Focusrite PLC Trading Statement (6015S)
July 10 2020 - 2:00AM
UK Regulatory
TIDMTUNE
RNS Number : 6015S
Focusrite PLC
10 July 2020
Strictly embargoed until 07.00, 10 July 2020
Focusrite plc
( " the Company" or " the Group")
Trading Update
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, gives the
following update on current trading.
Overall, revenue and profits 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 market expectations
for the financial year ending 31 August 2020 will be exceeded.
As announced in the interim results on 12 May 2020, demand for
Focusrite Audio Engineering and ADAM Audio products has been strong
during the widespread lock-downs that have occurred as a result of
COVID-19, thanks to widespread availability globally through
e-commerce platforms. Consumer registrations of products primarily
focused on home recording equipment have risen, indicating
increased consumer demand. This has, in turn, led to increased
reseller demand from the Group. Moving forward, it is expected that
demand for these products will revert to a more normal level as the
lock-downs ease. Conversely, as announced in May 2020, demand for
Martin Audio products has been significantly lower than pre-COVID
levels of expectation due to the suspension of live music tours and
festivals, although demand is now starting to show modest signs of
recovery driven by the installed sound segment. Similarly,
Focusrite Pro has seen muted performance as well, although the
pipeline across education, post-production and installed sound is
now showing signs of recovery.
In general, resellers and distributors have paid on time and
therefore, combined with the higher revenue, cash flow of the Group
has also been stronger than expected in the year to date. In the
interim results announcement in May 2020, the Board deferred the
decision on the interim dividend in light of the uncertainty caused
by COVID-19. Given the recent positive cash flow, the Board has now
decided to pay an interim dividend of 1.3 pence, up 8.3% from the
prior year interim dividend of 1.2 pence. This will be paid by the
end of the current financial year.
Tim Carroll, Chief Executive commented:
"The increase in demand for Focusrite and ADAM products has been
pronounced during the lock-downs 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.
Finally, I would like to thank our employees who have done an
amazing job acclimatising so quickly to a home-working environment
and worked incredibly hard. The Group has performed well across all
departments in these very trying times."
The Company expects to issue its next trading update in
September 2020, shortly after the end of the financial year.
-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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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