A summer to celebrate
Gear4music continued its recent run of positive news announcements today with an upbeat AGM trading statement. Growth, following an exceptional first quarter in FY2021 (April to June), remained brisk in July and August. Moreover, the company’s strong sales momentum is more than matched by improvements on costs and margins.There are clearly good reasons to remain optimistic about the company’s near and long term prospects.
The EV/sales ratio looks modest at 0.8x while its expanded EV/EBITDA of 10.5x still represents a discount to successful online retailers. In our view, the shares are likely to enjoy further rerating. We reiterate that Gear4music looks well placed as a company to thrive, both amid and post pandemic.
Gear4music (Holdings) is an e-commerce retailer of musical instruments and music equipment. The products are sourced from over 710 manufacturers, and range from kazoos to digital pianos, drum kits and guitars.
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