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magazineFocusrite’s growth story is music to our ears
(TUNE:AIM) 427.5p
Gain to date: 32%
Original entry point: 324p, 27 Nov 2017
Global music and audio products innovator Focusrite (TUNE:AIM) has generated a 32% gain on our Great Idea. We’re as excited as ever about its growth prospects following better-than- expected full year results (20 Nov).
Sales grew 13.7% to £75.1m in the year to August as Focusrite experienced growth in all major geographic regions and in both the Focusrite and Novation ranges, while also demonstrating an impressive expansion of gross margin.
Cash-generative Focusrite is also increasing the dividend by 22% to 3.3p and with year-end net cash of £22.8m, has the funds to invest in a growing new product pipeline and scout for earning‑accretive acquisitions.
Panmure Gordon analyst Andrew Blain has a 500p price target for Focusrite, forecasting growth in pre-tax profit from £14.5m to
£15.3m this year.
‘Solid trading momentum and a raft of initiatives to further drive the performance means Focusrite stands out as a rare UK consumer business confident in its outlook for the year ahead’, he says.
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