REG - Focusrite PLC - Trading Update for the year ended 31 August 2022

FocusriteAnnouncement

14/09/2022 07:00

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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 £180 million, up
from £173.9 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: £17.6 million net cash).  This
reflects the acquisition of Linea Research in May for £12.1m, 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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