Gear4music Holdings PLC (AIM:G4M) shares jumped 19% in early trading after the online music retailer announced the acquisition of key assets from collapsed rival GAK, alongside a return to double-digit sales growth in recent weeks.
The company has purchased £1.8 million worth of stock plus websites, trademarks and commercial data from the administrators of GAK.co.uk and The Guitar, Amp & Keyboard Centre for a total of just £600,000.
Gear4music emphasised it is not acquiring GAK’s trading business, liabilities or brand name.
The group also reported a strong start to its new financial year, with like-for-like sales growth in both the UK and Europe accelerating through late March and early April.
Management reaffirmed confidence in full-year forecasts, with consensus expectations set at £153.8 million in revenue, £10.9 million in EBITDA and £2.65 million in pre-tax profit.
In early trading, the stock was changing hands for 139.9p, up 22.4p.