Focusrite Plc (AIM:TUNE) Final Results for the Year Ended 31 August 2017

Focusrite Plc (AIM: TUNE), the global music and audio products company, announces Final Results for the year ended 31 August 2017.

Financial highlights

· Group revenue grew by 21.6% (constant currency3: 13%) to £66.1 million (FY16: £54.3 million)

· Adjusted EBITDA1 grew by 27.9% to £13.1 million (FY16: £10.2 million)

· Operating profit grew 32.6% to £9.5 million (FY16: £7.1 million)

· Profit before tax grew 33.5% to £9.5 million (FY16: £7.1 million)

· Basic earnings per share grew 30.5% to 15.4p (FY16: 11.8p)

· Adjusted2 diluted earnings per share grew 29.8% to 14.8p (FY16: 11.4p)

· Net cash of £14.2 million (FY16: £5.6 million)

· Final dividend of 1.95p recommended, resulting in 2.7p for the year, up 38% on prior year

Operational highlights

· Strong growth continued across both our major segments, Focusrite and Novation

· In Focusrite, Scarlett, Clarett and RedNet ranges all grew, leading to total segment revenue growth of 18.6%

· In Novation, the growth of Launchpad and Launchkey both accelerated resulting in segment revenue growth of 37.8%

· All major geographic regions grew, including the USA, our largest market, where revenue growth was 30.9% in the year

· Ten new products launched over the year with positive early industry and user feedback

· Continued investment in the Software division has generated continued growth – now three apps with approximately 550,000 active users

· e-commerce website now established and delivering products globally

1 Comprising of earnings adjusted for interest, taxation, depreciation, amortisation and non-underlying items (see page 14).
2 Adjusted for non-underlying items (see note 4).
3 Constant currency revenue growth is calculated by taking the sterling value of FY17 revenue; converting to FY16 annual average exchange rates and comparing with the reported revenue for FY16. In addition, all foreign exchange movements disclosed in revenue are excluded from both years.

Commenting on the results, Executive Chairman Phil Dudderidge said:

“I am delighted Focusrite Plc has delivered another strong year of growth. Our foundations as a company that has a history at the leading edge of music technology innovation, with an established, global customer base for its market-leading brands and a strong culture, make us well placed for further growth.”

Commenting on current trading, Chief Executive Officer Tim Carroll said:

“Since the year end, revenue and cash have both grown further. We continue to see strong market acceptance across our expanding portfolio and our new product pipeline continues to grow. Our solid momentum has continued into the current year and we continue to look forward with confidence.”

Availability of Annual Report and Notice of AGM

The Annual Report and Accounts for the financial year ended 31 August 2017 and notice of the Annual General Meeting (“AGM”) of Focusrite will be posted to shareholders by 5 December 2017 and will be available on Focusrite’s website at www.focusriteplc.com.

Dividend timetable

The final dividend is subject to shareholder approval, which is being sought at Focusrite’s Annual General Meeting to be held on 10 January 2018.

The timetable for the final dividend is as follows:

28 December 2017     Ex-dividend Date
29 December 2017     Record Date
10 January 2018     AGM to approve the recommended final dividend
19 January 2018     Dividend payment date

 

Full financial report and all accounting data can be found here.



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