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Good luck to anyone chasing this one up.
My only share that's risen today😂
Continuation of the fall to yesterday's Rns.
Does anyone know what has caused this today there's no RNS to affect it
Out.
Richard Harpin in, with 9.11%
There was single trade of 1,911,289 shares (for a cool £3m), that would be over Amati's holding according to the major shareholder page. Only leaves Liontrust or founder with enough shares for a trade that big so must be former. More interesting perhaps will be who bought.
Wow, that's certainly an interesting trade. Could also be Liontrust who were holding 3.6m and have been forced sellers everywhere... we'll find out for certain when the TR1 lands. Crazy this traded at 90p for months on end, it shows how diabolical the UK market has been.
Are results due soon?
Question is why? Someone on the ADVFN board states "Amati just sold their 9% stake above the market price". Can't see anything, can anyone shed any light on this/provide a link?
You'd have to take into account the debt owed linked to the purchase of product prior to Brexit and still burning off.
The -ve and +ve of this share is the available # to purchase.
There are scarce numbers available free - It can move up or down very rapidly on limited news.
Personally I have been holding for quite some time.
I am a drummer and I liked the ethos of the company and when I did the maths looking at free float / margins etc - its a share that aligns with my ideals and offers limited risk and massive potential increases due to the lack of shares available.
That equity to market cap ratio isn't as unusual as you think, Tandem and Asos at a similar ratio, UK retailers are just unloved. Do agree it's cheap but book value here somewhat flattered by intangibles, NAV more useful as strips out the more subjective eg acquisition assets that management may be valuing too generously.
Lol, can't say I've ever had 3 accounts parrot any post of mine, bit weird. I also found the posting history of 'killerjoe' very odd. Joined LSE in Jan 2023 and has only ever posted on G4M, always in a negative manner. Clearly has an agenda.
I spent a decent bit of time on Friday going over the last few years of financial statements. Things worth noting;
- They own freehold property of ~£7.8m, including a £5m head office and some distribution centres. These are genuine assets and mean that in my mind the real net debt figure is sub £7m.
- Cash generated from operations totals £47m over the last 5 years, including £7.2m last year. Completely out of sync with the current £25m market cap. Likely to generate ~£10m this year.
- The most stunning figure is the balance sheet equity of £37m, I've never seen a going concern trading at 50% of it's book value. Pre Covid in March 2020 it's BV was £21m, at the bottom of the Covid crash shares hit £1.40, valuing the business at £28m or 1.3x BV. An equivalent valuation today would have a market cap of £49m / £2.35 a share. So at £1.30 it's still obscenely cheap IMO.
It's worth noting that Marks Electrical, an online retailer of household appliances, with turnover of £113m, gross margins of ~20% and adjusted EBITDA for 2023 of £7.5m, is trading at a £103m market cap. Their balance sheet equity totals £13m... I know which one I'd rather own if I wanted to make a good return over the next 12 months as consumer confidence returns.
So, JoeBrumfield, RobertGregg21 and ChadEspino are all the same person?? How many more aliases do you have and what's the point?
Long term holder here and happy that the SP has held up pretty well following the jump on Friday.
How can a market leader like G4M, with £160m in revenues and £10m in adjusted EBITDA, be trading at a market cap of only £20m? Despite having £14.5m net debt at 31/03, the recent RNS suggests that the business is in good condition. It is truly astonishing and even bizarre how the company has become so undervalued, considering its IPO in 2015 at a market cap of £28m with a turnover of £24m and adjusted EBITDA of £1.1m.
How can a market leader like G4M, with £160m in revenues and £10m in adjusted EBITDA, be trading at a market cap of only £20m? Despite having £14.5m net debt at 31/03, the recent RNS suggests that the business is in good condition. It is truly astonishing and even bizarre how the company has become so undervalued, considering its IPO in 2015 at a market cap of £28m with a turnover of £24m and adjusted EBITDA of £1.1m.
Today, G4M introduced their own line of mid-range instruments, which has been met with a positive response from the market. By offering their own gear, G4M can potentially improve profit margins and foster brand loyalty, especially if the quality of the instruments is commendable.
How can a market leader like G4M, with £160m in revenues and £10m in adjusted EBITDA, be trading at a market cap of only £20m? Despite having £14.5m net debt at 31/03, the recent RNS suggests that the business is in good condition. It is truly astonishing and even bizarre how the company has become so undervalued, considering its IPO in 2015 at a market cap of £28m with a turnover of £24m and adjusted EBITDA of £1.1m.
