WHITE BACKGROUND
COLOURED BACKGROUND
Focusrite Plc Annual Report and Accounts 2015
Making Music 
Easy to Make
Focusrite Plc 
Annual Report and Accounts 2015 Focusrite is a global 
music and audio products 
group supplying hardware 
and software products 
used by professional and 
amateur musicians, which 
enables the high quality 
production of music.
www.focusriteplc.com Financial Statements Governance Strategic Report 
01
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Highlights
By following our mission – to make music easy to make – 
we are successfully delivering transparent technology that 
liberates musicians, allowing them to create, produce, record 
and distribute their music. In turn, we are creating a profitable, 
international and sustainable AIM-quoted company.
Operational Highlights
 – Successful first year of trading since IPO and admission to AIM  
in December 2014
 – Revenue growth across both operating brands Focusrite and Novation 
and in all major territories
• USA growing by 29.3%, Europe, Middle East and Africa by 9.4%  
and Rest of World by 14.5%
 – 19 new products
• Entry into lucrative higher price range segments with Clarett 
Thunderbolt and Launchpad Pro
• Entry into new Live and Broadcast market segment with RedNet audio
 – Downloads of Novation’s Launchpad App for Apple’s iOS platform grew  
by 87%; and revenue grew by 185%
 – Rated, for the fourth consecutive year, as one of the ‘100 Best Small 
Companies to Work For’ by The Sunday Times
Financial Highlights
 – Group revenue up by 17.2% to £48.0 million (FY14: £41.0 million)
 – Adjusted EBITDA
1
 up by 13.1% to £9.3 million (FY14: £8.2 million)
 – Operating profit up by 10.7% to £6.3 million (FY14: £5.7 million) 
 – Basic earnings per share up by 1.6% to 10.4p (FY14: 10.3p)
 – Adjusted diluted earnings
2
 per share up by 4.3% to 10.5p (FY14: 10.1p)
 – Net cash up by 62.3% to £6.2 million (FY14: £3.8 million)
 – Maiden final dividend of 1.2p recommended, making 1.8p for the year
Strategic Report 01–29
Highlights 01
Focusrite at a Glance 02
Strategy 04
Chairman’s Statement 08
Chief Executive’s Statement 12
Financial Review 18
Principal Risks and Uncertainties 26
Corporate Social Responsibility 28
Governance 30–40
Corporate Governance Report 30
Board of Directors and  
Company Secretary 32
Directors’ Report 34
Directors’ Remuneration Report 36
Statement of Directors’ 
Responsibilities 40
Financial Statements 41–80
Independent Auditor’s Report  
to the Members of Focusrite Plc 41
Consolidated Income Statement 42
Consolidated Statement of 
Comprehensive Income 43
Consolidated Statement of  
Financial Position 44
Consolidated Statement of  
Changes in Equity 45
Consolidated Cash Flow  
Statement 46
Notes to the Financial  
Statements 47
Company Balance Sheet 74
Company Statement of  
Changes in Equity 75
Company Cash Flow Statement 76
Notes to the Company Accounts 77
Advisers IBC
1  Comprising of earnings adjusted for interest, taxation, depreciation, amortisation and non-underlying items.
2 Adjusted for non-underlying items. Product Evolution
Distribution: Global Coverage
Strategic Report
02
Focusrite Plc  
Annual Report and Accounts 2015
 
 Distribution  No Distribution
USA – 38%
EMEA – 45%
ROW – 17%
Revenue by sector
Focusrite at a Glance
The Group’s products are sold in around 160 territories and countries all over the world. 
Roughly one-third of our business is direct to retailers – online and bricks and mortar, one-
third is through distribution and the final third through a hybrid approach in the USA, where 
we provide marketing and sales support to drive demand. We sold products to 800,000 
end-users last year. Our suppliers are chiefly Asian and we use third-party logistics support. 
We employ around 160 employees in the UK, Germany and USA.
Focusrite Studio 
Console (1990)
Renowned as one of the 
finest sounding recording 
consoles in history, Focusrite 
created an exclusive, 
no-compromise console for 
the greatest recording 
studios in the world.
MBox (2001)
Digidesign (now Avid) 
selected Focusrite to 
develop their first mass-
market interface for the 
world’s best-selling digital 
audio recording system, 
Pro Tools.
