On a constant currency basis, Revenue has grown in H2 17 compared to H1 by 13%.
Companies: Focusrite PLC
Focusrite (AIM: TUNE), the Bucks. audio software and hardware company, has released a brief trading update today outlining its performance in the second half of FY17.
The update reveals that...
"In the second half of the financial year, revenue and profits have grown compared with the first half of the current year. This growth has been driven by a combination of factors including improved sales of product, some foreign exchange benefits and the continuing effective management of gross margin."
As a result of the strong H2, revenue for FY17 is expected to be c. £66m, up from £54.3 million in the same period last year. This is an increase of c. 13% on a constant currency basis.
Management has also increased working capital, with net cash up from £5.6 million on 31 August 2016 to £14.2m.
Tim Carroll, Chief Executive commented:
"The business has had a great year, with strong sales of both our Focusrite and Novation ranges. We continue to improve and expand our portfolio of solutions to address the needs of our broad customer range and we are pleased that our efforts have been rewarded with strong demand, market acceptance and financial success."
Panmure put out a note regarding the results, noting the trading update figures were ahead of their forecasts:
"This update indicates therefore that our FY17 EBITDA forecasts of £11.4m will be beaten by at least +8%...We also note net cash has risen to £14.2m, well ahead of our expectation of £10.4m, reflecting strong control of working capital, especially inventory. We raise our TP to 345p as our previous TP of 265p has now been comprehensively surpassed, reflecting strong investor demand."
They reiterated their BUY stance on the stock.
With a market cap of c £178m, Focusrite trade at a PE ratio of 22x versus the industry median of 14x. Shares in the Group have performed well in the past 12 months, with the current trading price of 308p almost twice that of the 162p price on the same day last year.
Revenue has a healthy CAGR of 21% for the four years to 2016, as does Net Profit and Reported EPS, both c. 23% for the same four year period.
The Company expects to issue its final results for the year ended 31 August 2017 late November.