Focusrite (TUNE) Transition Period summary

Executive summary

• Delivered resilient performance in line with expectations, overcoming challenges such as channel destocking and market consolidation, and positioning for future growth.

• Completed a significant investment cycle, including technology, R&D, and global infrastructure.

• Strengthened product portfolio and growing direct-to-consumer presence support ongoing momentum.

Financial highlights

• Revenue grew 2.7% year-over-year (OCC), with gross margin up 1.7 percentage points to 45.1%.

• Adjusted EBITDA reached £24.7m (+5.7%), with margin improving to 15.0%.

• Adjusted diluted EPS at 15.6p; net debt reduced by £9.3m to £8.6m.

• Free cash flow of £12.0m, with cash conversion over 50% of EBITDA.

• Final dividend increased to 6.74p for the period.

Outlook and guidance

• Trading in the first quarter of the new year is ahead of the prior year, with healthy demand across both divisions.

• Board expectations for FY27 remain unchanged, with improving operational momentum and margin progression.

• Continued focus on operational excellence, cost control, and leveraging recent investments.