Focusrite Share Discussion Threads

[trader2] 19/12/2019 07:32

£39m acquisition to be funded with a bank loan and not a market offering. Makes you question why - a tad expensive perhaps? The acquisition of £39m generates an EBIT of £3m - so (crude maths) 13 years to break even.

[dab26] 13/12/2019 16:28

Marketcap is currently c. £350m, according to SLH, so debt of £60m doesn't seem too obscene to me.

Acquisitions can be tricky, as we all know, but the management's approach to the ADAM purchase appeared rational to me and from their comments they seem happy with it since it was bought.

I'm happy to give them the benefit of the doubt.

Just my tuppence worth - of course, I might be overcharging.

Regards.

[tomyumgoong] 13/12/2019 16:11

Not sure what to make of this latest RNS. It would appear that Focusrite want to be able to borrow up to £60m for acquisitions, currently they can only borrow up to £15m which limits them a bit. Have they got their eye on something? Not sure I like the idea of potential debt in the company! I like the idea of them having money in their pockets so to speak! Anyone have any views? Good news or bad news? Any thoughts?

[effortless cool] 09/12/2019 16:35

Hi Washbear,

This share is quite volatile. I bought in at 440p in August this year. It's just question of keeping an eye on it and jumping in if an opportunity presents.

[tomyumgoong] 02/12/2019 17:56

Thanks for the reply.....much appreciated. Now I understand!

[effortless cool] 30/11/2019 16:42

No problem. I had 25,000. I sold 10,000 to reduce my exposure the day before the results. After the results, there was limited liquidity, so I sold the remaining 15,000 in three 5,000 blocks opportunistically over the week following the results.

[tomyumgoong] 30/11/2019 16:26

How many shares did you have and why did you have to sell them over a number of days? Don't wish to be nosy! Please forgive my nievety!

[effortless cool] 25/11/2019 20:34

I thought this had got a bit ahead of itself before the results, and was underwhelmed with the results and the outlook, so have sold my entire holding over the last eight days for a nice profit.

I normally run my winners but I'm not convinced there is any moat here so view it more as a share to trade.

I see fair value around 465p and will likely be back in if it falls below that level.

Good luck to continuing holders, in the meantime

[sf5] 19/11/2019 10:25

Agree - nice steady-as-she-goes update. Navigating headwinds well. Adam acquisition sounds positive.

[tomyumgoong] 19/11/2019 10:04

Good set of final results this morning I think! Figures beating Edison guidance in revenue and profit and basic eps of 20.4 up from 18.4 last year!

[tomyumgoong] 27/9/2019 13:42

Another article showing how Focusrite's technology is being used for broadcast! :https://www.google.co.uk/amp/s/www.psneurope.com/broadcast/spiritland-productions-broadcast-van-focusrite-rednet/amp

[tomyumgoong] 13/9/2019 14:07

https://www.investorschronicle.co.uk/tips-ideas/2019/09/12/focusrite-to-beat-expectations/Investors Chronicle says Focusrite a buy at 539p

[sf5] 12/9/2019 06:42

Yes, nice update and strong cash generation allowing for the Adam acquisition.

[tomyumgoong] 12/9/2019 06:36

Another great trading update! .....Really like this company! Quality products, quality, feet on the ground management, cash in the bank! Onwards and upwards!

[effortless cool] 12/9/2019 06:27

It's nice to time a purchase well, for a change.

[effortless cool] 15/8/2019 12:40

I can't see that recent falls are warranted, so have bought back in today with 25,000 at 440p.

I'm buying back in at only just below the levels that I sold at last year but, in the meantime, interim results have come in that were materially better than I had been projecting.

[tudes100] 18/7/2019 23:58

Apologies, at Dec 18 Sanford Deland had a 5.65% position, just had update from Co saying that position is now 8.7%.

[tudes100] 18/7/2019 00:36

Not much to say Tom, decent addition by the look of it & pleased they seem to be looking to use cash built up.
Was watching PI World Keith Ashworth Lord interview & he mentioned TUNE being one of their new additions in the last 12 mths. According to the comapny website they have a 7.8% position but data is only to Dec 18.
Great shareholder to have on the register, recognition of quality & usually very patient, ie looking to hold long term.

[tomyumgoong] 17/7/2019 14:57

Can't believe nobody's commented on yesterday's acquisition! Looks like a quality company with quality monitors......just check out the reviews on YouTube!

[alter ego] 05/6/2019 07:55

AGM statement extract:

"In our Q1 trading update released in April we reported that revenue during the first three months of the current year increased by 14%, 4% of which was through organic means. The business has continued to achieve organic growth in the subsequent two-month period.

The Directors remain confident about the future; we expect our underlying performance to deliver another year of solid progress and we look forward to providing our next Trading Update for Q2 in early July. Overall our trading is in line with market expectations."

[glavey] 04/6/2019 21:57

Focusrite share price too expensive at these levels?
9:46am by Jack Brumby

"Focusrite is a small cap stock in the Phones & Handheld Devices industry."

That should tell everyone the quality of the article and the competence of Jack Brumby.

Doesn't say a lot for Stockopedia either.

[battlebus2] 04/6/2019 12:26

New highs ✅✅✅;

[martywidget] 02/5/2019 15:42

Executive interview – Focusrite
Published on 1 May 2019
In this video Tim Carroll, CEO of Focusrite, the global music and audio products company supplying hardware and software products used by professional and amateur musicians, discusses how the company has continued to grow earnings and cash over the first half of the year against record prior-year comparatives. He also explains the importance of innovation and R&D for Focusrite as a market leader and disruptor, alongside opportunities for further geographical expansion and use of the company’s substantial cash balance for strategic acquisitions.