REG - Focusrite PLC - Trading Update

FocusriteAnnouncement

10/03/2022 07:00

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RNS Number : 2761E  Focusrite PLC  10 March 2022

Strictly embargoed until 07.00, 10th March 2022

Focusrite plc

("Focusrite" or "the Group")

H1 FY22 Trading Update

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 financial year ending 31 August 2022 ('FY22').

Revenue, profits, and cash for the Group are in line with Board expectations
for the first half of the year.  The Group is pleased that overall demand for
the Group's products has remained strong, with revenues for H1 2022 expected
to be not less than £91 million.  As previously reported, revenue during the
comparative period in H1 2021 (£95.3 million) was exceptionally high.
Comparatives will ease in the second half of the financial year.

Industry wide global factors, referred to at the time of the 2021 final
results announcement and at our AGM in December, such as supply constraints
due to the shortage of electronic components and high freight costs, have
resulted in some downward pressure on gross margin in the short term.  The
Group continues to take a variety of actions to manage these challenges and
meet demand.  Additionally, in view of the conflict in Ukraine, the Group has
suspended all sales to the Russian Federation and to the Republic of Belarus,
with sales to Ukraine not currently possible. Trade with these countries is
transacted via distributors and makes up a very small proportion of the
Group's revenue and is expected to be replaced by demand from other regions.

Cash generation in the first half, which reflects a planned increase in
inventory, is in line with the Board's expectations, with net cash at 28
February 2022 of £17.8 million.

The Board is confident that the Group is on course to meet its full year
expectations and will give more detailed guidance at the time of the
announcement of the H1 2022 results on 26 April 2022.

 

- 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

Edward Knight

Michael Burke

James Smith

 

Belvedere
Communications
+44 (0) 20 3687 2756

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 eight established brands:
Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal
Audio, 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 240 territories.

Focusrite plc is traded on the AIM market, London Stock Exchange.

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