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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Focusrite (TUNE:AIM) 924p
Gain to date: 34.5%
Original entry point: Buy at 687p, 23 July 2020
Our faith in the audio tech firm continues to be rewarded with the company’s full-year results providing the latest catalyst.
It posted a 46% drop in profit for the 12 months to 31 August after it wrote down the value of its Martin Audio business, due to the pandemic hurting the live gig scene.
The company, however, raised its dividend by 10% to 4.2p per share while touting a stronger underlying operating performance.
In response to the numbers Peel Hunt upgraded its earnings forecasts by 3% for the August 2021 and 2022 financial years and commented: ‘The demand for Focusrite’s products has been unprecedented as Covid-19 saw musicians – professional and amateur – enjoying their passion at home.
‘However, its products have also expanded into podcasting, used with services such as Zoom, and for film/TV dubbing while actors are at home. Focusrite also launched 11 new products since the start of lockdown: the transition to work from home for the group “hardly missed a beat”.’
SHARES SAYS: Expansion into new products and markets provide long-term growth drivers for Focusrite. Keep buying the shares.
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The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.