Full Year Results 

Gear4Music tuned up for growth

Gear4Music tuned up for growth

Gear4Music (G4M) touted the year to February 2018 as one of investment in the business and it shows. The musical equipment retailer increased headcount by 49 per cent and poured money into the e-commerce platform and marketing. This led to a marked step-up in revenues, but profits were constricted due to an accompanying 47 per cent increase in admin costs, combined with a 160 basis point contraction in the gross margin – largely the result of currency-linked cost-push inflation. However, analysts are forecasting a return to profit growth in 2019 as the recent investment begins to deliver. Peel Hunt is expecting adjusted pre-tax profit of £2.8m, giving EPS of 11.2p (up from £1.5m and 6.7p in 2018).

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