Gear4music (Holdings) (G4M)

Sector:

Leisure Products

Index:

FTSE AIM All-Share

 176.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 185.00
  • 52 Week Low: 87.50
  • Currency: UK Pounds
  • Shares Issued: 20.98m
  • Volume: 5,000
  • Market Cap: £36.92m

Gear4music trades in line, gross margins and profitability improves

By Iain Gilbert

Date: Wednesday 24 Apr 2024

LONDON (ShareCast) - (Sharecast News) - Music instruments retailer Gear4music said on Wednesday that its full-year performance was in line with market expectations, having delivered both gross margin and profitability improvements.
Gear4music said annual revenues would come in slightly ahead of current expectations of £144.1m at £144.4m, while FY adjusted underlying earnings and pre-tax profits would also beat expectations of £9.8m and £1.3m, respectively, reflecting the group's prioritisation of gross margins, profitability, and net debt reduction ahead of sales growth.

UK sales were up 1% at £83.1m, while Europe and RoW sales dropped 12% to £61.3m.

Gross margins were expected to be 27.3%, up from 25.7% a year earlier, while net debt was reduced significantly to £7.3m from £14.5m at the same time twelve months prior, ahead of market expectations for a pre-IFRRS16 net debt position of £11.6mm.

The AIM-listed group added that planned cost reductions delivered during the second half of 2024 would also support further net debt reduction and profitability improvements.

Chief executive Andrew Wass said: "As a direct result of the affirmative actions taken to prioritise cash generation and reduce costs, we have almost halved the group's net debt since 31 March 2023, down to £7.3m at 31 March 2024, being a reduction of £16.9m in two years.

"We continued to invest into and develop our bespoke e-commerce platform during FY24, improving key areas of our proposition to drive further efficiencies and future profitable growth. The board is confident that the positive impact of the cost reductions made during FY24 will deliver full-year benefits in FY25."

Separately, Gear4music revealed that chairman Ken Ford will step down from the board later in 2024, with Wass to take over his job and current chief operating officer Gareth Bevan to fill the vacant CEO role.

As of 1040 BST, Gear4music shares rallied 6.24% to 145.56p.









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 185.00
52 Week Low 87.50
Volume 5,000
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
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

G4M Dividends

No dividends found

Trades for 18-Jul-2024

Time Volume / Share Price
13:19 5,000 @ 178.00p

G4M Key Personnel

CFO Christopher (Chris) David Scott
CEO Gareth John Bevan

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