The group’s AGM trading update included news of a complementary acquisition in line with the group’s stated growth strategy. It is to acquire the online retailer of audio-visual (AV) equipment, AV Distribution Ltd, which trades primarily as AV Online, together with a separate acquisition of the AV.com domain name, for a combined consideration of £9.2m. The acquisition will increase G4M’s addressable market, benefit from the scalability of G4M’s proprietary platform, and should be earnings accret
Companies: Gear4music (Holdings) PLC
The AGM update reveals a bounce back to positive YoY growth in the UK, but a slower growth trajectory in Europe, given post-Brexit challenges. These are being addressed and new DCs in Eire/Spain are on track to launch shortly. G4M is on track to meet FY estimates despite well documented supply chain challenges. Momentum is expected to rebuild from Q4 onwards and today’s acquisition in the audio-visual space further bolsters growth prospects beyond FY22.
Gear4music (G4M) has delivered a superlative set of results against the extraordinary backdrop of the past year. Profit measures are up at all levels, with the company swinging from a net debt to a net cash position at the year end. G4M has also announced plans to open two new European distribution centres and the strategic acquisition of two music brands to support its own brand offer. With a new £35m revolving credit facility (RCF) agreed, G4M is well placed to develop new complementary initia
Strategic and operational initiatives have been transformational over the last 2 years. Including some challenges during the pandemic, G4M’s performance has far exceeded original expectations. EBITDA margin of almost 12% is potentially an indicator of things to come in the future. Trading so far in Q1 has exceeded expectations. With confidence in margin/efficiency retention growing, and a number of new growth initiatives in the pipeline, we have upgraded Mar’22 forecasts by almost 50% and introd
Positive trading in Q4 leads to another 6% upgrade, with EBITDA margin over 11% for the year (pre-IFRS16). While early days, G4M is pleased with initial trading in Q1 FY22 too, against the toughest comparatives of the year (lock-down 1.0). The growth strategy now also has a number of new and incremental elements to it, including M&A, which look set to contribute positively within 12 months. Alongside growing confidence that the core margin and efficiency gains from 2020 can largely be retained,
…as strong Q4 sees a further EBITDA upgrade
Catena Group (CTNA.L) to complete reverse takeover and be renamed Insig AI and is acquiring the remaining shares of Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager's d
Companies: SWG LOGP G4M SDG MTL GTC KWS ARK ANCR EME
Gear4music has continued to perform strongly since its Q3 update. As a result it has increased Mar’21 EBITDA guidance by £1.7m, equating to a c11% EBITDA margin and a 15% EPS upgrade. Today’s news not only highlights the continuing improvements in gross margin, but also the effectiveness of its cross border logistics solutions post-Brexit. This has allowed it to gain market share and maintain a clear customer proposition in contrast to others in its sector. Given its growing competitive advantag
Further to the upgrade delivered on the back of its impressive Q3 peak trading period, G4M has continued to perform strongly in Q4, resulting in another upgrade. Management now anticipates that EBITDA for FY21E will be not less than £18.2m, compared with our previous forecast of £16.6m. We have subsequently raised our FY21E EBITDA forecast by £1.7m (+10%) to £18.3m. G4M will make a more detailed announcement on FY21E’s trading performance no later than 23 April.
tinyBuild— a leading video games publisher and developer with global operations. tinyBuild's strategic focus is in creating longlasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC. Due mid-March. AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to ta
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We were bullish about the ongoing effects of strategic/operational initiatives at G4M, seeing forecast upside risk. It has not disappointed. Q3 sales and margin outperformance drive a 30% upgrade, and a shift into net cash. Extensive planning and systems/delivery changes have helped it after Brexit too, with trading stronger than expected so far in Jan. Valuation looks undemanding given upgrade momentum and the discount to lower margin peers.
…..drive further forecast upgrade
Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5 million by way of private placement of new Common Shares (the "Fundraising") to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021. The Company's Common Shares will continue to be listed and trade on the TSX-V in Canada. Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by
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G4M has reported a substantial uplift in profitability, notably EBITDA margin >11% from <3%. While conditions in Q1 contributed through abnormally rich margin and marketing efficiency, results underline what G4M is capable of on higher volumes. We prudently upgrade by another 15% but note that it is well prepared for Brexit, has a continuing focus on higher margin products, is taking market share through digital innovation, and has ongoing software development at the core of its growth strategy.
