Focusrite warns on FY profits amid 'challenging market conditions'
By Iain Gilbert
Date: Monday 18 Mar 2024
(Sharecast News) - Audio products business Focusrite warned on Monday that full-year revenue and profits would be lower than consensus estimates as a result of "challenging market conditions" and continued weakness in Asia.
Focusrite said revenues for the year ending 31 August were now anticipated to be no less than £155.0m, while underlying earnings were pegged to be in the range of £27.0m to £30.0m, with a heavier weighting towards H2 than in FY23. Consensus estimates for sales sat at £182.0m, while forecasts for EBITDA were £38.0m.
The AIM-listed group said its first-half performance was impacted by "similar factors across the group's geographic regions", noting that the global content creation market "continues to struggle" due to a number of macroeconomic issues. Content creation revenue in Asia showed "particular continued weakness", with now 18 months of continuous decline, the largest negative impacts being in China and Japan, and no improvement likely to take place in the remainder of the year.
However, notwithstanding the firm's "cautious outlook" for the current financial year, Focusrite said it remains "well-positioned for future growth", when market conditions in the content creation market improve, with a clear focus on increasing market share, and delivering new products as well as making targeted acquisitions.
As of 1300 GMT, Focusrite shares were down 27.34% at 279.75p.
Reporting by Iain Gilbert at Sharecast.com
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