Trading Update for the year ended 31 August 2023
Strictly embargoed until 07.00, 14 September 2023
Focusrite plc
("Focusrite" or "the Group")
Trading Update for the year ended 31 August 2023
Focusrite plc (AIM: TUNE), the global music and audio products group supplying hardware and software used by audio professionals and musicians, is pleased to provide the following update on trading for the year ended 31 August 2023 (FY23).
Despite challenging markets, particularly in Asia, the Group is still showing material growth over pre pandemic levels and has retained its strong market share, supported by 28 product introductions, most notably a new generation of Scarlett, the market leading range of Focusrite audio interfaces, which launched on 31 August 2023. Within the Content Creation division, the Focusrite brands returned to growth in H2 FY23 compared with H2 FY22 whilst the Audio Reproduction division continued to grow by a double-digit percentage. Overall, revenue for the Group in H2 FY23 was slightly ahead of the comparable period in FY22. As a result, Group revenue for FY23 is expected to be not less than £177 million (FY22: £184 million). Supported by improved gross margins, our expectations are for EBITDA1 for the full year to be around the lower end of current market expectations, which currently range between £38.2 million and £39.0 million.
As at 31 August 2023 the Group had net debt2 of approximately £1.5 million (FY22: net debt £0.3 million, FY23 H1: net debt £13.2 million). This includes the acquisition of Sonnox Ltd in December 2022 for a net cash consideration of £7.2 million. Working capital has improved significantly in the second half as inventory in the channel has reduced as expected to more normal levels.
The Group expects to announce its audited final results for the year ended 31 August 2023 in late November 2023.
Tim Carroll, Chief Executive commented:
"We are pleased with our full year results and the strategic progress the Group is making against the background of extremely challenging trading conditions throughout the year. Our fourth generation of Scarlett has been launched to critical acclaim, and well received in the sales channel, reflecting the investment and innovation which have made this product the market leader. Inventory in the channel for our Content Creation brands continues to unwind with levels returning to historic norms as we approach the winter holiday season. Our Audio Reproduction businesses have continued to show good growth, reflecting the continued returning demand for live sound and events across the globe. We remain mindful of current industry wide macro-economic factors, though we believe we are well placed to manage them accordingly."
1 EBITDA defined as earnings adjusted for interest, taxation, depreciation and amortisation.
2 Net debt defined as cash and cash equivalents, overdrafts and amounts drawn against the Revolving Credit Facility (RCF) including the costs of arranging the RCF.
-Ends-
Enquiries:
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Focusrite plc: |
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Tim Carroll (CEO) |
+44 1494 462246 |
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Sally McKone (CFO) |
+44 1494 462246 |
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Investec Bank plc (Nominated Adviser and Joint Broker) David Flin Edward Knight William Brinkley
Peel Hunt LLP (Joint broker) Paul Gillam Michael Burke James Smith
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+44 20 7597 5970
+44 20 7418 8900 |
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Belvedere Communications John West Llew Angus |
+44 20 3008 6864 |
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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 Group trades under eleven established brands: Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal Audio, Linea Research, Sequential, Oberheim and Sonnox.
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 design and manufacture 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. Linea Research designs, develops, manufactures and sells market innovative professional audio equipment globally. Sequential designs and manufactures high end analogue synthesizers under the Sequential and Oberheim brands. Sonnox is a leading designer of innovative, high quality, award-winning audio processing software plug-ins for professional audio engineers.
The 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 Alternative Investment Market (AIM) of the London Stock Exchange.
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