Shares in global music and audio products company Focusrite (TUNE:AIM) dropped 2.6% to £15.42 on Friday after the company flagged continuing supply constraints and higher freight and shipping costs.
The company released a brief trading statement ahead of its annual general meeting saying demand had remained strong in first quarter to the end of November despite tough year-on-year comparatives and revenues were in line with management expectations.
However, the company sounded a note of caution after experiencing continued supply constraints due to global component shortages and ‘significantly higher’ freight and shipping costs than normal, albeit it said it was managing the challenges.
The comments are in line with those in the full year results in November, when the firm said it expected increased operating costs in 2022 reflecting tightness in supply chains, a resumption of travel and an intention to increase investment to fuel future growth.
Meanwhile, recent acquisitions were said to be bedding down well and ‘numerous’ cross-business initiatives are expected to have a positive effect in the latter part of the 2022 and into 2023.
Acquisitions are designed to address adjacent market segments within the market verticals the company already serves. These include music recording and creation, live performance, audio post-production for film and streaming content, media education and audio networking.
