Focusrite (AIM:TUNE), the AIM-listed global music and audio products group, said it expects to deliver 3% revenue growth alongside improved underlying operating profit and strong cash generation for the six months to 31 August.
Gross margins improved on continued pricing discipline and active supply chain management, with the period also benefiting from approximately £2.3 million of US tariff refunds relating to prior periods, which will be treated as an adjusting item in the interim results.
Content Creation delivered 4% revenue growth across all regions, while Audio Reproduction orders rose 12% year-on-year with the order book 9% higher than a year earlier in August. Audio Reproduction revenue nonetheless fell 4%, as strong US growth was offset by weakness in China.
Net debt is expected to have fallen sharply to approximately £2 million at 31 August, down from £8.6 million at 28 February, reflecting strong cash generation and the tariff refund receipt.
"The breadth and strength of our portfolio, together with continued pricing and cost discipline, is translating into improved profitability and a significantly strengthened balance sheet," said chief executive Tim Carroll.
The board's expectations for the full year to 28 February 2027 remain unchanged, with sell-side forecasts ranging from £170.1 million to £173.7 million in revenue. Focusrite expects to publish interim results in early November.
News Intelligence what this means for the company
Focusrite reported 3% revenue growth in H1 with improved margins and profitability, driven by pricing discipline and supply chain management, plus a £2.3 million US tariff refund. Net debt fell sharply to £2 million from £8.6 million, and the board reaffirmed its full-year outlook—a confidence signal, but one anchored to unchanged guidance rather than an upgrade.
The H1 results show operational momentum (Content Creation +4%, Audio Reproduction orders +12%) and a materially strengthened balance sheet, but the company's full-year expectations remain unchanged. The tariff refund is a one-off benefit; underlying cash generation and margin improvement are the durable drivers. Interim results in early November will test whether H2 sustains this trajectory.
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