Gear4music Holdings (G4M)

Business description

Gear4music is the largest dedicated, UK-based online retailer of musical instruments and music equipment. It sells branded instruments and equipment, alongside its own brand products, to customers ranging from beginners to professionals, in the UK and into Europe and the rest of the world.

Investment summary

Gear4music (G4M) has fulfilled the strong expectations of its four-month Christmas trading period. Revenue growth of 42% is consistent with H1 and is in line with expectations, both in the UK and faster growing international markets. This means that the online model continues to take share, achieving growth far ahead of consumer fundamentals and building on its market-leading position. We retain our forecast and reiterate our valuation stance, which sees upside based on the rate of development of international markets.

Last updated on 05/01/2018

Y/E Feb Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 35.5 1.7 0.6 3.1 221.9 N/A
2017A 56.1 3.7 2.7 11.6 59.3 N/A
2018E 81.4 4.1 2.4 10.0 68.8 N/A
2019E 102.1 5.1 3.3 13.3 51.7 N/A

Last updated on 12/12/2017

Latest video

Bitesize Briefings - Gear4music

Industry outlook

The UK musical instrument and equipment market is worth c £750m at retail value, according to management estimates. The European market (including the UK) is estimated at £4.3bn, the US at $7.7bn, and the world market at US$17bn. In the UK, the market is highly fragmented and G4M is the biggest player. The musical instrument (only) market is forecast to grow by a compound 1.7% over the next five years, according to ibisworld.co.uk.

Last updated on 13/12/2017

Key management

Andrew Wass, CEO
Chris Scott, FD

Company address

Kettlestring Lane
Clifton Moor
York
YO30 4XF
United Kingdom
+44 (0)330 365 4444
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