Growth in revenue and cash is strong after four months of trading. Focusrite PLC (LON:TUNE) continues to build on its leadership positions in international markets, and to benefit from its c 85% non-UK market exposure. Further growth in cash is also encouraging as it suggests good profit conversion despite expected cost increases. If these independent growth trends continue to the half-year, we would see upside risk to our forecasts.
Growth continues strongly
In November management reported that revenue and cash had grown “further” since the August year end, with “strong” market acceptance of the expanding portfolio. Now, the growth itself is described as “strong”, and it has moreover continued through November and December. The word ‘strong’ (which was also used about FY17’s constant currency growth of 13%) indicates a firming position, as well as the fact that the four months to December are a more significant period.
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