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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 39.1 N/A
2017A 66.1 13.1 9.5 14.8 31.2 N/A
2018E 75.4 15.1 10.8 16.3 28.3 N/A
2019E 80.0 15.7 11.5 17.0 27.1 N/A

Last updated on 20/06/2018

Investment summary

Focusrite delivered an outstanding first half with substantial growth on all metrics, across all territories and in both product brand groups. Constant currency revenue growth of 26% was double that of FY17 although, after an unprecedented pre-Christmas period, the shape of trading may be becoming more seasonal. EBITDA grew by 30.0% y-o-y and operating profit by 36.3%. Net cash has grown since year end by £5.6m to £19.7m. In April, we again upgraded our FY18e PBT by 5%.

Last updated on 29/06/2018

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 29/06/2018

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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