GEAR4MUSIC (G4M) – Retail
| Price: 324p +0.3% | P/E: 14.2x |
| Market Cap: £68m | Yield: n/a |
AIM-listed online music retailer Gear4Music once again hit the right note with its 1H results which showed revenue up 28% to a shade under £50 million and an operating profit of £3.4 million vs a loss of £0.5 million a year ago.
The firm saw ‘very strong’ sales growth across its markets and brands, accelerating from 27% in Q1 to 34% in Q2, while earnings include £1.1 million of gross profit on previously sold stock acquired from the insolvency of two UK rivals.
Robust trading has continued in Q3, and the company now sees EBITDA for the year to March 2026 above the recently upgraded consensus so has raised its guidance to ‘not less than £15 million’.
Our View
Gear4Music hasn’t looked back since the arrival of Andrew Wass (chairman) and Gareth Bevan (CEO) in July last year.
Wass says he is ‘delighted’ with the firm’s operational and financial performance, particularly in what is typically a quieter time of year for instrument sales.
If there is one thing which might be holding the stock back today it’s the admission the York distribution centre will likely be operating at close to maximum capacity during December, right in the middle of the firm’s peak trading season, and it really needs to open a new centre in the next 12 months, so investors may be waiting to see how the Christmas period goes.
Read the press release here: https://www.gear4musicplc.com/investors/overview/
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