Strictly embargoed until 07.00, 10 July 2020
( " the Company" or " the Group")
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, gives the following update on current trading.
Overall, revenue and profits for the Group are currently ahead of where the Board would expect them to be at this stage of the financial year and it is therefore likely that market expectations for the financial year ending 31 August 2020 will be exceeded.
As announced in the interim results on 12 May 2020, demand for Focusrite Audio Engineering and ADAM Audio products has been strong during the widespread lock-downs that have occurred as a result of COVID-19, thanks to widespread availability globally through e-commerce platforms. Consumer registrations of products primarily focused on home recording equipment have risen, indicating increased consumer demand. This has, in turn, led to increased reseller demand from the Group. Moving forward, it is expected that demand for these products will revert to a more normal level as the lock-downs ease. Conversely, as announced in May 2020, demand for Martin Audio products has been significantly lower than pre-COVID levels of expectation due to the suspension of live music tours and festivals, although demand is now starting to show modest signs of recovery driven by the installed sound segment. Similarly, Focusrite Pro has seen muted performance as well, although the pipeline across education, post-production and installed sound is now showing signs of recovery.
In general, resellers and distributors have paid on time and therefore, combined with the higher revenue, cash flow of the Group has also been stronger than expected in the year to date. In the interim results announcement in May 2020, the Board deferred the decision on the interim dividend in light of the uncertainty caused by COVID-19. Given the recent positive cash flow, the Board has now decided to pay an interim dividend of 1.3 pence, up 8.3% from the prior year interim dividend of 1.2 pence. This will be paid by the end of the current financial year.
Tim Carroll, Chief Executive commented:
"The increase in demand for Focusrite and ADAM products has been pronounced during the lock-downs and we are very grateful that so many people around the world are choosing our solutions for their creative needs. I would like to thank the resellers and the manufacturers for all the work that they have done during this period. Martin Audio and Focusrite Pro are now starting to turn the corner and we are optimistic about the long term opportunities in the markets they serve.
Finally, I would like to thank our employees who have done an amazing job acclimatising so quickly to a home-working environment and worked incredibly hard. The Group has performed well across all departments in these very trying times."
The Company expects to issue its next trading update in September 2020, shortly after the end of the financial year.
Focusrite plc: +44 1494 836301
Tim Carroll (CEO)
Jeremy Wilson (CFO)
Panmure Gordon (Nominated Adviser and Broker) +44 20 7886 2500
Freddy Crossley / Alina Vaskina
Belvedere Communications +44 20 3687 2756
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
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 six established brands: Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio and Martin 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 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.
The Focusrite Group has a global customer base with a distribution network covering approximately 160 territories. Both Focusrite and Martin Audio are headquartered in High Wycombe, UK, with marketing offices in Los Angeles and Hong Kong. ADAM Audio has offices in Berlin, Nashville and Dongguan, China. Martin Audio has a US subsidiary, based in Los Angeles.
Focusrite plc is traded on the AIM market, London Stock Exchange.
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