Focusrite PLC Trading Update and Directorate Change (5389G)
March 18 2020 - 3:30AM
UK Regulatory
TIDMTUNE
RNS Number : 5389G
Focusrite PLC
17 March 2020
Strictly embargoed until 07.00, 18 March 2020
Focusrite plc
( " the Company" or " the Group")
Trading Update and Directorate Change
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, is pleased to
report that in the first half of the current financial year ending
31 August 2020 revenue has increased to approximately GBP50 million
(HY19: GBP40.4 million).
The outbreak of COVID-19 caused disruption in deliveries from
our suppliers in China during the month of February. This had some
impact on half year revenue, given disruption to supply, but the
Board believes that existing stocks held by the Company and its
distributors and dealers across the globe have been able to satisfy
the majority of customer demand, which remains buoyant with
consumer registration data indicat ing strong end-user sales.
Consequently, underlying performance remains in line with current
market expectations although it is hard to quantify the future
disruption due to the impact of COVID-19 in the second half of the
financial year.
Reported revenues include the two acquisitions made last year,
ADAM Audio and Martin Audio. Excluding those, the revenue for the
half year is approximately GBP38 million (HY19: GBP40.4 million).
In addition, there were orders in hand to support another GBP2
million of revenue, but the timing of supply of stock was impacted
by COVID-19. These orders will now be satisfied during the second
half of the financial year.
Cash conversion has remained positive and, as at 29 February
2020, net debt was approximately GBP20 million from a GBP40 million
facility, despite the purchase of both ADAM Audio in July 2019 and
Martin Audio in December 2019 for a combined cost of approximately
GBP54 million (including fees and net of acquired cash). This is
compared with net cash of GBP14.9 million as at 31 August 2019 and
GBP26.2 million as at 28 February 2019.
Directorate Change
The Company announces that Jeremy Wilson, CFO, has decided to
leave the Company on 31 December 2020 to pursue a range of personal
interests. Jeremy will remain in his current role to support the
Company through the current financial year and ensure a seamless
and orderly transition once a replacement has been found. Jeremy
joined the Group prior to its IPO in 2014 and has been a valued and
trusted member of the Board. He has contributed substantially to
its success and the Board are grateful to him for his service and
wish him well in his future endeavours. The Board will now start a
formal recruitment process to find a replacement and will update
the market accordingly.
Tim Carroll, Chief Executive commented:
"We are extremely pleased with the outcome for the half year,
especially considering the significant navigation needed to deal
with the issues created by COVID-19. Pleasingly, ADAM and Martin
are both settling in very well. Integration is progressing to plan
and both businesses are delivering incremental growth and profits
to the wider Group.
We are all very sad that Jeremy has decided to leave the Company
and would like to thank him for his efforts over the last six
years. We wish him good fortune for the future and are grateful
that he will stay with us until December 2020 so we can find a
suitable replacement and ensure a smooth transition.
We are optimistic that as the effects of COVID-19 in Asia
stabilise, we can continue to manufacture our excellent products
for our ever-growing user base, although obviously COVID-19 will
remain a significant concern in the second half as it affects the
world's economies and the personal lives of all our customers,
suppliers, distributors and employees."
The Company expects to issue its interim results for the period
ended 29 February 2020 in late April 2020.
-ends-
Enquiries:
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
Erik Anderson
Belvedere Communications +44 20 3687 2756
John West
Llew Angus
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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END
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