Disappointing, I’ve cut my losses. Was hoping for something a bit more neutral at least. I think the end of year will be better so will be watching as I think the business sound. |
Any thoughts on the results today? Would be good to have some guidance on the Focusrite brand, as it's so material to results overall |
Beddard a buy and hold investor with an unusual but successful approach has given Focusrite full marks on his in house system.
hxxps://www.ii.co.uk/analysis-commentary/richard-beddard-supplier-prince-and-van-halen-gets-top-marks-me-ii526508 |
Berenberg initiates coverage with a Buy rating and a price target of 1100p. That's a 40%+ rise from where it is today. If only. Unfortunately this seems to be out of favour at the moment, with very little interest. I still like it and like the management and quality of products, so believe it will do well in the long run, but the opportunity cost is getting higher. |
Nice acquisition today. Expected to be earnings enhancing in current year.
"....pleased to announce the acquisition of Sonnox Limited ("Sonnox"), a leading designer of audio processing software plug-ins for professional audio engineers."
"Based near Oxford, Sonnox is a well-established and acclaimed brand in the global audio industry. Its range of innovative, high quality, award-winning processing software is used in a wide range of audio applications including mixing for music production, live sound, broadcast, TV & Film, and even scientific and forensics projects." |
Interesting to hear alternative views. Sales at Scarlett have dropped but are materially above pre pandemic levels. I think the acquisitions are about extending reach/depth. Performance at ADAM Audio has been disappointing but Martin Audio has done well. I personally quite like how they break down/comment on the various business segments. |
Sold all my holdings. Focusrite had been in my 'worry' category for a while; the recent results and management commentary was the final nail in the coffin. Results generally on the whole were quite poor in my view, best selling product the Scarlett saw declining sales, free cashflow was negative this year. Additional acquisitions were made without any description of how they fitted within the overall strategy. Management blamed the poor performance on a plethora of external factors such as Ukraine, Inflation, plus some others which they thought would probably sound good to mention like Geopolitics... clearly looking to hide their own incompetence. |
Final results released on 08/12/2022 revealed FY 2022 EPS of 42.5p at the basic level and 52p at the adjusted/diluted level which I think is a good performance in current conditions. Also outline that first quarter trading for FY 2023 "has finished in line with our expectations". Does anyone know if there are any published expectations in the market? |
Full year results are due in about a month's time. The September trading update provided a 'slightly below board's expectations' warning without any further numerical detail. I'm hoping they are still able to hit EPS around the 40p level (which would put it on a PE of around 17) and await outlook commentary with interest. |
Very positive statement in a return to more normal conditions. Hockey stick for this years results. So not without risk. But then they are a class act. |
[SharePad] Screening For My Next Long-Term Winner: FOCUSRITE #TUNE
"A board led by two hands-on industry veterans makes a refreshing change from the accountants that so often take charge of public companies" |
This is a great company, they keep turning it on. Fall in price recently is well over done. I hope therefore we can see a strong rebound. |
This sounds quite a complementary acquisition Not sure why it wasn't announced in the morning trading update. |
Trading update due during March according to company's website. |
Thanks I assume we're expecting an update any time now, given there was one on 19Feb 2022. G4M looks to have slumped similarly to TUNE - their Jan update highlighted a big drop in non-UK sales. I really must respect my stop loss points! |
...from last year..
Focusrite plc issued a Trading Update for the year ending 31st August 2021. Due to strong trading performance during the year, the Group now expects revenue for the financial year ending 31 August 2021 to be ahead of market expectations at approximately £173 million, up from £130 million last year. EBITDA is also expected to be ahead of current market expectations, as gross margins have been maintained at similar levels to the prior year and the Group experienced a substantial decrease in travel and trade shows due to the restrictions and changes in working practices caused by COVID-19....from WealthOracleAM |
This would give a crude clue on the financials tab but some care is reqd that Market Screener's estimates tend to be statutory numbers from memory. |
Excellent results. Is anyone aware of any broker estimates for FY22 and beyond? |
Focusrite upgraded to Buy from Add at Peel Hunt Peel Hunt analyst James Lockyer upgraded Focusrite to Buy from Add with a 2,164 GBp price target. |
 'But will demand pose the real problem'.
A blunt 'no' from me. Here's why:
Demand reductions are already priced in. With estimates now at £178m vs £173m FY21 given the sequential acquisition is £9m extra revenue in FY22 that already makes the true estimate £169m.
There's also the return of demand for Martin Audio. Revenue was £12m in the FY20 results and I noted they said it had rose 23% so it's now £14.7m. It was on £21.7m revenue when they bought it and they flag it has been winning new business by going after new markets. If cautiously we take £21.7m and add 15% for these new customers then there's £10m there too. This also ignores any pent up demand from venues being closed for so long.
Finally, there's also the usual long list of new products to be launched in the year. Focusrite has an excellent track record on these and they will help with the 2022 organic figure. Seeing as terminal organic is usually around 7% that's an extra £12m there.
So overall to price revenue below £178m you have to expect £4m+£10m+£12m=£26m declines elsewhere. Even if you take £173m-£13m Martin revenue and then do a 10% decline like the cited G4M example then the figure still comes out at £188m or £10m above current analyst estimates and this is before any potential acquisitions from the net cash.
When you work through the figures you can see why they have already guided for 'modest increases' to revenue from the year just gone. They didn't have to guide on this and wouldn't have done this so early in the year if they weren't confident in hitting them. |
Nice overview here of the recent results. I'm not a shareholder but wish I was. https://www.thetwentiestrader.com/post/focusrites-report-cites-supply-chain-issues-but-will-demand-pose-the-real-problem |
Peel have according to The Times upped this year's revenue 17% and next by 16% on the back of yesterday's update. Anyone got details on the pbt/eps lines? |
Wow phenomenal. Like the bit about live music in 22/23.
And repayment of Sequential debt in just 4 months.
Onwards
Upwards. |
Commenting on the outlook Tim Carroll CEO, said:"Since the year end, demand for the vast majority of our Group products has remained strong, and those sectors negatively impacted by COVID-19 are showing ongoing signs of recovery. All the Group's acquisitions are settling in well, numerous cross-business initiatives have already been completed and many more are slated to occur later this year, the benefit of which we expect in the latter part of FY22 and into FY23. Our roadmap across all the brands remains robust, with many new product introductions planned to occur later in FY22. Accordingly, we are now cautiously optimistic about the prospects for modest revenue growth in the current year.That last statement about "modest revenue growth" is in contrast to previous analysts who thought the business would contract!Onwards and upwards! Well done Focusrite! |
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