Business
Trading Update for the year ended 31 August 2022
Trading Update for the year ended 31 August 2022.
About this update from Focusrite Plc
[{"type":"text","content":"\n \n \n \n Focusrite plc\n \n \n \n (\"the Company\" or \"the Group\")\n \n \n \n Trading Update for the year ended 31 August 2022\n \n \n \n Focusrite plc (AIM: TUNE), the global music and audio products company supplying hardware and software used by professional and amateur musicians and the entertainment industry, is pleased to give the following update on current trading for the year ended 31 August 2022 (FY22).\n \n \n Underlying demand for the Group's portfolio of products has remained strong with end user registrations for our content creation and market leading audio interface solutions continuing at rates experienced ahead of the pandemic. In addition, the Group continues to see ongoing strength in the live and installed sound markets. As a result, we expect revenues for the full year to be in-line with the Board expectations at approximately £180 million, up from £173.9 million in the prior year.\n \n \n As previously reported, there are a number of global, industry wide factors continuing to drive up costs, including scarcity of key semiconductors and other components, and high freight costs. These have created downward pressure on gross margins, partially offset by price increases which we expect to continue into the next financial year (FY23). In addition, reflecting the increased scale of the Group, including recent acquisitions, we have continued to invest in our systems, people and direct sales channels in order to drive growth. As a result of these factors, we now expect EBITDA\n \n 1\n \n for FY22 to be slightly below the Board's expectations.\n \n \n Cash generation remains a priority. As at 31 August 2022 the Company had a net cash balance of approximately nil (FY21: £17.6 million net cash). This reflects the acquisition of Linea Research in May for £12.1m, as well as the planned rebuilding of inventory from the extremely low levels at the end of the prior year, including inventory of both finished goods and scarce components.\n \n \n Tim Carroll, Chief Executive commented:\n \n \n \"The Group continues to see increased demand for solutions that enable the creation and playback of audio content for music, post-production, podcasting, and streaming compared to pre-pandemic levels. We now have nine established brands covering a much broader customer and geo...