EBITDA falls short of expectations at £1.2m to £1.6m, indicating a potential loss despite a net profit expectation of £1m. Sales have increased by 3% year on year, but this is overshadowed by a significant inflation rate of at least 6% in their markets, resulting in a decline in sales volume. The company's growth prospects rely on AV.com, but they face tough competition from established players who are successfully trading online through various platforms. G4M lacks the financial resources for a price war, suggesting slow growth at av.com. Although net debt is manageable, shareholders may face lean times ahead.
What a bizarre post. You realise that those profit forecasts include depreciation costs of £6m+? I'll post a full response in due course, however the biggest error you make is assuming that AIM is efficient and that the current £20m market cap is pricing G4M anywhere near accurately...
A £20m market cap with depreciation adjusted profit before tax of £7-10m and a bit of debt which could be paid off by normalising inventory (£34m at year end) back to pre covid levels (£22m).
The market has been pricing this to go bust, it very much looks like it's doing well, so it should move up strongly as the threat of debt covenants etc is removed from the share price.
Today we have the positive news that trading is in line with forecast. Not that the forecasts are terribly good, showing for FY24 and FY25 combined turnover of £335m generating a small net profit of £4.1m. This turnover growth is not much more than inflationary and, once av.com and the second hand stuff are taken into account, probably shows no growth for the core online MI retail market. The days of high growth rates are over. (There is plenty to go at – market leader Thomann is likely turning over in excess of €1 billion – but G4M has no real competitive advantage to make inroads. Online MI retail seems to have reached maturity.)
That being the case G4M needs to make money out of the business its already doing. It seems to be making progress but isn’t talking about being ahead of the very modest profit levels in the forecast.
The statement says that they have been “driving significant cost efficiencies in out software development unit”. Their comparatively high spend on this has always been promoted as a competitive advantage for G4M. Reducing it suggests that the real beneficial work on software development has been done and its benefits are already largely in the figures and forecasts.
While today’s statement is positive it is still difficult to see where a real increase in profits or opportunities are coming from to increase the market valuation in the short term. Share price will probably drift around current levels.
I think their move into the second hand market for instruments and audio will prove to be a massive winner and could outstrip their new equipment sales if they get it right. They could also offer it under an alternative brand if they wanted and take on Cash Converters etc directly. Number of transactions should grow nicely in the current climate.
How is a market leader like G4M with £160m in revenues & £10m in adjusted EBITDA trading at £20m market cap?! Yes they had £14.5m net debt at 31/03, however based on today's RNS the business sounds in good shape.
They IPO'd in 2015 at a market cap of £28m with turnover of £24m and adjusted EBITDA of £1.1m
It's simply incredible that it's got so cheap - bizarre even.
At today’s price I am a buyer (as I was at 100p too). G4M are a serious technology enabled online retailer. They’ve got a large in-house development team, 50+ people compared to some other listed retailers who have a handful or less. They also have a growing stable of in-house organic and acquired brands which give them 42% gross margin.
OK, they need to improve on 5% EBITDA off £150m sales, but at a sub £20m valuation, this is well in the buying zone for me. They have absolutely masses of customer data: 1.65m email subscribers and info on over 4m individual customers in the last 6 years is hugely valuable. They should be excellently positioned to benefit from the whole AI toolkit to generate sales over the coming years.
I raised my eyebrows at the cost of av.com but that aside their combined strategy of bringing in well known brands, developing a secondhand offering and then extending that sales, procurement, logistics and online marketing expertise into new markets outside of instruments into AV and then hopefully other markets with similar attributes such as sporting goods, camping gear or pretty much whatever you like is a long term winner for me.
I think they wanted ‘av.com’ as they wanted it to be a multi-language pan European website, so a simple name language dependent. To date only the UK and German website are up and running so too early to say how much its worth (although with Go Daddy currently advertising ‘av.tech’ and ‘av.store’ at £5141 pa, £3m does seem pricey). They also paid £2.516m goodwill for the av.com business.
Revenue by product category is given on page 2 of the FY23 accounts. AV.com will be in the ‘Other’ category of 4% of turnover (FY22 3%). The FY22 accounts split this 'other' category into ‘Home Audio & Visual’ 2% and ‘other’ 1%. From this a very rough calculation can be done. My guess is that av.com was in the region of £4.5m FY23, £3m FY22. For av.com FY22 was only included for the last 4 months so sales would appear to have fallen. In the last full year under its previous ownership sales were in excess of £8m, so I don’t expect G4M to be highlighting it in their reports.
With the av.com website offering nothing that their established online competitors don’t also offer I would expect progress at av.com to be slow.
If they do I think you'll find that it wasn't.
Just compare their range and prices with the competition (e.g. Richer Sounds)