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Figures back Gear4Music's online proposition

The results show that an online platform makes an ideal shopfront for musical instruments
October 24, 2017

Gear4Music (G4M) saw gross profit rise 36 per cent at the half-year mark, albeit with a reduced underlying margin, as sterling weakness fed through to cost of sales. However, the company remains in expansionary mode, which precipitated a £4.2m placing in May – and expand it has.

New distribution centres and improved software support have underpinned a 39 per cent increase in the number of customers served through the period, coupled with a 70 per cent rise in international sales. Mail subscriptions are up by a fifth and the numbers of punters accessing the e-tailer’s site via mobile handsets or tablets was up 11 percentage points to 53 per cent. And while it’s impossible to say definitively, a clear increase in the number of visitors to gear4music.com who go on to purchase a musical instrument suggests that the user experience has improved.

Panmure Gordon gives pre-tax profit of £2.5m for the February 2018 year-end, leading to EPS of 10.5p, against £2.6m and 11.4p in 2017.

GEAR4MUSIC (G4M)   
ORD PRICE:815pMARKET VALUE:£ 170m
TOUCH:810-820p12-MONTH HIGH:886pLOW: 359p
DIVIDEND YIELD:NILPE RATIO:104
NET ASSET VALUE:76pNET DEBT:23%
Half-year toTurnover   Pre-taxEarnings perDividend
31 Aug (£m) profit (£m)share (p) per share (p)
201621.61.03.70nil
201731.2-0.10.06nil
% change+44---
Ex-div:-   
Payment:-