Focusrite trading in line, suspends sales in Russia

Audio hardware and software company Focusrite said in a trading update on Thursday that revenue, profits, and cash were in line with board expectations for the first half, as it also confirmed the suspension of sales into Russia and Belarus.

The AIM-traded firm said overall demand for its products remained strong, with revenues for the first six months expected to be at least £91m.

As it previously reported, revenue during the comparative period in the first half of 2021, at £95.3m, was “exceptionally high”.

Focusrite said comparatives would ease in the second half.

“Industry wide global factors, referred to at the time of the 2021 final results announcement and at our annual general meeting in December, such as supply constraints due to the shortage of electronic components and high freight costs, have resulted in some downward pressure on gross margin in the short term,” the board said in its statement.

“The group continues to take a variety of actions to manage these challenges and meet demand.

“Additionally, in view of the conflict in Ukraine, the group has suspended all sales to the Russian Federation and to the Republic of Belarus, with sales to Ukraine not currently possible.”

Focusrite said trade with those countries was transacted via distributors, and made up a “very small proportion” of the group's revenue, which was expected to be replaced by demand from other regions.

Cash generation in the first half, which reflected a planned increase in inventory, was in line with the board's expectations, with net cash at 28 February of £17.8m.

“The board is confident that the group is on course to meet its full year expectations and will give more detailed guidance at the time of the announcement of the first half results on 26 April.”

At 1218 GMT, shares in Focusrite were up 4.06% at 1,036.4p.