Gear4music - Update confirms over-delivered on plans for FY
Gear4music’s sales increased by 9% to £120.3m in the year to 31st March 2020, according to today’s pre-close trading update. The company stated in an earlier (2nd April 2020) RNS that FY2020 profits would be ahead of market expectations and this announcement goes on to indicate by how far. With an online distribution focus and positive financial newsflow, the company’s business model remains attractive. Moreover, it appears resistant to the current UK lockdown, as indicated in a relatively sanguine release about coronavirus on 18th March.Sales resilience and positive announcements for profitability were helpful for Gear4music’s share price in recent weeks. Despite the recent positive share price momentum, the company’s £52m market cap represents less than 50% of trailing sales revenue.
Investors may wish to note this when considering companies that are well placed to thrive both during and after the COVID-19 lockdown period.
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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