Shares soar at music retailer after buying assets of GAK from administrators
Musical instruments retailer, Gear4music has acquired the assets of Guitar, Amp & Keyboard Centre (GAK) which had fallen into administration.
The deal sent the York-based company’s shares soaring by 19 per cent to 139.9p in early trading. However, the price is still down from 200p six months ago, and at a fraction of the 1010p high during the pandemic.
Gear4music said it has purchased stock with a cost value of £1.8m, together with certain intangible assets including websites, trademarks, and commercial data, £0.6m.
It added that it is not acquiring any part of GAK’s trading business, nor any other assets or liabilities, and has no current plans to use the GAK trading name.
The company also reported a marked improvement in UK and European like-for-like sales in the latter half of March has been sustained over the first two weeks of April, with a return to double-digit sales growth over the last 30 days, providing the “board with further confidence in the outlook for the year ending 31 March 2026.
Earlier this month, Gear4Music revealed that profits for the full year will be below market expectations.
Gear4music added that current consensus market expectations for the year ending 31 March 2026 are revenues of £153.8mi, EBITDA of £10.9m and profit before tax of £2.65m.
