Focusrite (TUNE)

Focusrite TUNE Logo

A music and audio products company supplying hardware and software products used by professional and amateur musicians, engaged in the development, manufacture and marketing of professional audio and electronic music products.

21-Nov-2017 – 302.5p – £179.5m – PER 20.7

Final Results For The Year To End August 2017 – Revenue up 13% (CC) to £66.1m (£54.3m last time), PBT up 33.5% to £9.5m (£7.1m last time), Adjusted EPS up 29.8% to 14.8p, Net Cash of £14.2m (£5.6m last time) and Dividends for the year are up 38% to 2.7p.

Although this update looks like just above expectations, there’s a lot to like here.

10-Jan-2018 – 335p – £198.2m – PER 21.8

AGM Statement And Trading Update – Just the one (well written) paragraph “In November 2017, at the time of our final results announcement, we updated the market that our revenue and cash had both grown further since the year end.  I am pleased to confirm that this strong growth has continued in November and December”.

Still liking this, I just feel it’s too expensive. Adding it to my Watchlist, 260p.

Subsequently revised Watchlist price, 280p.

9-Mar-2018 – 354.16p – £205.8m – PER 22.5

Trading Update For First Half Of The Year Ending August 2018 – Revenue for H1 expected to be over £38m, up from £32.0m LFL, a 25% increase on a constant currency basis. Net cash £19.7m, up from £14.2m on 31 August 2017 and £9.4m on 28 February 2017. “Confident for the current financial year and beyond”.

Nice update, it’s on my Watchlist at 260p but might even consider paying up here. Just a pity there was no Profit update in the latest update.

Subsequent note: I bought in here today.

24-Apr-2018 – 410p – £238.3m – PER 24.9

Interim Results For The 6 Months To End February 2018 – Revenue up by 21.2% (26% at constant currency1) to £38.8m (HY17: £32.0m), PBT up by 26.8% to £5.8m (HY17: £4.6m), Diluted EPS up by 27.1% to 8.9p (HY17: 7.0p), Net Cash of £19.7m (FY17: £14.2m) and the Interim dividend is 1p, up 33.3% from 0.75p. ”Confident about the outlook for the rest of the year and beyond: future product plans are taking shape, the geographic expansion continues and the strategy developments are bearing fruit”.

I’m currently Long here but almost 20% of the High (earlier this month). Will keep an eye on it this morning as the market may have been expecting more here – If so, seems that some time early April some were expecting these numbers!

Subsequent Note: Sold out here on 19-Jul-2018, main reason based on forecasts. On a PER of 27.0 the EPS growth rates were +38.9% (2016A), +28.8% (2017A), +10.0% (2018E) and +5.52% (2019E), Revenue growth for 2018 and 2019 was forecast at about <10% each year. I still like the love the ROCE and Operating Margin here but the EPS forecasts reflected signs of a decent sized deceleration. I am now Neutral here.

18-Sep-2018 – 447.5p – £260.0m – PER 26.0

Trading Update For The 12 Months To End August 2018 – Revenue to be in-line (£75m) with Net Cash up from £14.2m to £22.8m – Mindful and cautious regarding macro-economic factors in the US and UkEurope.

I sold out here in July 2018 based on forecast EPS growth slow down ( to <10% per annum) – I remain Neutral.

20-Nov-2018 – 421.5p – £244.9m – PER 24.5

Results For The 12 Months To End August 2018 – Revenue up 13.7% (CC) to £75.1m, Adjusted Operating Profit up 22.6% with Adjusted Diluted EPS up 22.3% – The Total FY Dividend is up 22.2% and Net Cash stands at £22.8m (£14.2m last time).

Priced about right perhaps? I remain Neutral – Loads of Cash!

21-Dec-2018 – 472.5p – £274.6m – PER 26.2

AGM Statement And Trading Update – “When we announced our full year results on 20 November 2018, we commented that trading for the year to date was broadly similar to the prior year.  November 2018 was a strong month and our revenue for the financial year to date is now ahead of the comparative period last year”.

There’s still a lot to like here, the Net Cash, ROCE and Op Margin, for example. However, on a PER of 25+ for a company forecast for almost no EPS growth over the next 2 years, it’s not for me at present.

19-Mar-2019 – 517p – £300m – PER 28.5

Trading Update For H1 For The Financial Year Ending August 2019 – Revenue seems to be up a couple of percent with profits ahead of last year too. Net Cash is up from £22.8m to £26.2m.

I held here previously but sold out in July 2018. Sure, there’s still a lot to like, the Net Cash, ROCE and Op Margin, for example. However, on a PER of almost 30 for a company forecast for almost no EPS growth over the next 2 years, it’s not for me at present.

30-Apr-2019 – 517p – £300m – PER 28.5

Interim Results For The 6 Months To End February 2019 – Revenue up 4.1%, PBT up 22.6%, EPS up 23.6%, Net Cash at £26.2m and the Interim Dividend is up 20%.

Still lots to like here and these are impressive results but I do reckon it’s fairly valued here.

12-Sep-2019 – 498p – £289m – PER 26

Results For The 12 Months To End August 2019 – Revenue to be ahead of expectations at £84m, with margins maintained EBITDA to be ahead too, Net Cash to be £14.9m (£22.8m).

Looks like a 5% or so beat on forecast Revenue – Still a lot to like but not enough for me, will keep an eye out for updated Broker notes.

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