(Alliance News) - Focusrite PLC on Monday cited continued challenging market expectations but said business in its Audio Reproduction division remains robust.
The High Wycombe-based music and audio products firm said it expects revenue to be at least GBP155 million in the financial year ending August 31, down from GBP178.5 million in financial 2023.
It said that the challenging market conditions it highlighted in January continued throughout February and into March.
Focusrite shares were down 29% to 274.50 pence each on Monday morning in London.
"[First half] performance has been impacted by similar factors across the group's geographic regions. The content creation market globally continues to struggle due to a number of macroeconomic issues. Content creation revenue in Asia has shown particular continued weakness with now 18 months of continuous decline, the largest negative impacts being in China and Japan, and no improvement is now assumed for the remainder of the year," Focusrite said.
It added: "Sequential has seen sales decrease globally, particularly at the higher price points, impacted by cost-of-living issues coupled with necessary sales price increases resulting from component price rises. This is consistent with industry data for the high-end synth market. The ADAM brand has shown encouraging growth, reflecting increased market awareness, and the benefit and scale from group-led activities, whilst Novation is trading in line with the market."
Sequential is a Focusrite-owned synthesizer company that sells instruments.
However, its Audio Reproduction unit doing well with a "strong overall performance" in the six months to February 29.
Focusrite said it is well-positioned for future growth when market conditions in the content creation market improve.
By Tom Budszus, Alliance News slot editor
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Focusrite (TUNE)