Focusrite reports resilient fiscal 2023 despite profit drop

Buckinghamshire-based audio product specialist Focusrite said it had delivered a "resilient" performance in its full-year results to end-August despite challenging macroeconomic conditions.

The High Wycombe-based company comprises broadly two divisions - Content Creation, which makes and distributes audio content, and Audio Reproduction, which provides solutions to do just that.

READ MORE: Buckinghamshire’s Focusrite reports decreased revenue in Half Year 2023

In the 12 months to August 30, the group posted adjusted operating profit of £30.4 million, down 12.4% compared to fiscal 2022, on revenue of £178.5 million, down 2.9% on the previous year.

In a statement, CEO Tim Carroll CEO said the company had achieved revenue and profit figures, which were "in line with market expectations".

"With our existing portfolio, planned product launches throughout the coming year, streamlined go-to-market strategies, and shared back-office support structures, we are well-positioned to embrace the opportunities and challenges the new year presents," he said.

"Current market conditions for our Content Creation division remain difficult and our revenue year to date has been impacted by a degree of sales channel de-stocking," he added.

"However, underlying demand for our products, as evidenced by customer registrations, remains satisfactory. Performance in our Audio Reproduction division remains strong."

The company boss also noted that Focusrite had built its inventory back to "more normalised" levels and had robust plans for future component supplies.

"With key new products launched towards the end of FY23 and more introductions planned for the year ahead, we remain confident in the organic growth potential of existing brands," he said.

"Additionally, with the benefit of our cash generation, the group has demonstrated its ability to execute on our proactive M&A strategy, carefully considering acquisitions that not only enhance earnings but also expand our market potential, increase our R&D capabilities, and contribute both scale and dynamism to our business."

AIM-listed Focusrite has offices in four continents and a global customer base with a distribution network covering around 240 territories.

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