27th Nov 2024 11:55
(Alliance News) - Focusrite PLC on Wednesday reported a sharp decline in annual pretax profit, citing soft demand and challenging market conditions.
The High Wycombe, England-based software designer said pretax profit for the year ended August 31 declined by 89% to GBP2.5 million from GBP22.7 million at the end of the previous financial year.
Revenue also saw a decline during the period, albeit a less steep one, falling 11% to GBP158.5 million from GBP178.5 million the year prior. The figure remains above the GBP157.0 million prediction the company issued in August.
Focusrite declared total dividend per share at 6.60 pence, unchanged from total dividend at the end of financial 2023. The company proposed a final dividend for financial 2024 of 4.5p per share, also flat when compared with the year prior.
The firm's Chief Executive Officer Tim Caroll pointed to various stumbling blocks, including "significant global economic and political challenges, as well as ongoing cost pressures, particularly in logistics and the supply chain".
Caroll commented: "We experienced softness in the Content Creation market, primarily due to inflation impacting consumer confidence and channel de-stocking". The CEO maintained that new product launches in financial 2024 were "proactive" and were expected to "drive future growth when market conditions improve".
The Focusrite executive said the first three months of financial 2025 trading had been in line with expectations, with the company remaining optimistic about its prospects.
Focusrite shares were up 0.6% at 260.50 pence each on Wednesday morning in London.
By Holly Munks, Alliance News reporter
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