After sequential YoY declines, strong revenue growth has now delivered an inflection in the profit trajectory, helped by normalised stock across key channels and margin recovery, especially in Focusrite. Costs/inflation remain a pivotal issue, though, so 2 new initiatives should be well received, including a recent restructuring and a review of R&D productivity (ongoing). Actions to mitigate tariffs have also been effective to date and, with recent trading in line, the forecast outlook is unchanged. Even modest future growth can deliver geared EPS/FCF CAGRs that, despite bouncing from recent lows, aren’t yet fully priced in. We remain at Buy.
