Slide 1: Interim results for the half year ending 29 February 2016
Focusrite plc Interim results for the half year ending 29 February 2016 April 2016 1
Slide 2: Disclaimer
Disclaimer The content of this document (the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”), as amended. Reliance on this document for the purpose of engaging in any investment activity may expose an individual
Slide 3: Agenda
Agenda Introduction Phil Dudderidge Highlights Markets and Products Financial Review Jeremy Wilson Outlook and Summary Phil Dudderidge Jeremy Wilson Phil Dudderidge Executive Chairman Chief Financial Officer 3
Slide 4: Introduction
Introduction Global music and audio products company supplying hardware and software products used by professional and amateur musicians, enabling high quality production of music. Founded in 1989 Two established brands: – Focusrite: audio recording equipment – Novation: hardware and software
Slide 5: Key points to remember
Key points to remember Focusrite is a market leader – Best quality product at each price point. – Good quality, high performing people. Our culture is entrepreneurial and opportunistic. – Recording studio console company -> No. 1 audio interface company in the world. – Plus Novation, RedNet and
Slide 6: Agenda
Agenda Introduction Phil Dudderidge Highlights Markets and Products Financial Review Jeremy Wilson Outlook and Summary Phil Dudderidge 6
Slide 7: Highlights
Highlights Revenue £m Revenue up 8.7% including 50 continued growth in all regions. 48.0 40 41.0 36.1 Important new products launched 30 including Focusrite’s Red range and 20 25.3 25.9 Novation’s Circuit. 20.2 13.9 10 9.1 Fifth year as one of the “100 Best 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Slide 8: Sectors: Focusrite
Sectors: Focusrite Price • Live, Broadcast, Education & Pro Studio RedNet c2% market share Red • Best quality interfaces. New range • Thunderbolt range. Now c10% market Clarett share Scarlett • Mass market interfaces. c40% market share iTrack • Mobile recording. New market Software • Low cost, highl
Slide 9: Sectors: Focusrite
Sectors: Focusrite Focusrite H1 FY16 H1 FY15 Growth £m £m % Revenue 16.9 15.3 10.5% • Major products launched – Scarlett still continues to gain share four years after its launch – Clarett picking up speed. Market share in US now 10%. – Red launched March 2016. The best of the best in our interface
Slide 10: Sectors: Novation
Sectors: Novation Grids Keys Keyboard Launchpads Controllers With Ableton (Controllers) Circuit Synths Stand Alone (Groove) 10
Slide 11: Sectors: Novation
Sectors: Novation Novation H1 FY16 H1 FY15 Growth £m £m % Revenue 7.3 6.8 6.7% • Circuit launched Sep 2015: Make music in seconds • Blocs Wave app launched March 2016 • Second app from London software team, following Launchpad app which has now had over 4 million downloads 11
Slide 12: Sectors: UK Distribution
Sectors: UK Distribution Distribution H1 FY16 H1 FY15 Growth £m £m % Revenue 1.6 1.6 0.6% • KRK studio monitors • New distributorship of sE Electronics microphones • Strategic interest 12
Slide 13: Financial Highlights
Financial Highlights Financial Highlights Financial Highlights for the six months ended 29 February 2016 Group revenue up by 8.7% to £25.9 million (HY15: £23.8 million) Adjusted EBITDA1 up by 3.1% to £4.8 million (HY15: £4.7 million) Operating profit up by 6.7% to £3.2 million (HY15: £3.0 mill
Slide 14: Income statement
Income statement Income Statement H1 FY16 H1 FY15 Growth £ million Revenue up 8.7%. • Both major brands and all major territories Revenue 25.9 23.8 8.7% increasing. Cost of sales -15.6 -14.4 • 5.6% at constant exchange rates (Stronger $, Gross profit 10.3 9.4 10.0% weaker €). Operating expenses befo
Slide 15: Balance Sheet
Balance Sheet Balance£ Sheet million H1 FY16 H1 FY15 Intangible fixed assets include £4.0m of Intangible assets 4.4 3.6 capitalised R&D and £0.4m of goodwill Tangible assets 1.4 1.2 • R&D spend is 6.4% of revenue. Total non current assets 5.8 4.8 • Prudent capitalisation (c80%) and aggressive amorti
Slide 16: Cash flow
Cash flow Cash flow statement £ million H1 FY16 H1 FY15 Working capital higher due to higher stock (new Adjusted EBITDA 4.8 4.7 products) and debtors (increase terms for US Movement in wc (ex non- distributor. underlying items) -4.1 -0.5 Operating cash flow (ex non- Investing £1.7m, (H1 FY15, £1.8m)
Slide 17: Dividend
Dividend Dividend Progressive dividend policy although major focus remains business growth. Proposed interim dividend 0.65p up 8.3% on H1 FY15 (0.6p) Important dates • Ex div date 5 May 2016 • Record date 6 May 2016 • Payment date 3 June 2016 17
Slide 18: Agenda
Agenda Introduction Phil Dudderidge Highlights Markets and Products Financial Review Jeremy Wilson Outlook and Summary Phil Dudderidge 18
Slide 19: Current Trading
Current Trading Outlook Since the half year end, March and April have been busy, productive months and revenue has continued to grow in line with expectations. The new Focusrite Red product range has started shipping, existing products continue to sell well and we are excited about further significa
Slide 20: Summary
Summary Summary Revenue up 8.7% with growth in both the Focusrite and Novation divisions and in all major territories Adjusted EBITDA up by 3.1% to £4.8 million (H1 FY15: £4.7 million) Significant new products launched (including further Clarett interfaces, Circuit groove-box and the best Red interf
Slide 21: Making Music Easy to Make
Making Music Easy to Make 21