Growth of 5% over peak includes the adverse effect of Royal Mail strikes in the UK in Dec, offset by expansion in Europe. A temporary margin fall, in part due to targeted stock reduction which supports ND reduction, has been offset by labour efficiencies and lower marketing costs. It remains on track to meet FY EBITDA and lower ND, concerns about which have weighed on the rating despite significant balance sheet flexibility. Growing confidence here is helpful.

19 Jan 2023
On track after Q3, including targeted ND reduction

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On track after Q3, including targeted ND reduction
Gear4music (Holdings) PLC (G4M:LON) | 86.0 0 0.0% | Mkt Cap: 18.0m
- Published:
19 Jan 2023 -
Author:
Matthew McEachran -
Pages:
3 -
Growth of 5% over peak includes the adverse effect of Royal Mail strikes in the UK in Dec, offset by expansion in Europe. A temporary margin fall, in part due to targeted stock reduction which supports ND reduction, has been offset by labour efficiencies and lower marketing costs. It remains on track to meet FY EBITDA and lower ND, concerns about which have weighed on the rating despite significant balance sheet flexibility. Growing confidence here is helpful.