We don't view any bad omens from an across-the-board 13 per cent hike in revenue, operating profit and earnings at Focusrite (TUNE). On the contrary, this represents an impressive set of results for chief executive Dave Froker to mark his swansong. The boss, who led the company through the 2014 IPO, will move back to America at the end of the year. Although the new leader is yet to be officially announced, chairman Phil Dudderidge reassured that they are "familiar with the company" and will probably start in January.
For Mr Dudderidge this year's highlight was the launch of the second generation of the Scarlett Range - the world's best-selling sub-$500 recording product. The new range has been well received and Scarlett products contributed 43 per cent of group revenue in the year. Overall, sales from the Focusrite division - which includes Scarlett, Clarett and Red product ranges - grew by a fifth to £37.6m.
All three operating regions continue to demonstrate impressive growth, particularly Asia where the Novation digital products are very popular. In the US sales rose 16 per cent and the launch of a new e-commerce site there is expected to enhance margins.
With results for the year to August 2016 better than expected, broker Panmure Gordon has upgraded forecasts and now expects adjusted pre-tax profit of £10.4m giving EPS of 12.4p for FY2017 (from £9.7m and 11.4p in FY2016).
FOCUSRITE (TUNE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 181p | MARKET VALUE: | £97m | |
| TOUCH: | 177-185p | 12-MONTH HIGH: | 190p | LOW: 138p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 45p* | NET CASH: | £5.6m | |
| Year to 31 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 25.3 | 3.0 | na | na |
| 2013 | 36.1 | 5.2 | na | na |
| 2014 | 41.0 | 5.8 | 10.3 | na |
| 2015† | 48.0 | 6.5 | 10.4 | 1.8 |
| 2016 | 54.3 | 7.1 | 11.8 | 1.95 |
| % change | +13 | +10 | +13 | +8 |
Ex-div: 1 Dec Payment: 18 Jan *Includes intangible assets of £4.8m, or 8.9p a share †Focusrite listed in December 2014 | ||||
