09/12/2019 | Press release | Distributed by Public on 09/12/2019 00:05
Strictly embargoed until 07.00, 12 September 2019
('the Company' or 'the Group')
Trading update for the year ending 31 August 2019
Focusrite Plc (AIM: TUNE), the global music and audio company supplying hardware and software products used by professional and amateur recording engineers and musicians, is pleased to update the market on another successful year in which revenue and profits have grown strongly.
The Company expects revenue for the financial year ending 31 August 2019, to be ahead of market expectations at approximately £84 million, up from £75.1 million last year. This growth comprises an increase of approximately 10% for the existing business (c6% on a constant currency basis) and approximately six weeks of revenue for ADAM Audio, a German studio monitor company, which was acquired on 16 July 2019 for a total consideration of £16.2 million in cash. Margins have remained consistent with the prior year and as a result EBITDA is also expected to be ahead of market expectations.
Cash generation continues to be a prime focus for the Group and, despite the acquisition, net cash as at 31 August 2019 remained a healthy £14.9 million. For comparison the net cash balance as at 31 August 2018 was £22.8 million.
Tim Carroll, Chief Executive commented:
'We have held steadfast to our core growth strategy and executed as planned despite so many macro-economic factors at play across the world. We successfully released the latest generation of the Scarlett range of products (Gen 3) in July 2019, which has been well received by resellers and end users. They have welcomed the advances we made in the hardware, as well as the innovative new software features that make the product easier to set up and use.
Additionally, we made our first significant acquisition since becoming a publicly listed company, acquiring Berlin-based ADAM Audio in July. The acquisition extends the Group's product offering to incorporate a comprehensive range of studio monitors well-aligned to our existing customer base. The business is growing and profitable and early indicators are that it is a good fit. The ADAM team are settling in well.
Our product roadmap continues to strengthen with significant new product releases planned for the first half of the new financial year. We continue to execute on our growth strategy while closely monitoring unpredictable global issues such as US tariffs and Brexit and have in place action plans to mitigate any foreseen negative impacts to our business.'
The Company expects to announce final results for the year ended 31 August 2019 in late November 2019.
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This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).
Focusrite Plc +44 1494 836301
Tim Carroll (CEO)
Jeremy Wilson (CFO)
Panmure Gordon (Nomad and Broker): +44 20 7866 2500
Belvedere Communications: +44 20 3567 2756
Notes to Editors
Focusrite plc is a global music and audio products group that develops and markets proprietary hardware and software products. Used by recording professionals and musicians alike, its solutions facilitate the high-quality production of recorded and live sound. The Focusrite Group trades under five established brands: Focusrite, Focusrite Pro, Novation, Ampify and ADAM Audio.
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 monitors have earned a worldwide reputation based on technological innovation in the field of loudspeaker technology. The product portfolio includes its T, AX, and S Series product ranges, aimed at different levels of musicians and recording engineers, as well as its subwoofer and headphone ranges.
The Focusrite Group has a global customer base with a distribution network covering approximately 160 territories. Focusrite is headquartered in High Wycombe, UK, with marketing offices in Los Angeles and Hong Kong. ADAM Audio has offices in Berlin, Nashville and Dongguan. Focusrite Plc is traded on the AIM market, London Stock Exchange.