TIDMTUNE
RNS Number : 3488Z
Focusrite PLC
14 September 2022
Focusrite plc
("the Company" or "the Group")
Trading Update for the year ended 31 August 2022
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
give the following update on current trading for the year ended 31
August 2022 (FY22).
Underlying demand for the Group's portfolio of products has
remained strong with end user registrations for our content
creation and market leading audio interface solutions continuing at
rates experienced ahead of the pandemic. In addition, the Group
continues to see ongoing strength in the live and installed sound
markets. As a result, we expect revenues for the full year to be
in-line with the Board expectations at approximately GBP180
million, up from GBP173.9 million in the prior year.
As previously reported, there are a number of global, industry
wide factors continuing to drive up costs, including scarcity of
key semiconductors and other components, and high freight costs.
These have created downward pressure on gross margins, partially
offset by price increases which we expect to continue into the next
financial year (FY23). In addition, reflecting the increased scale
of the Group, including recent acquisitions, we have continued to
invest in our systems, people and direct sales channels in order to
drive growth. As a result of these factors, we now expect EBITDA
(1) for FY22 to be slightly below the Board's expectations.
Cash generation remains a priority. As at 31 August 2022 the
Company had a net cash balance of approximately nil (FY21: GBP17.6
million net cash). This reflects the acquisition of Linea Research
in May for GBP12.1m, as well as the planned rebuilding of inventory
from the extremely low levels at the end of the prior year,
including inventory of both finished goods and scarce
components.
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,
post-production, podcasting, and streaming compared to pre-pandemic
levels. We now have nine established brands covering a much broader
customer and geographic footprint than in previous years. In
addition, our acquisitions continue to integrate well. Overall, the
Group's revenue is now running at about twice the level it was in
the last financial year prior to the pandemic.
"Current customer registrations remain robust. We are optimistic
about our future prospects, but mindful of the current global
economic and political challenges and uncertainties, as well as the
ongoing cost pressures in the supply chain. Over this past
financial year, we have successfully built back our inventory
position to provide greater resilience against supply chain
volatility and ensure we are able to adequately meet demand as we
head into the key holiday season."
The Company expects to announce final results for the year ended
31 August 2022 in late November 2022.
(1) Comprising earnings adjusted for interest, taxation,
depreciation, amortisation, goodwill impairment and adjusting
items
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 +44 (0) 149 446 2246
Tim Carroll, Chief Executive Officer
Sally McKone, Chief Financial Officer
Investec Bank plc (Nominated Adviser and Joint Broker) +44 (0) 20 7597 5970
David Flin
William Brinkley
Charlotte Young
Peel Hunt LLP (Joint Broker) +44 (0) 20 7418 8900
Michael Burke
Paul Gillam
James Smith
Belvedere Communications +44 (0) 20 3008 6864
John West
Llew Angus
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 nine established brands: Focusrite, Focusrite
Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal Audio,
Sequential and Linea.
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. Linea designs, develops,
manufactures and sells market innovative professional audio
equipment globally.
The Focusrite Group has offices in four continents and a global
customer base with a distribution network covering approximately
240 territories.
Focusrite plc is traded on the AIM market, London Stock
Exchange.
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END
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