Updates

Gear4music - Buys rivals stock for 50p in the £1

July 2025

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.

Following its acquisition of bankruptcy stock from rival GAK in April, Gear4music has bought another chunk of stock, this time from the administrators of S&T, which traded as PMT Play Music and was the UK’s fourth-largest instrument retailer with £43m sales. The inventory, with a book value of up to £2.4m, has been acquired for £1.2m. G4M usually makes a 31% gross margin on the products it sells (46% on own-brand items and 26% on third-party products) and so this cheap third-party inventory will allow it to achieve windfall margins by reselling this acquired stock at full price. The trading picture seems to have brightened greatly with sales for the year that started 1 April seeing double-digit like-for-like growth. Si ...

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VP Group

Animalcare

Gear4music - Deja vu - key European rivals go into administration (May 2025)

Gear4music (February 2025)

Gear4music (December 2024)

Gear4music - Net debt falls £3.6m in 6 months (November 2024)

Gear4music - Time for a second bite at the cherry (August 2024)

Gear4Music (May 2022)

Gear4music (January 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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