Focusrite to pay dividend, says FY results will beat market views

Focusrite said on Friday that results for the year to the end of August are likely to be ahead of market expectations amid increased demand for its products during lockdown and that it will pay an interim dividend.

The music and audio company, which supplies hardware and software used by professional and amateur musicians and the entertainment industry, said revenue and profits are currently ahead of where they were expected to be at this stage of the year.

Consumer registrations of products primarily focused on home recording equipment have risen, indicating increased consumer demand, it said. In turn, this had led to increased reseller demand from the group.

Still, the company expects demand to revert to more normal levels as lockdowns are eased.

Meanwhile, demand for its Martin Audio products has been "significantly" lower than pre-Covid levels of expectation as live music tours and festivals have been cancelled, but demand is now starting to show modest signs of recovery thanks to the installed sound segment, it said.

On the whole, resellers and distributors have paid on time and therefore, combined with the higher revenue, cash flow has also been stronger than expected in the year to date.

At the interim results in May, the board decided to defer its decision on the dividend due to the uncertainty caused by the pandemic. However, given the recent positive cash flow, it has now decided to pay an interim dividend of 1.3p a share, up 8.3% on the previous year.

Chief executive Tim Carroll said: "The increase in demand for Focusrite and ADAM products has been pronounced during the lockdowns 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."

At 0915 BST, the shares were up 7.9% at 685.00p.