United Kingdom (September 14, 2020)—Content creation has been very good to the Focusrite Group this year, as recordists, podcasters, pros scrambling to create WFH pro-audio workspaces and others fueled demand for products from many of the brands in the company’s portfolio. As a result, despite the pandemic, Focusrite PLC had an excellent financial year, it announced today in a Trading Update to the London Stock Exchange.
Focusrite PLC’s financial year ended August 31, causing the parent company of Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio and Martin Audio to reveal that its revenues, profits and cash flow have all grown substantially, particularly since the pandemic took hold in March this year.
Focusrite PLC expects revenue for the just-ended financial year to be ahead of market expectations, at approximately £129 million ($165.7 million), up from £84.7 million ($108.8 million) last year. That number includes a full year of ADAM Audio revenue, acquired in July 2019; eight months of revenue from Martin Audio, acquired in December 2019; and growth of approximately 23% in the core Focusrite Audio Engineering business.
“The Group continues to see increased demand for solutions that enable the creation and playback of audio content for music, podcasting and streaming,” said Tim Carroll, CEO. “Much of the Focusrite Audio Engineering and ADAM Audio portfolios cater to these workflows and consequently have experienced continued high demand over and above our growth levels prior to the initial lock-downs.”
Unsurprisingly, while the pandemic fueled demand for recording-oriented products, the shuttering of live events and tours heavily affected loudspeaker brand Martin Audio, which Focusrite purchased just before the pandemic swept in. “The demand for Martin Audio products, especially for live sound events such as tours, festivals and theaters, has been negatively impacted since March 2020 due to COVID-19 restrictions,” said Carroll. “However, we are now seeing some early signs of recovery for installed sound solutions in many regions for clubs, houses of worship and corporate audio/visual solutions. We are very pleased to have repaid the net debt, required to fund the acquisition of Martin Audio, so quickly. This has been achieved in part by reductions in inventories of finished goods due to high demand.”
In the wake of the Martin Audio purchase, the company has been focused on generating cash, and at the end of its financial year, had a net cash balance of approximately £3 million—quite a move forward from the end of February this year, when it was in a net debt position of £19.9 million. As a result, the company will repay all government assistance received by Martin Audio under the UK Coronavirus Job Retention Scheme during the pandemic.
Looking ahead, Carroll noted, “We are optimistic about our future growth prospects as we continue to execute our strategy of growing our core customer base, focusing on customer value and expanding our business, both organically and through further acquisitions.”
Focusrite plc • www.focusriteplc.com