Last checked at 14 Sep 2021 07:00
Strictly embargoed until 07.00, 14 September 2021
Focusrite plc
("the Company" or "the Group")
Trading Update for the year ending 31 August 2021
Focusrite plc (AIM: TUNE), the global music and audio products company supplying hardware and software used by professional and amateur musicians and the entertainment industry, is pleased to update the market on a positive trading year in which revenue, profits and cash flow have all grown substantially.
As a result of this strong trading performance during the year, the Group now expects revenue for the financial year ending 31 August 2021 to be ahead of market expectations at approximately £173 million, up from £130 million last year. This growth is largely due to continued strong customer demand across our products and also includes four months' contribution from Sequential LLC ("Sequential"), the world-renowned, high-end synthesizer company acquired in April 2021. EBITDA is also expected to be ahead of current market expectations, as gross margins have been maintained at similar levels to the prior year and the Group experienced a substantial decrease in travel and trade shows due to the restrictions and changes in working practices caused by COVID-19. The Board does not expect these cost savings to be recurring.
Cash generation remains a priority for management and as at 31 August 2021, the Company had a net cash balance of approximately £17 million, having repaid the debt taken on to fund the Sequential acquisition. For comparison, the net cash balance as at 28 February 2021 was £19 million, prior to the outflow relating to the acquisition of Sequential of US$20 million (c£15 million).
Despite the strong demand for most of the Group's products, the Group is continuing to experience supply constraints due to the global shortage of semi-conductors and other components, and freight and shipping costs are significantly higher than normal, principally caused by the effects of COVID-19.
Tim Carroll, Chief Executive commented:
"The Group continues to see increased demand for solutions that enable the creation and playback of audio content for music, postproduction, podcasting, and streaming. We now have eight established brands covering a much broader customer and geographic footprint than in previous years; and the acquisitions we have made are integrating well and delivering on their forecast plans.
"We remain optimistic about our future prospects as we continue to execute on our strategy of growing our core customer base and focusing on customer value, but in tandem we remain extremely vigilant of the challenges presented by the current disruption to the supply chain and the global shortage of semi-conductors and other components as well as any further impact from the pandemic."
The Company expects to announce final results for the year ended 31 August 2021 in late November 2021.
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
-ends-
Enquiries:
Focusrite plc: | |
Tim Carroll (CEO) | +44 1494 462246 |
Sally McKone (CFO) | +44 1494 462246 |
Panmure Gordon (Nominated Adviser and Broker) | |
Freddy Crossley (Corporate Finance) | +44 20 7886 2500 |
Erik Anderson (Corporate Broking) | +44 20 7886 2500 |
Belvedere Communications | |
John West | +44 20 3687 2753 |
Llew Angus | +44 20 3687 2754 |
Notes to Editors
Focusrite plc is a global audio products group that develops and markets proprietary hardware and software products. Used by audio professionals and musicians, its solutions facilitate the high-quality production of recorded and live sound. The Focusrite Group trades under eight established brands: Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal Audio and Sequential.
With a high-quality reputation and a rich heritage spanning decades, its brands are category leaders in the music-making and audio recording industries. Focusrite and Focusrite Pro offer audio interfaces and other products for recording musicians, producers and professional audio facilities. Novation and Ampify products are used in the creation of electronic music, from synthesisers and grooveboxes to industry-shaping controllers and inspirational music-making apps. ADAM Audio studio monitors have earned a worldwide reputation based on technological innovation in the field of studio loudspeaker technology. Martin Audio designs and manufactures performance-ready systems across the spectrum of sound reinforcement applications. Sequential designs and manufactures high end analogue synthesizers.
The Focusrite Group has offices in four continents and a global customer base with a distribution network covering approximately 160 territories.
Focusrite plc is traded on the AIM market, London Stock Exchange.