Share boost for audio firm Focusrite as it dials up revenue forecast
Shares in audio equipment manufacturer Focusrite rose more than six per cent this morning after it forecast full-year revenue ahead of expectations.
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Focusrite, which makes studio equipment such as microphones and equalisers, said it expected revenue of roughly £84m, up from £75.1m last year.
The increase was driven by a 10 per cent rise in revenue from its existing business, as well as roughly six weeks’ revenue from Adam Audio, the German studio monitor company it acquired in July for £16.2m.
Focusrite said its margins remained constant on the previous year, and earnings before interest, tax, depreciation and amortisation were also set to be ahead of expectations.
“We have held steadfast to our core growth strategy and executed as planned despite so many macro-economic factors at play across the world,” said chief executive Tim Carroll.
“Our product roadmap continues to strengthen with significant new product releases planned for the first half of the new financial year. We continue to execute on our growth strategy while closely monitoring unpredictable global issues such as US tariffs and Brexit and have in place action plans to mitigate any foreseen negative impacts to our business.”
Focusrite said the release of its latest generation of Scarlett amplifiers had been well received, and that its cash balance remained strong, despite the acquisition.
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Kate Heseltine, director of equity research at Edison, said: “These results are testament to the success of the global growth strategy, despite macro-economic headwinds, and strength of the core brands.”
Main image credit: Getty