Updates

Gear4music

January 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Gear4Music has completed the acquisition of AV Online and an associated domain name, AV.com, for £9.2m. Founded in 2013, AV Online is a retailer of audio-visual equipment, such as home cinema systems, a market that is adjacent to G4M’s core market. AV Online had sales of £8.6m in 2020 and the deal equates to an exit multiple of 7.1x operating profit. Chief executive Andrew Wass believes that AV Online will greatly benefit from being transferred onto the existing European e-commerce platform. Separately the company has reported H1 results with sales down 8% to £64.7m and gross margin shading by 60bps to 28%. This delivered EBITDA of £4.8m in H1, equivalent to a 6.2% EBITDA margin. UK trading was generally OK but Europe was slo ...

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Hargreaves Services

SDI Group

Gear4Music (May 2022)

Gear4Music (February 2021)

Gear4Music - Earnings forecast upgraded by 138% (August 2020)

Gear4Music (May 2020)

Gear4music (February 2020)

Gear4music - European rival falls into administration (January 2020)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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