Updates

Gear4music - Deja vu - key European rivals go into administration

May 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.

Gear4music’s FY25 trading update shows a subdued Q4, due to aggressive price discounting by underperforming competitors. As a result, it has guided to FY25 sales of £146.7m (+2%), although better gross margins and cost control will lead to EBITDA of £10m (up from £9.4m) and a £1m increase in pretax profit to £1.6m. Net bank debt was further reduced to £6.4m as of 31 March. But since March things have picked up with double digit LFL sales growth in Q1. In particular, two significant price discounters have gone bust - Guitar, Amp & Keyboard Centre (GAK) in the UK and BAX in the Netherlands with sales of £20m and £150m, respectively - providing it with an opportunity to take market share and raise margins. G4M has opportunistica ...

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GB Group - Slashes net debt

Volex

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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