Gear4music (G4M) has delivered an outstanding set of interim results figures, based on its position as a beneficiary from the Covid restrictions across Europe. The previously disclosed 42% sales increase included new customer numbers jumping 52% over last year to just over 400,000, who will bring benefits over the medium- and longer-term. Performance increases and profit margins were leveraged going down the profit & loss account, with PBT of £4.9m delivered against last year’s small loss of £0.
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HeiQ has reported its results for the six months to June 2021. The company has reported revenues of $25.8m for the period and an adjusted EBITDA of $4.8m. While this result is down YoY versus the pandemic boosted H1/20A period, the performance is improved sequentially versus H2/20A, with revenue up 27% and EBITDA up over 140%. Through the period, HeiQ has faced a number of external headwinds which have created short-term challenges, including regional lockdowns, higher logistic costs and increas
Companies: HeiQ PLC
Draftkings has made a £16.4bn ($22.4bn) bid to acquire Entain in a cash (630p) and stock offer, valuing the target at 2800p/share. While the bid is promising, MGM (BetMGM’s JV partner) can throw a spanner in the works (counter-bid or a veto).
Companies: Entain PLC
Over the last twelve months, Escape Hunt has dramatically increased scale and proven the economics of its business, allowing it to target positive cash generation. All of the company’s owner-operated sites traded profitably post period end.
Companies: Escape Hunt Plc
Alkemy Capital (ALK.L) has joined the Main Market Standard. The Company was formed to undertake an acquisition of a controlling interest in a company or business, targeting an acquisition in the mining and technology metals sectors. At the Placing Price and on Admission the Company will have a Market Capitalisation of £2,999,999.50.
No leavers today.
What’s cooking in the IPO kitchen?
Press reports that Law firm Mishcon de Reya has agreed a merger with life sciences specialist Ta
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Companies: Ten Entertainment Group Plc
SCS Group’s full year trading update for the 53 weeks to 31st July shows that the strong demand that has been a hallmark of post lockdown periods over the past 15 months has continued, with LFL orders through the Group’s weeks 47 to 53 up by 23.7% on pre-Covid levels. Lower costs underpin a 16% upgrade to FY21 CPTP expectations, whilst the strong order book drives a 17% upgrade to our FY22 CPTP forecast. We look for EPS of 32.2p and 30.8p for FY21 and FY22 respectively. Year end net cash of £87.
Companies: ScS Group plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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Companies: City Pub Group PLC
Companies: Loungers Plc
Kingfisher reported better-than-expected figures at its H1 FY21/22 results, with lfl sales and adjusted PBT coming in ahead of market expectations and management’s guidance. Lfl sales outlook for H2 has been raised, the share buy-back programme re-introduced and the interim dividend increased. However, the share price was down c.5% today, as investors worried about inflationary cost pressures and supply chain constraints which are expected to continue into 2022. We will update our estimates and
Companies: Kingfisher Plc
This is our first report on Etsy Inc., one of the leading global online marketplaces for handmade and vintage goods. The company has had a phenomenal growth trajectory over the past few months despite going through its fair share of volatility. Its growth story has been a function of both, a strong organic growth strategy coupled with a series of acquisitions. Etsy has expanded its e-commerce ecosystem as well as its product base through acquistions like Elo7, a Brazil-based handmade goods marke
Companies: ETSY (ETSY:NYSE)Etsy, Inc. (ETSY:NAS)
…countering longer-term tailwinds
Although we remain sellers of B&M it is hard not to be impressed with its ambition and the pace at which it moves. Two recent acquisitions, management change in Germany and pushing through a major warehouse investment in Bedford, as well as opening midhigh single digit percentage new space in the core B&M chain all attest to this.
Companies: B&M European Value Retail SA
The final results revealed adjusted PBT up 99% year-on-year, which was 10% better than forecast despite four upgrades during the financial year. This strong performance reflects the financial benefits that have accrued following the shift in the business model to online only, as well as management’s strategic decision to significantly increase marketing spend. A second special dividend for the 2020 financial year has also been announced, reflecting the strong cash flow characteristics of the bus
Companies: Best of the Best plc
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