Focusrite results hit a flat note with investors

AIM-listed audio equipment manufacturer Focusrite (LON:TUNE) has dropped by 10.43% to 529.36p (as of 12:30 GMT) as it warned of slower trading heading into the first quarter of the new year. The company said that the year ended 31st August had benefited from price increases in the US as well as the launch of new products in the Scarlett range. Revenues for the year were up by 12.7% with a 7.5% rise in statutory operating profits.

CEO Tim Carroll said: “I am very proud to present another set of positive results, following an extremely busy year for the Group, with both top line revenue and profit growing and the successful completion of our first major acquisition. We have remained focused on executing our growth strategy whilst ensuring the Group was taking the correct and necessary measures to mitigate any potential disruption from the numerous macro-economic issues at hand.

“This positive performance has been driven by a number of factors. Most notably new product introductions this year, including our third generation of Scarlett audio interfaces, which have resonated well with customers and provided an incremental lift. We are also witnessing positive results from many of our IT-based initiatives that were implemented and funded over the past few years. These include enhanced websites, modernised social media demand generation, localised online experiences and new technologies focused on simplifying the ‘out of box’ experience. All of these have resulted in increased customer and sales channel satisfaction illustrated by our top net promoter scores (‘NPS’) for individual products.

“[…]There is much change in the trading environment, causing risk but also providing many opportunities. Changes in technology and new customer requirements can emerge quickly; macroeconomic and political factors affect our end customers and distributors alike and competitive pressures remain. We have shown over the course of this past year that we are capable of navigating these risk factors, reacting in a methodical and measured way and ultimately protecting our revenue and gross margin; all the while staying focused on the execution of our growth strategy. I am very pleased with our FY19 results, as a continuation of our impressive and consistent growth story. We look forward to another productive year with many new products and solutions coming to fruition“.