Strong Q3 sales and gross margin growth
G4M has continued its sales growth and gross margin expansion momentum with a strong performance over its key Q3 trading period. This saw group sales growth of 30%, complemented by gross margin expansion of 370bps. The combined impact translates into a £5.0m increase (+47%) in gross profit in the period. With positive trading reported in the first days post-Brexit, management now expects FY21E EBITDA to be not less than £16.5m. We have consequently raised our EBITDA forecast by £3.1m (23%) to £16.6m, with PBT increasing by 32% to £11.2m (from £8.5m previously).