Focusrite Share Discussion Threads

[rp19] 20/2/2022 11:17

Trading update due during March according to company's website.

[sf5] 17/2/2022 19:38

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!

[km18] 17/2/2022 18:44

...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

[alphabeta4] 10/12/2021 13:54

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.

[rp19] 20/11/2021 10:44

Excellent results. Is anyone aware of any broker estimates for FY22 and beyond?

[martywidget] 20/11/2021 05:55

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.

[alphabeta4] 18/11/2021 12:16

'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.

[ianhammond] 18/11/2021 09:38

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

[alphabeta4] 17/11/2021 14:44

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?

[ironstorm] 16/11/2021 08:15

Wow phenomenal. Like the bit about live music in 22/23.

And repayment of Sequential debt in just 4 months.

Onwards

Upwards.

[tomyumgoong] 16/11/2021 08:15

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!

[sf5] 16/11/2021 07:54

Yes, even Martin seems to be back on form. Little mention of supply chain issues. It's not really the same 'box shifting' market as G4M.

[alter ego] 16/11/2021 07:29

Wow. Superb results.

[coppertrader] 13/10/2021 18:56

potentially the change in broker is responsible for the fall in share price if the old broker is not happy about being replaced and held a bit of stock?

[alter ego] 13/10/2021 08:27

another trading update from G4M today mentions:

"- Total sales of £64.7m down 8% when compared to the exceptionally strong FY21 H1

- Robust UK sales, in line with FY21 H1

- European sales down 16% due to post-Brexit challenges

[alter ego] 12/10/2021 13:51

Think there may be some read across from trading update by G4M early September where they said:

European sales have remained behind last year, primarily as a result of post-Brexit cross border shipping challenges creating a less competitive delivery proposition in some of our European markets.

[rp19] 12/10/2021 13:43

I hold and am likely to add if it keeps falling. According to Digital Look, FY 21 EPS forecasts are for 53.34p per share (I think they will be closer to 60p). The FY 22 EPS forecasts are much reduced at 38.69p and this may be driving the recent sell-off. I don't have access to any research but the reduced forecasts may be due to margin pressures, semi-conductor shortage (for everyone), distribution costs and recommencement of travel and associated costs at trade shows. I'm hopeful that the FY 22 performance will be a fair bit better than the above forecasts. Results are due late November, so all eyes on them.

[thompsonminor] 12/10/2021 10:21

Struggling to understand why this continues to drop. The 14 Sept T/A was largely posistive, with revenues up £43m, Sequential acquisition now bedded in and contributing, free cash pretty much the same as previous year (despite paying £15m for Sequential), orders continuing to flow/flood in. What's not to like? Like any business operating in the tech field, the worldwide shortgae of chips is a concern, and the transport costs are ratcheting up, but these are short-term headwinds not long-term systemic failures within the business. I will continue to hold, and wait for the November F/Y results and dividend announcement.

[liquidtyler] 16/9/2021 18:03

Was anyone else a bit disappointed by the recent YE trading update?
2nd half year revenue is down quite a lot from the first half. I don't like the narrative of "Ahead of market expectations"; it shouldn't matter what the market expects rather how the management expects as they are operating the business.
The jury is still out in my mind on the acquisitions and what impact these will have on the economics of the firm in the long run. Focusrite interfaces are the main claim to fame and this works so well, seems a bit odd going into music events which is a completely different ball game really.

[tongosti] 14/9/2021 09:40

Like I said a few days back price proceeds fundamentals.

[ironstorm] 14/9/2021 09:39

Fantastic statement - love that Sequential is doing great and the debt incurred already paid off. Next acquisition must be in the works to drive next years performance.

Good work.

[alter ego] 14/9/2021 08:55

"Focusrite plc (AIM: TUNE), the global music and audio products company supplying hardware and software used by professional and amateur musicians and the entertainment industry, is pleased to update the market on a positive trading year in which revenue, profits and cash flow have all grown substantially."

trading update

[coppertrader] 27/8/2021 13:43

an ideas what is driving the recent rise?