Focusrite finds its groove
Focusrite (TUNE:AIM) 460p
Gain to date: 42%
Original entry point: 324p, 30 Nov 2017
Our positive call on global music and audio products group Focusrite (TUNE:AIM) is 42% in the money, buoyed by a positive first half trading update (9 Mar) flagging year-on-year growth in revenue, profits and cash and bumper Christmas demand.
Shares believes Focusrite can become a much bigger business. Developing and marketing hardware and software used by amateur musicians and audio professionals, we see significant upside to come from new product launches and further global audio production market share gains.
We’re also encouraged to see Focusrite has been added to the highly successful CFP SDL UK Buffettology Fund (GB00B300FJ66), validating our bullish stance.
In his April factsheet, manager Keith Ashworth-Lord flags Focusrite’s well established brands and managers ‘steeped in the industry’.
Ashworth-Lord, a highly picky manager who applies the methodology of ‘Business Perspective Investing’ championed by Buffett, says: ‘Compound annual growth over the last five years has been: sales 21.2%; operating profits 29.2%; EPS 22.8%.’