Launchpad (2009)
Leading an entirely new 
approach to music 
performance, Launchpad 
shaped the way 
electronic music makers 
create, perform and 
produce today.
UltraNova (2010)
Novation synthesisers have 
been forming signature 
sounds for some of the 
world’s most influential 
artists since the early 90s. 
UltraNova is our most 
powerful synthesiser to date. Financial Statements Governance Strategic Report 
03
Fo c us ri t e P l c  
Annual Report and Accounts 2015
BLACK
WHITE
WHITE BACKGROUND
COLOURED BACKGROUND
1
/
3 
of Group Revenue
Bought by Focusrite in 2005, Novation now represents about a third of 
our revenue. Making new instruments and software for Electronic Music, 
the fastest-growing music creation segment, Novation is disrupting how 
music is made with its grid controllers, iOS software and new approaches 
to mobile music making.
2
/
3 
of Group Revenue
The Focusrite division has evolved from selling large studio consoles 25 years 
ago. It now provides a spectrum of products, from selling recording equipment 
to hobbyists all the way to providing audio networking systems to large 
organisations, such as the NBC and Microsoft. The Focusrite brand has 
always meant legendary sound quality; through innovation we now offer the 
best value too in a wide range of segments. We’ve become the number one 
producer of audio interfaces in the world.
Scarlett USB Interfaces 
(2011)
Scarlett 2i2 is today’s 
best-selling way to get 
quality sound into and out 
of a computer, thanks to a 
focus on sound quality, 
build quality, reliability and 
unparalleled ease of use.
RedNet (2012)
Revolutionising the way 
large-scale studio-quality 
audio is captured and 
transported in applications 
as varied as live concert 
broadcast, education and 
theme parks, using standard 
Cat 5e infrastructure.
Launchpad App (2013)
With over three million 
downloads worldwide, 
Novation boasts one of the 
leading platforms for 
creating, remixing and 
simply having fun with 
electronic music on the 
iOS platform.
Clarett (2015)
With the advent of 
Thunderbolt technology, 
Clarett sets a new 
benchmark for sound 
quality, ease of use and 
speed, only further 
cementing Focusrite’s 
domination of the audio 
interface market. Strategic Report
04
Focusrite Plc  
Annual Report and Accounts 2015
We’ve grown quickly while we’ve invested 
heavily in R&D to turn out innovative, 
high-quality and attractive products for 
musicians and audio professionals. We  
spend 7% of revenue on product development 
and seek to achieve about a third of our 
revenue from products launched within the  
last year. The result: in FY15 we launched  
 19 new products.
Innovate
Music making is going through a profound 
time of change: it’s performed, recorded  
and distributed in new ways. Focusrite is  
at the forefront of these changes: creating 
new instruments, disrupting how music is 
recorded, and helping musicians find new 
paths to listeners.
Disrupt
Strategy
Focusrite’s four-pronged strategy relies on our strengths, understands customers, foresees 
impending technology and differentiates us from our competitors. Financial Statements Governance Strategic Report 
05
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Focusrite’s addressable market currently 
represents only 16% of the larger market for 
musical instruments and pro audio products. 
We are actively moving into new segments 
organically and are carefully considering 
acquisitions. RedNet, our audio networking 
over IP product line, for example, is taking  
us into Live Sound, Broadcast and other  
new segments.
Expand
Technology has been a double-edged sword 
for musicians: it has created inexpensive ways 
to make, record and distribute music but it  
has also made giant demands on them. In the 
past, for example, a musician went into a studio 
where an audio engineer recorded them.  
Now the musician IS the engineer. Focusrite 
develops transparent technology to liberate the 
musician, to make music easy to make, at all 
levels of expertise.
Make Easy We’ve grown quickly while we’ve invested 
heavily in R&D to turn out innovative, 
high-quality and attractive products for 
musicians and audio professionals. We  
spend 7% of revenue on product development 
and seek to achieve about a third of our 
revenue from products launched within the  
last year. The result: in FY15 we launched  
 19 new products.
Innovate Financial Statements Governance Strategic Report  Strategic Report
08
Focusrite Plc  
Annual Report and Accounts 2015
Chairman’s Statement
Record revenue and  
profit for the year
I would like to express  
my appreciation to the 
shareholders that participated 
in the flotation of Focusrite 
Plc on AIM in December 
2014 and welcome new 
shareholders that have 
acquired shares in Focusrite 
subsequently.
