StockMarketWire.com - Music products group Focusrite upgraded its annual earnings and sales guidance, though it added it was facing supply constraints due to the semi-conductor shortage and higher freight rates.

Revenue for the year through August was expected to rise to around £173 million, up from £130 million year-on-year and ahead of market expectations, the company said.

Earnings before interest, tax, depreciation and amortisation also were expected to beat market expectations, it added.

Gross margins havd been maintained as the company experienced a substantial decrease in travel and trade shows due to the pandemic -- savings it doesn't expected to be recurring.

Focusrite said it was continuing to experience supply constraints due to a global shortage of semi-conductors and other components.

Freight and shipping costs, it added, were 'significantly higher' than normal, principally caused by the effects of Covid-19.

'The group continues to see increased demand for solutions that enable the creation and playback of audio content for music, postproduction, podcasting, and streaming,' chief executive Tim Carroll said.

'We now have eight established brands covering a much broader customer and geographic footprint than in previous years; and the acquisitions we have made are integrating well and delivering on their forecast plans.'

'We remain optimistic about our future prospects as we continue to execute on our strategy of growing our core customer base and focusing on customer value.'

'but in tandem we remain extremely vigilant of the challenges presented by the current disruption to the supply chain and the global shortage of semi-conductors and other components as well as any further impact from the pandemic.'


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