Focusrite turns the profit dial up to 11

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Focusrite PLC (LON:TUNE), the music and audio products company, hit the right notes with its trading update as it upgraded full-year expectations.

The shares rose 7.3% to 1,050p after the company said it now expects revenue for the six months to the end of February 2021 to top GBP90mln; in the same period a year earlier, revenue was GBP49.4mln.

Overall, revenue, profits and cash 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 current market expectations for the financial year ending 31 August 2021 will be exceeded, the company said in a trading statement.

“We are delighted that consumer demand for Focusrite and ADAM products has remained very high,” said Tim Carroll, the chief executive of Focusrite.

“This has resulted in increased demand from the distributors and dealers, which has translated into strong sales momentum producing higher revenues, profits and cash generation in the first half of the financial year. How this demand may be affected by the easing of lockdowns around the world is hard to judge although we do expect Martin Audio to rebound as live events restart,” Carroll said.

“The component supply situation is being caused by huge global demand for consumer electronics products. We believe that the constraint will be temporary and our relatively high volumes and excellent contract manufacturers have helped us to continue to satisfy that demand so far, but this remains a risk we are monitoring closely,” he cautioned.

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