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 market barriers to entry and our unique competitive advantages:

  • We are an agile, predominantly online retailer, having built a well-recognised brand;
  • We are the fastest growing retailer of musical instruments and music equipment in the worldwide top 30 (source: Music Trades);
  • “Gear4music” is the number one search term driving traffic in the category “Music Shops” (source: Hitwise);
  • Following the IPO last June, we are well capitalised and well positioned to exploit opportunities within the market as they arise;
  • Our bespoke ecommerce 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 12 years, and has established a reputation for good quality products at affordable prices, whilst providing enhanced margin opportunities;
  • We have developed long-term relationships with major branded musical instrument and music equipment manufacturers, placing us in a strong position during a period of retailer consolidation;
  • We have a proven and scalable distribution centre; and
  • The Directors and senior management have an intimate knowledge of the musical instrument and music equipment market.


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

  • Revenues have increased every year since launch in 2003
  • Momentum stepped up following additional investment in 2012, and again in 2015
  • 46% LFL sales growth in FY16, building on 37% LFL sales growth in FY15
  • Strong European growth validates website roll-out strategy
  • Database of 1m registered users, with active customers increasing by 34%

Bespoke and proprietary ecommerce platform delivers competitive advantage

  • End-to-end solution encompassing all aspects of trading operations
  • Intellectual Property owned by Gear4music
  • Currently supports 19 websites in 15 languages and 8 currencies
  • Ability to rapidly respond to changing customer behaviours and expectations
  • Capability to expand into new markets
  • Capacity to handle significantly increased volumes and website traffic
  • Additional functionality in 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 32,000 products from over 650 brands
  • Reputation for quality and value for money
  • Over 1,500 own-brand SKUs, developed over a 12 year period
  • Provide enhanced margin opportunities as volumes increase

Efficient logistics systems

  • Operates from a modern 135,000 square foot building on the outskirts of York
  • Capacity to dispatch in excess of 10,000 orders per day
  • The most appropriate courier delivery services are automatically selected from more than 1,100 permutations depending on the weight, size, value and destination of the goods being purchased