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.£182.1m
Last close313.50p
High / Low (52 weeks)318.5p / 138.0p
Stock market listingLN
Forecast net cash (£m)10.8
Forecast gearing ratio (%)N/A
TeamConsumer
SectorConsumer Support Services

Price performance

%1m3m12m
Actual7.039.3118.5
Relative *8.836.374.1

* % 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 29.9 N/A
2016A 54.3 10.2 7.7 11.8 26.6 N/A
2017E 64.9 11.6 8.5 12.8 24.5 N/A
2018E 70.5 12.6 9.2 13.9 22.6 N/A

Last updated on 17/05/2017

Investment summary

Interim results were strong. Revenue was up by 23.7%, with constant currency growth of 12% shared between both product groups. Adjusted pre-tax profit grew 55% and EPS by 52%. All regions are in revenue growth, led by the US, which grew 25% on a constant currency basis. EBITDA margin rose by 50bp to 19.1% year-on-year. Cash has been positively managed with net inflow of £3.8m against an outflow of £2.2m a year ago and closing net cash of £9.4m. We have upgraded our FY17 earnings forecast by 5%.

Last updated on 01/06/2017

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 01/06/2017

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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