Focusrite reports resilient performance, reduced net debt

(Sharecast News) - Focusrite said in an update on Tuesday that it delivered a resilient performance over the 12 months ended 31 August, with stronger second-half trading supporting expectations for full-year earnings despite ongoing macroeconomic headwinds.

The AIM-traded music and audio products group said revenue for the six months to the end of August rose to about �87m from �81.6m a year earlier, taking revenue for the full 12-month period to around �168m, up 6% on the prior year.

It said growth was driven by its content creation division, with refreshed Scarlett products and new launches from ADAM and Sequential boosting demand, while audio reproduction revenue was slightly lower, in line with post-pandemic demand trends.

Gross margins improved slightly on the first half of the financial year, aided by pricing actions and new product launches, which offset higher freight costs and an unfavourable regional mix in audio reproduction.

Focusrite noted that overheads had risen as expected, reflecting normalised variable pay and inflationary pressures.

The group said net debt had fallen to about �11m from �12.5m a year earlier and �17.9m at the half year, supported by strong cash generation and disciplined capital allocation.

It said it remained well within its �50m credit facilities and continued to expect adjusted EBITDA for the 12 months to 31 August to be within the current range of market forecasts.

Focusrite said it would publish unaudited results for the 12 months ended 31 August in early November.

At 1449 BST, shares in Focusrite were up 17.87% at 193.9p.

Reporting by Josh White for Sharecast.com.