Focusrite (LON: TUNE), the audio interface and live sound group, reported a 14.7% rise in adjusted operating profit to £11.1m for the six months to the 31st of August. Revenue grew only 2.7% to £90.3m, so the profit growth came mainly from margin rather than sales.
Gross margin widened 1.7 points to 46.6%, the third half-year of improvement in a row, and the adjusted operating margin reached 12.3% against 11.0%. Price increases and cost reductions added 1.4 points of the gross margin gain. Adjusted figures exclude amortisation of acquired intangibles and one-off items.
Reported operating profit rose 67.6% and basic earnings per share 106.5%, but both include a £2.4m refund of US tariffs, treated as an adjusting item, so the adjusted figures are the like-for-like guide.
| Measure | Six months to 31 Aug 2026 | Prior year (restated) | Change |
|---|---|---|---|
| Revenue (£m) | 90.3 | 88.0 | 2.7% |
| Adjusted operating profit (£m) | 11.1 | 9.7 | 14.7% |
| Adjusted diluted EPS (p) | 12.8 | 10.2 | 25.5% |
| Net debt (£m) | 1.5 | 10.8 | Down £9.3m |
| Interim dividend per share (p) | 2.16 | 2.10 | 3.0% |
Net debt fell to £1.5m from £10.8m a year earlier, helped by working capital and £2.8m of tariff refunds received.
Content Creation, which sells interfaces and instruments to recording musicians and producers, grew revenue 5.2% with gross margin up to 48.3%. Audio Reproduction, the live and installed sound arm, saw revenue fall 3.9%, with Asia-Pacific down 24.0% and the Americas up 13.5%. Orders rose 12% and its book-to-bill ratio, orders against sales billed, was 1.09.
Chief executive Tim Carroll said trading since the period end had been encouraging, but flagged the shape of the year:
As previously indicated revenue and profitability are expected to be more heavily weighted towards the first half, whilst noting this impact our performance to date gives us confidence in meeting market expectations for the full year.
Tim Carroll, Chief Executive Officer, Focusrite
The first product using Focusrite’s own audio chip is due to ship in early 2027. The company holds a Capital Markets Event for institutional investors and analysts on the 25th of November.