Business
Trading Statement
Trading Statement.
About this update from Focusrite Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nFor immediate release: 07.00, 28 August 2024\nFocusrite plc\n(\"Focusrite\" or \"the Group\")\nTrading Update\nFocusrite plc (AIM: TUNE), the global music and audio products group supplying hardware and software used by professional and amateur musicians and the entertainment industry, provides the following update on trading for the year ending 31 August 2024 (\"FY24\").\nRevenues are expected to be in the region of £157 million in line with current market expectations as overall demand for the Company's products has remained resilient across the portfolio. The Audio Reproduction division continues to deliver in line with expectations, bolstered by successful product launches in the previous year and the inclusion of new brands within its portfolio, including Linea and Sheriff. As previously reported the Content Creation division continues to face a very challenging environment with both macro-economic weakness, channel consolidation and an oversupply in the channel affecting global sales across the industry. Despite this, overall product registration data and sales rankings tracked by the larger resellers continue to show that Focusrite is comfortably outperforming the overall market.\nThe Group now expects FY24 EBITDA to be around £25 million due to the impact of shipping and logistics challenges as well as various pressures on product margins. \nProduct introductions were planned for the final quarter but the benefit of these has been offset in August by a significant reduction in stocking policy by a major reseller. In addition, port congestion in a number of regions has impacted logistics at the end of the year. \nGlobal shipping and freight costs have increased further in the second half of 2024 due to strong global shipping demand and ongoing issues in the Red Sea. The Board now expects this trend in shipping and freight costs to continue into 2025. Promotions to drive sales have also continued at a higher level than anticipated reflecting the issues in the Content Creation division noted above, however this has resulted in an improvement in the working capital position since 29 February 2024.\nAs of 27 August 2024, the Group's net debt has improved to approximately £15 million (29 February 2024: net debt of £27.3 million...