This is the first set of annual results since 
Focusrite Plc floated and I am pleased that 
we have performed well, meeting market 
expectations with record revenues and 
profit for the year. We issued 19 new 
products this year and will continue to 
invest in our research and development 
programme to develop future generations 
of product.
Our Group offers its products under two 
brands; Focusrite, which is the global leader 
in Audio Interfaces for recording with 
computers (the modern paradigm), and 
Novation, a brand acquired 1 1 years ago 
that specialises in synthesisers, keyboards 
and grid controllers for the Electronic  
Music market.
Both brands have a strong reputation for 
innovation, quality of build and performance, 
resulting in ever greater levels of customer 
satisfaction and resultant growth.
As a 26-year-old business we have a depth 
of management experience that belies the 
fact that the average age of our workforce 
is around 30. We employ new graduates in 
music technology and audio engineering in 
the business every year. Most employees 
are musicians as well as development 
engineers, sales, support and marketing 
staff (even Dave Froker, the CEO, is an 
accomplished rock guitarist!). This means 
that we have a strong empathy with the 
aspirations of our customers and indeed all 
our musician employees use our products 
in their personal creative endeavours. In 
turn we are proud that our employees have 
voted Focusrite as one of the ‘100 Best 
Small Companies to Work For’ (Sunday 
Times), for the past four years.
Meeting the aspirational 
needs of today’s global 
music creation community.  Financial Statements Governance Strategic Report 
09
Fo c us ri t e P l c  
Annual Report and Accounts 2015
2015
2014
2013
2012
2011
2010
2009 9.1
13.9
20.2
25.3
36.1
41.0
48.0
Group revenue (£m)
£48.0m
+17%
The Group was fortunate to go into the 
recession following the 2008 financial 
crisis with no debt and we have built the 
Group to five times the 2009 revenue since 
then. Despite having invested heavily in 
product development and marketing to 
build the business aggressively to meet the 
ever-expanding demand, we remain debt 
free and highly cash generative. 
As a result the Directors have recommended 
a final dividend of 1.2 pence per share, 
making a total of 1.8 pence per share for  
the year. The final dividend is subject to 
shareholder approval, which is being sought 
at Focusrite’s Annual General Meeting to be 
held in January 2016.
Our largest market by revenue is the  
United States, where our brands are well 
represented in all the leading resellers of 
music equipment, notably Guitar Center –  
a chain of 280 stores – and Sweetwater 
Sound, a unique, proactive and online 
business that sells nationally from a single 
location in Indiana, as well as Amazon and 
many independent retailers. This strong 
brand representation in our product 
categories is reflected in the UK, Europe 
and almost everywhere people are 
recording and performing music.
There has never been a better time to be in 
the musical instrument and music recording 
market and we are making the best of the 
opportunity, taking a leading role in the 
changes that are sweeping our marketplace.
Finally, a big thank you to all the employees 
in the business for their teamwork and 
commitment to our collective goals and to 
our distribution and retail partners for their 
continued support.
Philip Dudderidge
Executive Chairman
Microsoft Production Studios adding 
new Focusrite RedNet interfaces
RedNet is helping position us for the future.
Microsoft Production Studios has expanded its existing RedNet 
infrastructure at its Redmond, Washington compound, where  
full-service, state-of-the-art facilities provide all of the resources 
necessary to produce end-to-end media solutions for Microsoft  
and third-party clients. Music making is going through a profound 
time of change: it’s performed, recorded 
and distributed in new ways. Focusrite is  
at the forefront of these changes: creating 
new instruments, disrupting how music is 
recorded, and helping musicians find new 
paths to listeners.
Disrupt Financial Statements Governance Strategic Report  Strategic Report
12
Focusrite Plc  
Annual Report and Accounts 2015
Chief Executive’s Statement
Make it  
easy
Innovating for growth 
On the strength of our 19 new product 
launches, revenue continued its pattern  
of annual growth, rising to £48.0 million 
(2014: £41.0 million) representing a rise  
of 17.2% (2014: 13.5%). All business 
segments grew, including Focusrite 
products rising by 16.3% from £26.8 
million to £31.2 million, and Novation 
products rising by 22.7% from £11.5  
million to £14.2 million.
