Business
Trading Update for the year ended 31 August 2023
Trading Update for the year ended 31 August 2023.
About this update from Focusrite Plc
[{"type":"text","content":"\n\nStrictly embargoed until 07.00, 14 September 2023\nFocusrite plc\n(\"Focusrite\" or \"the Group\")\nTrading Update for the year ended 31 August 2023\n\nFocusrite plc (AIM: TUNE), the global music and audio products group supplying hardware and software used by audio professionals and musicians, is pleased to provide the following update on trading for the year ended 31 August 2023 (FY23).\nDespite challenging markets, particularly in Asia, the Group is still showing material growth over pre pandemic levels and has retained its strong market share, supported by 28 product introductions, most notably a new generation of Scarlett, the market leading range of Focusrite audio interfaces, which launched on 31 August 2023. Within the Content Creation division, the Focusrite brands returned to growth in H2 FY23 compared with H2 FY22 whilst the Audio Reproduction division continued to grow by a double-digit percentage. Overall, revenue for the Group in H2 FY23 was slightly ahead of the comparable period in FY22. As a result, Group revenue for FY23 is expected to be not less than £177 million (FY22: £184 million). Supported by improved gross margins, our expectations are for EBITDA1 for the full year to be around the lower end of current market expectations, which currently range between £38.2 million and £39.0 million.\nAs at 31 August 2023 the Group had net debt2 of approximately £1.5 million (FY22: net debt £0.3 million, FY23 H1: net debt £13.2 million). This includes the acquisition of Sonnox Ltd in December 2022 for a net cash consideration of £7.2 million. Working capital has improved significantly in the second half as inventory in the channel has reduced as expected to more normal levels. \nThe Group expects to announce its audited final results for the year ended 31 August 2023 in late November 2023.\nTim Carroll, Chief Executive commented:\n\"We are pleased with our full year results and the strategic progress the Group is making against the background of extremely challenging trading conditions throughout the year. Our fourth generation of Scarlett has been launched to critical acclaim, and well received in the sales channel, reflecting the investment and innovation which have made this product the market leader. Inventory in the channel for our Content Creation brands cont...