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 enable the high-quality production of music.

Y/E Aug Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 54.3 10.2 7.7 11.8 37.1 N/A
2017A 66.1 13.1 9.5 14.8 29.6 N/A
2018E 74.6 14.6 10.4 15.9 27.5 N/A
2019E 79.9 15.4 11.1 16.8 26.0 N/A

Last updated on 09/03/2018

Investment summary

Focusrite’s trading statement indicates constant currency sales growth of over 25%, even better sales growth than the headline 19%, because of the US dollar’s depreciation. The background is a continuation of widespread demand for the full product range across all the main geographies. Although trading patterns may be shifting to the first half, we are upgrading our forecasts by c 5%.

Last updated on 09/03/2018

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 50% share of the mass interface market, c 10% of the semi-professional Thunderbolt market and 2% of the commercial market, with Novation, maker of the Launchpad, also ranking highly in its markets.

Last updated on 02/03/2018

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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