Trading Update

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   [phone]

Tim Carroll, Chief Executive Officer

Sally McKone, Chief Financial Officer 

Investec Bank plc (Nominated Adviser and Joint Broker)   [phone]

David Flin 

William Brinkley 

Charlotte Young 

Peel Hunt LLP (Joint Broker)   [phone]

Edward Knight 

Michael Burke 

James Smith 

Belvedere Communications   [phone]

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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