Gear4music (Holdings) plc


Gear4music (Holdings) plc

Investment Case

Investment case

Gear4music is well positioned to capitalise on the opportunities available within its markets, due to our unique competitive advantages and barriers to entry.

Gear4music is well positioned to capitalise on the opportunities available within its markets, due to barriers to entry and our unique competitive advantages:

  • We are an agile, predominantly online retailer, and have a well-recognised brand
  • We are the UK’s largest retailer of musical instruments and music equipment
  • Our bespoke e-commerce platform provides a high degree of operational flexibility and scalability which the Directors believe cannot easily be replicated
  • A strong own-brand offering has been developed over 20 years, and has established a reputation for ‘good’ and ‘better’ quality products at affordable prices, whilst providing enhanced margin opportunities.
  • We have developed long-term relationships with the major branded musical instrument and music equipment manufacturers, placing us in a strong position during a period of retailer consolidation
  • We have proven and scalable distribution capabilities
  • The Directors and senior management have an intimate knowledge of the musical instrument and music equipment market

Track record of success – long term revenue and market share growth

  • UK revenues trebled since FY16, from £26.0m to £82.1m in FY23
  • European growth validates strategy and improving proposition
  • Email database of 1.65m registered users, with 0.86m active customers

Bespoke and proprietary e-commerce platform delivers competitive advantage

  • End-to-end solution encompassing all aspects of trading operations
  • 84 in-house software developers providing cost-effective development
  • Currently supports 21 websites, 15 languages and 9 currencies
  • Ability to rapidly respond to changing customer behaviours and expectations
  • Capability to expand into new territories and markets
  • Capacity to handle significantly increased volumes and website traffic
  • Additional functionality in continuous development

Specialist knowledge facilitates strong relationships with customers and suppliers

  • Strong, committed and experienced management team
  • Employees with in-depth specialist knowledge
  • Expertise means Gear4music is trusted by major musical instrument and music equipment brands
  • Offers a wide range of choice to customers and provides specialist advice during and after the sales process

Well-developed product ranges

  • Over 64,200 products from over 1,130 brands
  • Reputation for quality and value for money
  • Over 4,900 own-brand SKUs, developed over a 20-year period
  • Enhanced margin opportunities as volumes increase

Efficient logistics systems

  • Operates from six modern facilities with a combined 370,000 square feet footprint
  • The most appropriate courier delivery services are automatically selected from more than 38,800 permutations depending on the weight, size, value and destination of the goods being purchased