Focus on customers sees Focusrite earnings surge

Music and audio hardware and software supplier Focusrite announced its half year results for the six months to 28 February on Wednesday, reporting “strong” organic growth across all key financial metrics and key performance indicators.

The AIM-traded firm said group revenue was up by 23.7% to £32m, while adjusted EBITDA rose 27.2% to £6.1m.

Its operating profit was up by 44.9% to £4.6m, with profit before tax improving 89.1% to £4.6m.

Basic earnings per share totalled 7.3p, up by 82.5%, and adjusted diluted earnings per share were 7.0p, up by 52.2%.

Net cash at period-end stood at £9.4m, compared to £4.0m year-on-year, and the board confirmed an interim dividend of 0.75p, up 15.4% from 0.65p at the previous half-year.

On the operational front, the board noted the appointment of Tim Carroll as its new group CEO, and reported continued growth in all geographies across both the Focusrite and Novation brands.

It said there had been “strong growth” in the US market, with revenue increasing by 25% on a constant currency basis, driven primarily by an increase in Novation Launchpad sales.

Europe, Middle East and Africa revenue was up by 5% and Rest of World revenue was up by 8%, also on a constant currency basis.

Strong sales of the second generation Scarlett USB audio interface range were seen, the board said, with the product continuing to gain market share.

Six new products in total were launched during the period.

The company made further progress in Novation Apps, with cumulative downloads now exceeding six million, as well as more than 500,000 active users.

Strategic wins were also seen in the post-production and broadcast market with the RedNet suite of solutions.

“We have enjoyed another period of significant growth,” said executive chairman Philip Dudderidge.

“We strive to develop further innovative market-leading products and to be the most recognised brand in our market place.

“In these aims, our people continue to be our key asset and I am delighted that we have now hired Tim Carroll as the group's new CEO to guide us through our next phase of development.”

Dudderidge said he was confident that the future of the group remained in “good hands.”

Commenting on the current trading and outlook, Tim Carroll said Focusrite had firmly established itself as a market leader, and its aim was to capitalise further on that by continuing to “excite and empower” its customers.

“By improving the product and customer experience, we will seek to extend the customer lifecycle, keeping them using our products longer throughout their music making lifetime.

“Since the half year end, revenue and cash have both continued to grow strongly.

“The new products introduced in the period and the second generation of our market-leading Scarlett range continue to sell well, and we look forward with confidence to the second half of the current financial year and beyond.”