Focusrite plc (AIM: TUNE), the global music and audio products company, announces Final Results for the year ended 31 August 2018.
Financial highlights
- Group revenue grew by 13.7% (constant currency1: 15.3%) to £75.1 million (FY17: £66.1 million)
- EBITDA2 grew by 18.1% to £15.5 million (FY17: £13.1 million)
- Operating profit grew 26.1% to £11.9 million (FY17: £9.5 million)
- Adjusted3 operating profit grew 22.6% to £11.6 million (FY17: £9.5 million)
- Diluted earnings per share grew 22.3% to 18.1p (FY17: 14.8p)
- Adjusted3 diluted earnings per share grew 18.9% to 17.6p (FY17: 14.8p)
- Net cash of £22.8 million (FY17: £14.2 million)
- Final dividend of 2.3p recommended, resulting in 3.3p for the year, up 22.2% on prior year
Operational highlights
- Once again, we experienced growth in both major segments (Focusrite and Novation) and in all reported geographic regions.
- In Focusrite, all major ranges (Scarlett, Clarett, Red and RedNet) grew and the overall segment grew by 17.2%.
- In Novation, the primary growth was in synthesisers following the launch of Peak, while the more established ranges such as Launch and Launchkey also grew, although at slower rates. Overall, Novation grew by 6.4%.
- New efforts and investments in localised field personnel, marketing and support has increased net promoter scores (NPS) and driven widespread growth.
- All major geographic regions grew: North America was up by 10.2%; Europe, Middle East and Africa by 18.1%; and the Rest of World by 13.3%.
- Five new products launched over the year.
- The software team continues to progress along its widened strategy of software development for both its own apps and the broader product development within the Group.
- The e-commerce website is delivering products globally as part of the Group’s efforts to ensure that customers can access the Group’s products wherever they are in the world.
1 Constant currency revenue growth is calculated by taking the sterling value of FY18 revenue, converting to FY17 annual average exchange rates and comparing with the reported revenue for FY17. In addition, all foreign exchange movements disclosed in revenue are excluded from both years.
2 Comprising of earnings adjusted for interest, taxation, depreciation and amortization.
3 Adjusted for non-underlying items (see note 4).
Chief Executive Officer Tim Carroll said:
“We are very pleased to present a set of results where growth is the overarching theme: both Focusrite and Novation segments have grown; as have all major geographic regions.
This set of results is a testament to the solid momentum that we have worked hard to achieve and, while this is important, at Focusrite we are always looking to the future to ensure our continued success.
Importantly, we continue to see strong market and reseller acceptance across our expanding portfolio, which highlights the strength of our brands, and our new product pipeline continues to grow.”
Executive Chairman Phil Dudderidge said:
“I am delighted Focusrite plc has delivered another record year.
I am very proud to have built a company that plays a long game. Focusrite is in its 30th year and has grown to become a global leader in recording hardware technology.
As a market leader, we continue to evolve and to that end the Group is also researching tools for the future direction of music recording, improving ease of workflow for the professional musician and ease of use for the musician for whom recording is a new skill to be developed.
Our history of being at the forefront of innovation in music technology, along with the fact that we have an established, global customer base, market-leading brands and a strong corporate culture, make us well placed for the future.”
Availability of Annual Report and Notice of AGM
The Annual Report and Accounts for the financial year ended 31 August 2018 and notice of the Annual General Meeting (“AGM”) of Focusrite will be posted to shareholders by 28 November 2018 and will be available on Focusrite’s website at www.focusriteplc.com.
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