Profits down but revenue steady at audio firm Focusrite

Music and audio products company Focusrite expects earnings for the financial year 2022 to be below expectations due to increased costs and investment.

The worldwide scarcity of semiconductors and high freight costs have driven up costs for the High-Wycombe-based firm, which supplies hardware and software used by professional and amateur musicians and the entertainment industry.

“These have created downward pressure on gross margins, partially offset by price increases which we expect to continue into the next financial year,” said the firm.

The company said it expected revenues for the year to be approximately £180 million, up from £173.9 million in the prior year.

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“The Group continues to see increased demand for solutions that enable the creation and playback of audio content for music, post-production, podcasting, and streaming compared to pre-pandemic levels,” said CEO Tim Carroll.

“We now have nine established brands covering a much broader customer and geographic footprint than in previous years.

“Overall, the Group’s revenue is now running at about twice the level it was in the last financial year prior to the pandemic.

“Current customer registrations remain robust. We are optimistic about our future prospects, but mindful of the current global economic and political challenges and uncertainties, as well as the ongoing cost pressures in the supply chain.”

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