Music and audio products business hits the right notes in trading update

Focusrite

Focusrite plc, the High Wycombe-based global music and audio products company supplying hardware and software used by professional and amateur musicians and the entertainment industry, has revenue and profits ahead of expected in its latest trading update.

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.  This has, in turn, led to increased reseller demand from the Group.

But 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 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, said: “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.

“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.