+1 Singer, which is available on Research Tree. It makes many excellent points. I think the bull case has got much stronger today, because of the broker forecast EPS doubling. Therefore I shall probably be increasing my position size here. Obvioously DYOR, this is only one person's opinion, and I may have missed something important. It's one of only a few shares where we can actually rely on the latest broker forecasts. Also note that the 100% rise in forecast EPS, combined with today's 22% rise in share price, means that the forward PER will actually come down substantially, from 30 to about 20. For that reason, I think this is a bullish development, and am happy to continue holding, and increase my position size. It's good to see the sceptics proven wrong!
hastings: Posted my write up elsewhere, but hopefully of some interest or use to others here too. As previously flagged by the company, G4M's preliminary results for full year 2020 released this morning sounded every bit a sweet a note as investors had anticipated and perhaps much more. Not only did it manage to drive revenues forward in an impressive manner, more noteworthy was the greatly improved performances in margins, cash generation and profit, all of which combined to have put the business in a sweet spot moving ahead. Speaking earlier with CEO and founder Andrew Wass along with CFO Chris Scott, there was clearly a very positive and pleasing view on the numbers delivered, but perhaps equally as important, the stance that there is more to do going forward. That mix of both confidence and a firm grounding should see the G4M business well placed as it accelerates and although the shares have this morning responded positively moving 23% to the good at £3.95p, investors eyeing continued growth could do worse than stick with this online player. Wass sounds a very positive note on both current and future prospects where he says “we were always confident of turning it around from the previous warning and ultimately the investment we made into high margin growth has delivered”. With a move away from volume and low margins which has clearly delivered the CEO also adds “It is very much about driving profit, its all about growing the profit and we are absolutely going to retain that growth”. Broker N+1 Singer has been quick to upgrade on the current 2021 forecast numbers which has seen it pencil in a 100% increase in pre-tax profits to £5.1m which would provide for EPS of 20.4p. Looking at the numbers for 2020 there is little doubt that the company has delivered and impressively, with revenue of £120m being registered, EBITDA of £6.4m achieved with the adjusted pre-tax profit coming out at £3.5m, blowing previous guidance out of the water. Importantly cash generation such a key measure registered a significant turning point and that resulted in a reduction of net debt to £5.6m which was a marked fall on the forecast £7.5m of the previous broker note. Wass says that issues around margins and cost efficiencies have clearly been addressed and although understandably the market has been challenging, G4M has done very well, been extremely busy and continued to benefit with a shift from the High St to online. Looking ahead Wass sees plenty of further growth opportunities across the market space and highlights the companies bespoke digital platform which was built from scratch and is now poised for further and potentially significant progress. “A couple of years back we began building across the digital product space which offers continued and improving customer experiences and we are now at a point of accelerating that with specific digital products that will also provide for a slick customer experience.” This will amongst others, see the likes of its mobile website development with enhanced payment options running alongside extensive customer communication and the personalisation of tools which will also be assisted further down the line by the introduction of transformational ways customers can purchase products from G4M music websites. Although G4M had already seen positive momentum prior to the various lockdowns, the enforced isolation has clearly had a positive effect on the business and that has continued into June as stated by the company this morning. Wass comments “When Italy went into lockdown we quickly saw a positive effect and we were soon very busy. That surge subsequently continued, it followed a pattern and we continue to be busy”. Whilst he says there was understandably less volume on live stands and PA systems due to the closing of event premises, other categories such as those serving podcasts and home related music have been doing incredibly well. With its pole position in the UK, G4M also enjoys exposure across Europe with hubs to serve the various markets and there is plenty more to do and business to go for adds the CEO. Touching on that thorny issue of a potential no deal Brexit, Wass believes G4M is better placed than many and has planned for such an event should it arise where it looks as though with two well established hubs in key countries such a scenario is largely de-risked. Broker N+1 Singer has now pencilled in some mouth watering forecasts for the year in progress and also included 2022 numbers for the first time. That sees it looking for revenues this year of £143.9m representing a 20% jump, rising to £151.2m next year, whilst pre-tax profits are expected to come in at £5.1m this year, moving to £5.4m next year. Another positive take away is the anticipated reduction in net debt which is forecast to reduce to £4.1m this year to £2.1m next year as cash generation becomes an increasing and recurring feature. The balance sheet is in any case sound enough which includes a substantial freehold property. With some 29% of total sales now being derived from its own brands which sees increased margins for the company, G4M appears well placed to build further on this segment and there is ample opportunity to drive that forward. And, given that its profit performance for last year was significantly stronger than expected following the implementation of both strategic commercial and operational initiatives the on-line migration could drive further upside in terms of numbers in the market as we move forward. Despite various lockdowns easing, the strong momentum clearly appears to be continuing and in a fragmented market place with many smaller independent operators G4M having won new business no doubt at their expense is quite likely to retain customers as with other aspects of on-line business models. N+Singer comments “On these prudent estimates, G4M trades on only 8x EV/EBITDA to Mar’21 reducing to 7x Mar’22, a 65% discount to its peers, whose EBITDA margins it now exceeds. The investment thesis has clearly improved since April, given 1) stronger and quicker profit margin uplifts, 2) positive cash generation, 3) confirmation of strong trading so far in FY21, and 4) positive forecast momentum. At the peer group average, intrinsic value would be roughly 900p.
Gear4music (holdings) share price data is direct from the London Stock Exchange
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