Weaker-than-expected Q4 trading, notably in February and March against soft comparatives, has resulted in G4M guiding to an FY23E EBITDA outturn of between £7.3m and £7.7m, below market expectations. Gross margin of 25.7% (vs 27.8% in FY22) reflected inventory reduction in a tough trading environment. However, year-end net debt of £14.5m is £3m better than expectations of £17.5m, and comfortably within G4M’s borrowing facility.
06 Apr 2023
PROGRESSIVE: Gear4Music - Forecasts cut on weaker trading, but net debt reduction beats market expectations
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
PROGRESSIVE: Gear4Music - Forecasts cut on weaker trading, but net debt reduction beats market expectations
Gear4music (Holdings) PLC (G4M:LON) | 137 0 0.0% | Mkt Cap: 28.7m
- Published:
06 Apr 2023 -
Author:
David Jeary -
Pages:
5
Weaker-than-expected Q4 trading, notably in February and March against soft comparatives, has resulted in G4M guiding to an FY23E EBITDA outturn of between £7.3m and £7.7m, below market expectations. Gross margin of 25.7% (vs 27.8% in FY22) reflected inventory reduction in a tough trading environment. However, year-end net debt of £14.5m is £3m better than expectations of £17.5m, and comfortably within G4M’s borrowing facility.