Focusrite shares jump as lockdown home recordings boost revenue
Shares in Focusrite jumped this morning after the audio firm reported “substantial” growth in revenue and profit as professionals and amateurs turned to its products during the coronavirus lockdown.
The Aim-listed firm said it expected revenue of roughly £129m for the year to the end of August, up from £84.7m last year and ahead of market expectations.
The upbeat forecasts mark growth of 23 per cent in Focusrite’s core business, as well as a revenue boost from its recent acquisitions Adam Audio and Martin Audio.
In a statement this morning the company said gross margins have also improved on last year, with profit set to come in ahead of market expectations.
Shares in Focusrite jumped almost 12 per cent in early trading.
The figures highlight booming demand for Focusrite’s products as millions of Brits were forced to stay at home during the pandemic.
Netflix actors are using the company’s equipment to record voiceovers from home, while its Scarlett range of products is being used on TV shows such as The Voice.
Focusrite said it had also enjoyed increased demand from both amateur and professional musicians for home recordings.
This was partially offset by lower demand for Martin Audio products due to the cancellation of live events, festivals and theatre performances.
But chief executive Tim Carroll said there were “early signs of recovery” in demand for installed sound systems in clubs, houses of worship and corporate settings.
Focusrite reported a net cash position of roughly £3m at the end of the year, compared to a net debt position of £19.9m at 29 February 2020.