Shares in AIM-listed music products firm Focusrite (LON:TUNE) climbed 11.16% to 817p (as of 15:50 BST) after the firm reported that revenues, profits, and cash flow had all grown substantially over the year ended 31st August. Revenues for the period are expected to be ahead of forecasts and around 50% above the previous year. Gross margins have also improved and EBITDA is also set to beat expectations.
Chief Executive Tim Carroll commented: “The Group continues to see increased demand for solutions that enable the creation and playback of audio content for music, podcasting and streaming. Much of the Focusrite Audio Engineering and ADAM Audio portfolios cater to these workflows and consequently have experienced continued high demand over and above our growth levels prior to the initial lock-downs. The demand for Martin Audio products, especially for live sound events such as tours, festivals and theatres, has been negatively impacted since March 2020 due to COVID-19 restrictions. However, we are now seeing some early signs of recovery for installed sound solutions in many regions for clubs, houses of worship and corporate audio / visual solutions.
“We are very pleased to have repaid the net debt, required to fund the acquisition of Martin Audio, so quickly. This has been achieved in part by reductions in inventories of finished goods due to high demand. We are optimistic about our future growth prospects as we continue to execute our strategy of growing our core customer base, focusing on customer value and expanding our business, both organically and through further acquisitions“.