Gear4music (Holdings) (G4M)

Sector:

Leisure Products

Index:

FTSE AIM All-Share

 176.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 185.00p
  • 52 Week Low: 87.50p
  • Currency: UK Pounds
  • Shares Issued: 20.98m
  • Volume: 0
  • Market Cap: £36.92m

Gear4music FY earnings slip against Covid-fuelled outperformance

By Iain Gilbert

Date: Tuesday 21 Jun 2022

LONDON (ShareCast) - (Sharecast News) - Musical equipment retailer Gear4music said on Tuesday that revenues and profits had slipped in the twelve months ended 31 March as Covid-fuelled comparatives proved too tough to match.
Gear4music reported a 6% year-on-year drop in revenues to £147.6m, an 11% fall in gross profits to £41.1m, and a 150 basis point contraction in gross margins to 27.9%. Underlying earnings were down 43% at £11.2m and pre-tax profits were 66% weaker at £5.0m.

However, Gear4music also managed to deliver a 23% rise in revenues, a 32% increase in gross profits, and a 200 basis point improvement in its gross margin when compared to the 2020 trading year's pre-Covid performance.

Net debt at year-end was £24.2m, a marked difference when compared to the £2.7m net cash balance reported at the same time a year earlier, with G4M partially using its new £35.0m revolving credit facility for M&A and an increase in stock as part of an effort to protect itself from supply chain issues and price inflation.

Chief executive Andrew Wass said: "During FY21, Gear4music was reportedly the world's fastest-growing large online retailer of musical instruments and music equipment, being uniquely positioned to serve customers during Covid lockdowns. As previously reported, this meant our FY21 financial results were exceptional, and comparing FY22 against FY20 pre-pandemic levels provides a better indication of the progress the business has made.

"I am pleased to be reporting FY22 full-year results today that are slightly ahead of our previous expectations, with EBITDA of £11.2m and pre-tax profit of £5.0m. These results are a significant improvement on FY20 pre-pandemic levels, showing the continued growth and development of our business, and are a testament to the hard work and determination of our talented teams."

As of 1010 BST, Gear4music shares were up 4.29% at 182.50p.



Reporting by Iain Gilbert at Sharecast.com

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G4M Market Data

Currency UK Pounds
Share Price 176.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 185.00p
52 Week Low 87.50p
Volume 0
Shares Issued 20.98m
Market Cap £36.92m

G4M Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
16.11% below the market average16.11% below the market average16.11% below the market average16.11% below the market average16.11% below the market average
75% below the sector average75% below the sector average75% below the sector average75% below the sector average75% below the sector average
Price Trend
63.50% above the market average63.50% above the market average63.50% above the market average63.50% above the market average63.50% above the market average
45.45% above the sector average45.45% above the sector average45.45% above the sector average45.45% above the sector average45.45% above the sector average
Income Not Available
Growth
79.6% below the market average79.6% below the market average79.6% below the market average79.6% below the market average79.6% below the market average
77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average

What The Brokers Say

Strong Buy 0
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 1
buy
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G4M Dividends

No dividends found

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G4M Key Personnel

CFO Christopher (Chris) David Scott
CEO Gareth John Bevan

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