Focusrite PLC (LON:TUNE) said full-year sales will top market expectations after strong trading lifted revenue, profits and cash flow substantially.
The music and audio products group expects revenue for the year to August 31 to be ahead of consensus, which is £129mln, well above last year’s £84mln.
The growth was driven by acquisitions completed in 2019 as well as the core audio engineering business, while better margins are estimated to drive underlying earnings (EBITDA) ahead of forecasts.
At period-end the AIM-listed firm had £3mln in the bank, down from £19mln of net debt in February.
Focusrite plans to repay the £164,000 provided by the government under the furlough scheme.
Analysts at Peel Hunt raised the target price to 883p from 810p and noted there are “multiple exciting growth drivers” for the company, such as podcasts, further acquisitions and enhancing its cash profile via entertainment software.
Shares rose 11% to the tune of 819.4p early on Monday.