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(Alliance News) - Focusrite PLC on Monday said revenue for financial 2020 was ahead of market expectations due to strong performance of its core Focusrite Audio Engineering business and other businesses acquired in 2019.
Shares in the music and audio products company were trading 11% higher at 819.00 pence each on Monday morning in London.
High Wycombe, Buckinghamshire-based Focusrite expects to report revenue for its financial year that ended August 31 at around GBP129 million, up 52% year-on-year from GBP84.7 million. It credited the growth to a full year of revenue from ADAM Audio, which was acquired in July 2019, and eight months of revenue from Martin Audio, which was bought in December.
Focusrite also highlighted 23% growth in revenue from its audio engineering business.
The company noted an improvement in gross margins, adding that as a result, financial 2020 earnings before interest, tax, depreciation and amortization also are expected to be ahead of market predictions.
"The group continues to see increased demand for solutions that enable the creation and playback of audio content for music, podcasting and streaming. Much of the Focusrite Audio Engineering and ADAM Audio portfolios cater to these workflows and consequently have experienced continued high demand over and above our growth levels prior to the initial lock-downs, said Chief Executive Tim Carroll.
Focusrite said that as a result of the positive performance, it has decided to repay all assistance received by Martin Audio under the UK Coronavirus Job Retention Scheme, totalling GBP164,000.
Looking ahead, Carroll added: "The demand for Martin Audio products, especially for live sound events such as tours, festivals and theatres, has been negatively impacted since March 2020 due to Covid-19 restrictions. However, we are now seeing some early signs of recovery for installed sound solutions in many regions for clubs, houses of worship and corporate audio/visual solutions."
Net cash as at August 31 was around GBP3 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
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