REG - Focusrite PLC - Trading Update for the year ended 31 August 2023

FocusriteAnnouncement

14/09/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230914:nRSN3678Ma&default-theme=true

RNS Number : 3678M  Focusrite PLC  14 September 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 EBITDA(1) 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 debt(2) 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:

 Focusrite plc:
 Tim Carroll (CEO)                                       +44 1494 462246
 Sally McKone (CFO)                                      +44 1494 462246

 Investec Bank plc (Nominated Adviser and Joint Broker)  +44 20 7597 5970

 David Flin

 Edward Knight

 William Brinkley

 Peel Hunt LLP (Joint broker)                            +44 20 7418 8900

 Paul Gillam

 Michael Burke

 James Smith

 Belvedere Communications                                 +44 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 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUOUNROVUKAAR