Focusrite Plc (£TUNE) - A Valuation on 20th November 2020

A growing audio equipment and software business with a desirable ecosystem of products. Will they become the “Apple of music”, or are they approaching the final act in their growth story?

🏢 The Company - Focusrite Plc (£TUNE) 🏢

Focusrite Plc (£TUNE) designs and produces audio equipment and software. The company owns 6 Main brands: Focusrite, Focusrite Pro, Novation, Ampify, ADAM & Martin that cover the entire spectrum of musician-tech, from novice to professional. 

The company is listed and run in the UK, but generates most of its revenue in North America (39%) and Europe (26%), with the rest of the world (ROW) making up the remainder (35%). 

Since going public at the end of 2014, the business has grown rapidly. This ascent has been capped-off by two further acquisitions last year (ADAM & Martin) and underlying growth of 21%. The company’s respected and recognised brands and ecosystem of complementary products allowed them to grow pricing while increasing scale reduced costs. Our synthetic credit-rating for the firm is AAA and they have virtually no debt (£16.2M inc. leases, or 2.9% of enterprise value). 

Through 2020, pandemic lockdowns across the world strengthened dem…