Focusrite Delivers Trading Update In Line With Expectations
Why we think this is neutral
The trading update from Focusrite plc indicates the company's performance for the first half of the financial year was in line with expectations. While revenue growth was modest at around 4% year-on-year, the company maintained its leading market position and expects to navigate potential challenges. The increase in net debt is a concern, but the explanation provided and the expectation of improvement in the second half mitigates this somewhat. Overall, the update paints a picture of a stable business operating in a normalising market environment.
Key Points
- Revenue for the first half expected to be not less than £80 million, up from £76.9 million in the prior year
- Content Creation division grew around 5%, partially offset by a 6% decrease in Audio Reproduction
- EBITDA for the 12 months to 31 August 2025 expected to be between £24.5 million and £26.0 million, in line with market expectations
- Net debt increased to £18 million, but expected to improve in the second half
- Company has plans in place to navigate potential challenges and maintain leading market position
Summary
Focusrite plc, the global music and audio products group, has provided a trading update for the first half of the financial year. Revenue for the first half is expected to be not less than £80 million, compared with £76.9 million in the prior year. The company's performance was in line with expectations, with the Content Creation division growing around 5% and the Audio Reproduction division seeing a 6% decrease. EBITDA for the 12 months to 31 August 2025 is expected to be between £24.5 million and £26.0 million, in line with market expectations. Net debt has increased to £18 million, but the company expects this to improve in the second half. The update highlights the company's plans to navigate potential challenges and maintain its leading market position.