Music firm drums up interest for IPO
ONLINE music instrument retailer Gear4music is intending to float on the AIM section of the stock exchange.
Founded in York in 1995 by chief executive Andrew Wass, the group has reportedly been profitable since its launch as Gear4music in 2003.
Growth has accelerated during the last two years from £12.3m for the year ended 28 February 2013, to £24.2m for the year ending in February 2015.
Last year, the firm invested in a new 9,000 sq ft York showroom, costing £250,000, and also £1m was invested in logistical development after a move to new premises.
In March 2012, Key Capital Partners invested £3.4m in the group, allowing it to develop its ecommerce arm and the initial venture which opened up European markets, which has now expanded to 19 websites in 15 languages and eight currencies.
The firm is planning not only a float, but further Europe-wide expansion, rolling out their ecommerce capabilities across the Channel.
It has over 590,000 registered customers, with an own-brand range as well as selling third-part
Gear4music founder Mr Wass, who previously owned a recording studio business, said: “Over the last 12 years, we have established ourselves as one of the largest UK-based online retailers of the musical instruments and music equipment and are well placed to build on the positive momentum we have generated to date, particularly over the past two years, which have seen our revenues almost double and our European business expand significantly.
“We are very excited about this next stage in our development, with our forthcoming flotation on AIM enabling us to develop further out bespoke ecommerce platform, invest in additional marketing initiatives, extend the range of products we stock and opwn a flagship showroom in central London.”
Capital markets lawyers at Walker Morris are advising Gear4music on its admission, which is the third IPO the firm has dealt with in a month.
Richard Naish, corporate partner head up a team including Shubhu Patil and Victoria Smithers, providing the legal advice to Gear4music. Mr Naish said: “The IPO is a positive move for Gear4music and will provide a solid platform for future growth for this successful Yorkshire-based business. We’ve had the pleasure of working with the company for a number of years, having previously advised at the time of Key Capital Partners’ investment in 2012, making it particularly satisfying that we have been able to help with the transition from a private equity backed business to one that will be publicly quoted.”
Last week Walker Morris advised on Cleeve Capital’s acquisition of Satellite Solutions Worldwide and its admission to AIM and last month advised on Mobile Tornado Group’s share placing on AIM.
Panmure Gordon is acting as financial adviser, nominated adviser and broker to Gear4music.
