Focusrite (TUNE)

Business description

Focusrite is a global music and audio products group supplying hardware and software products used by professional and amateur musicians, which enables the high-quality production of music.

Stock data

Market cap.£129.2m
Last close222.50p
High / Low (52 weeks)233.5p / 138.0p
Stock market listingLN
Forecast net debt (£m)0
Forecast gearing ratio (%)0
TeamConsumer
SectorConsumer Support Services

Price performance

%1m3m12m
Actual(2.8)6.237.8
Relative *(3)3.118.6

* % Relative to local index

Other companies in sector Show

Y/E Aug Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 48.0 9.3 7.2 10.5 21.2 N/A
2016A 54.3 10.2 7.7 11.8 18.9 N/A
2017E 62.6 10.9 8.0 12.1 18.4 N/A
2018E 68.3 12.0 8.8 13.3 16.7 N/A

Last updated on 24/03/2017

Investment summary

Focusrite has updated on first-half trading. Revenue is up by 23% at £32m, with growth across all regions, led by the US. This includes underlying constant currency growth of 12%, which compares favourably with our assumption of 8% for FY17. The strengthening balance sheet has also become a theme this year, confirmed by the end-February cash balance of £9.4m. We are leaving our forecasts unchanged ahead of the interim results on 3 May. However, we believe the risk to market forecasts is now on the upside.

Last updated on 04/04/2017

Industry outlook

Focusrite’s products connect with a home-based leisure movement that is outpacing overall consumer expenditure. The global music instrument and pro audio wholesale market was £2.7bn in 2013 (source MTM) but is highly fragmented. At IPO in 2014, management estimated its addressable market at c £450m. Currently, it estimates a 40% share of the mass interface market, 10% of the semi-professional Thunderbolt market and 2% of the commercial market, with Novation also ranking highly in its markets.

Last updated on 04/04/2017

Key management

Phil Dudderidge, Chairman
Tim Carroll, CEO
Jeremy Wilson , CFO

Company address

Windsor House
Turnpike Road
HP12 3FX
United Kingdom
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