Gear4music might be about to turn a corner.
Anybody out there with a young child learning the drums will be painfully aware of this online musical instrument retailer.
The group was founded in 1995 by current CEO, Andrew Wass, who retains a chunky c34% shareholding in the £40m company. Back then, Wass was a sound recording engineer who spotted an opportunity to supply small recording studios and educational establishments with digital recording solutions.
In 2003 Wass began to look into retailing own-brand beginner level musical instruments. He wanted to make them more accessible by selling at lower prices than in traditional music shops. Wass placed a bulk order for guitars, listed them for sale, and notched up an encouraging £0.65m of revenue in year one. He was onto something.
From this point on, sales grew strongly every year.
In March 2012, private equity group Key Capital Partners invested £3.4m to enable further development of G4M’s ecommerce platform and expansion into Europe. Some 18 country-specific websites were created for customers in Ireland, France, Spain, Portugal, Germany, Netherlands, Belgium, Denmark, Norway, Sweden, Finland, Italy, Switzerland, Austria, Poland, Czech Republic, Slovenia and Slovakia.
Source: Admission Document
This rapid top line growth continued…
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