Focusrite plc, the High Wycombe-based global music and audio products company, has reported continued strong demand for its product and expects revenue for the full year to 31 August 2021 to be ahead of market expectations. In addition, profitability for the full year will be significantly ahead of expectations as a result of strong trading together with a substantial decrease in travel and trade shows due to the restrictions and changes in working practices caused by COVID-19.
Despite the strong demand for most of the company’s products, the Board remains conscious of factors that are currently impacting operations adversely, in particular the previously reported effect of supply constraints due to the global shortage of semi-conductors and other components as widely reported by many manufacturers of electronics.
In April the company announced its half year results for the six months ended 28 February 2021. Group revenue was up by 90.9 per cent to £95.3 million and gross margin improved to 48 per cent.
At the time of these results, Tim Carroll, Chief Executive Officer, said: “The Group has performed exceptionally well throughout the first half of the financial year 2020/2021, with each brand taking on the challenges and opportunities created by the pandemic as well as delivering on our mission of ‘Removing Barriers to Creativity’. Our teams have continued to persevere, adapt, and succeed in challenging situations, and I salute every employee for their efforts.
“For the first half of the financial year, Focusrite, Novation and ADAM Audio products continued to see high demand for home-based amateur and professional audio recording solutions. This resulted in revenue for the period being slightly ahead of our revised expectations as announced on 19 February 2021. As previously discussed, we believe the base has materially grown, with more people utilising these solutions for music creation, podcasting, social media broadcasts and other streaming workflows. The digitisation of almost every facet of modern life continues unabated, and audio is no exception.
“We continue to see challenges, most notably component supply issues that are impacting many industries. However, we believe our strong relationships with our contract manufacturers and component suppliers will enable us, over time, to navigate successfully through this. We expect demand to remain higher than pre-COVID-19 levels for our ADAM Audio and Focusrite businesses, but recognise the uncertainty that the end of lockdown will bring. While demand for Martin Audio products continues to be constrained by the shutdown of live events, we are now seeing the pipeline increase for both installed and tour sound business.
“As always, we remain appropriately cautious given the unique global circumstances, but also optimistic about the future prospects for the Group.“
Focusrite makes audio interfaces – the equipment that sits between a musician and their sound being shared with the world. It owns a number of other brands, including Martin Audio which makes loudspeaker systems; Berlin-based ADAM Audio are precision innovators in professional monitoring and loudspeaker technology, made famous by their unique ART ribbon tweeter.