Focusrite (TUNE)

Sector:

Leisure Products

Index:

FTSE AIM 100

385.00p
   
  • Change Today:
    -2.50p
  • 52 Week High: 595.00
  • 52 Week Low: 285.00
  • Currency: UK Pounds
  • Shares Issued: 59.21m
  • Volume: 35,822
  • Market Cap: £227.96m

Focusrite hikes dividend as strong demand continues

By Josh White

Date: Tuesday 26 Apr 2022

LONDON (ShareCast) - (Sharecast News) - Audio hardware company Focusrite reported group revenue of £92.9m in its first half on Tuesday, down from £95.3m year-on-year, but in line with expectations.
The AIM-traded firm noted that its revenue was still "significantly ahead" of pre-pandemic levels in the first half of 2020, when it was £49.9m, and was also higher than the second half of 2021 at £78.6m, despite ongoing Covid-19 and component supply issues.

Focusrite brand revenue was down 11.7% to £65.4m, while ADAM Audio revenue fell 33.1% to £8.4m, with component shortages delaying a product range transition and reducing supply.

Martin Audio revenue surged 44% to £12.5m, however, benefiting from both strong installed sound sales and the start of the return of live events, while revenue from Sequential totalled £6.6m following the brand's acquisition in April 2021, in line with the board's expectations.

Gross margins came in at 46.6%, higher than the pre-pandemic comparator at 46.1%.

Compared to the first half of 2021, Focusrite said pricing actions had more than offset material cost increases, but short-term freight cost impacts resulted in a reduction of 1.4 percentage points.

Adjusted EBITDA totalled £22.2m, representing 23.9% of sales, and "significantly ahead" of pre pandemic levels of 18.3% of sales, although lower than last year at 30.7%.

The company said the year-on-year comparator was boosted by Covid-19 savings, and now reflected a cost infrastructure supporting a larger international group.

Focusrite said it launched seven new products in the period, including Clarett Plus ranges, Circuit Tracks groovebox, Optimal Audio speakers, Prophet 5 expansion card and Ampify new features, which were all expected to contribute to its second half performance.

It said "strong" production levels of Scarlett interfaces were enabling inventory levels to begin to rebuild, while the acquisition of Linea Research on 10 March for £12.6m brought around £1m of cash in its net assets.

The board declared an interim dividend of 1.85p, up 23.3% year-on-year.

"Demand for the group's portfolio of products has remained strong, and the group's overall performance in the half year was in line with our expectations and remains on track for the full year," said chief executive officer Tim Carroll.

"As anticipated, demand and sales volumes for home creation solutions have tapered off from the unprecedented high levels during the peak of lockdown but remain materially ahead of pre pandemic levels.

"This is further supported by many trade sources citing continued growth in streaming services and content creation."

In addition, Carroll said the group saw the installed sound market continue to grow, with positive signs towards a full recovery of live events.

"The group's continued diversification of its portfolio, routes to market, and logistics served us well during the first half, enabling us to perform well despite many challenging global macroeconomic issues at play."

At 1004 BST, shares in Focusrite were up 2.27% at 1,125p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Focusrite Market Data

Currency UK Pounds
Share Price 385.00p
Change Today -2.50p
% Change -0.65 %
52 Week High 595.00
52 Week Low 285.00
Volume 35,822
Shares Issued 59.21m
Market Cap £227.96m

Focusrite Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
25.85% below the market average25.85% below the market average25.85% below the market average25.85% below the market average25.85% below the market average
77.78% above the sector average77.78% above the sector average77.78% above the sector average77.78% above the sector average77.78% above the sector average
Price Trend
66.86% below the market average66.86% below the market average66.86% below the market average66.86% below the market average66.86% below the market average
81.82% below the sector average81.82% below the sector average81.82% below the sector average81.82% below the sector average81.82% below the sector average
Income
70.52% below the market average70.52% below the market average70.52% below the market average70.52% below the market average70.52% below the market average
33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average
Growth
73.09% below the market average73.09% below the market average73.09% below the market average73.09% below the market average73.09% below the market average
55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average

What The Brokers Say

Strong Buy 3
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Focusrite Dividends

  Latest Previous
  Interim Final
Ex-Div 09-May-24 28-Dec-23
Paid 10-Jun-24 31-Jan-24
Amount 2.10p 4.50p

Trades for 12-Jul-2024

Time Volume / Share Price
16:28 5,000 @ 385.00p
16:35 40 @ 385.00p
16:35 40 @ 385.00p
16:28 5,000 @ 385.00p
16:24 64 @ 388.00p

Focusrite Key Personnel

CEO Timothy Paul Carrol

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