In addition, revenue increased in all regions: 
USA grew by 29.3%, Europe, Middle East 
and Africa (‘EMEA’) by 9.4% and Rest of 
World by 14.5%. We grew Adjusted 
EBITDA by 13.1%, with Adjusted EBITDA 
representing 19.4% of revenue. The growth 
was relatively consistent across our two 
brands. Two key new products, the 
Focusrite Clarett range of audio interfaces 
and Novation’s Launchpad Pro, arrived near 
the end of the financial year which, along 
with upcoming new product launches in the 
new financial year, should provide a good 
basis for future growth.
The market 
Globally the overall music gear market is 
growing, with macroeconomic forces 
affecting regions differently. The USA,  
not surprisingly with its relatively healthy 
economy, is in better shape than the 
Eurozone and Latin America. Asia continues 
to grow faster than the rest of the world  
even with China’s slowdown, although that  
is currently a small part of our business.
Driving disruption
More important to our business is the 
changing nature of music making, production 
and distribution. Focusrite is well-placed to 
take advantage of the shift to electronic 
dance music (‘EDM’), mobile ways of making 
and recording music, and the use of Spotify 
and YouTube as media for awareness and 
delivering music to fans. As a measure of 
both the changing use of musical instruments 
and the reliance on mobile platforms, 
downloads of Novation’s Launchpad App for 
Apple’s iOS platform grew by 87% and the 
revenue derived from that app, albeit still a 
relatively small percentage of overall 
revenue, grew by 185%.
Making it easy 
Musicians today face an unending stream 
of hurdles while creating, producing and 
performing music. Our drive to make music 
easy to make – at all levels of expertise – 
is paying off: the percentage of new owners 
of our products calling for help from Tech 
Support continues to decline to 3.5% from 
We intend to continue innovating, which has been the 
engine of our growth, and we are continuing to disrupt 
traditional methods of music making. This is liberating 
musicians with transparent technology that allows them 
to stay in the flow of creating, producing, recording  
and distributing their music. And we intend to continue 
extending the boundaries of our market with steps  
into adjacent segments.  Financial Statements Governance Strategic Report 
13
Fo c us ri t e P l c  
Annual Report and Accounts 2015
2015
2014
2013
2012
2011
2010
2009
Adjusted EBITDA (£m)
+13%
1.3
2.4
3.2
4.0
7.2
8.2
9.3
6.5% last year. Critical praise from the 
press and end-users tells us our focus  
is paying off. 
Expanding into new segments 
The launch of the Clarett Thunderbolt line  
of interfaces takes Focusrite into a new, 
lucrative segment of the market, where 
products sell for between $500 and $1,500. 
Initial reviews by users and press experts 
suggest we’ll do well with Clarett. Focusrite, 
with its lower-priced Scarlett range of 
interfaces, already claims the number one 
worldwide position under $500. Launchpad 
Pro thrusts Novation into a new, higher price 
segment of grid controllers for the widely 
used software Ableton Live. Our entry into 
interfaces for the nascent iOS recording 
market, the iTrack line, is exploring new 
markets as musicians are just starting to 
experiment with mobile recording platforms. 
Finally, our introduction of RedNet audio 
networking products is causing excitement 
in the demanding ‘the-show-must-go-on’ 
Live and Broadcast segments. We intend to 
expand further by continuing to explore new 
market segments, both through acquisition 
and home-grown investment.
Managing margins
As explained more fully in the Financial 
Review, gross margin remained similar to 
the prior year. Our Euro exchange rate 
hedging kept our performance insulated 
from the volatility experienced during the 
year. As ever we kept a close control on 
product manufacturing costs, which have 
defied Chinese inflation trends. Operating 
costs continue to be managed carefully.
A great place to work 
With our rapid growth we face the enviable 
but difficult task of hiring the talented 
people we need to work with us. We place 
great emphasis on our recruiting, interviewing 
and hiring decision-making skills. Each 
employee has a bespoke training programme 
to raise their skills and further their careers. 
The Group has had a 
positive year following the 
IPO and is well set up for 
future growth. 
A new product, Circuit, is an inspirational grid-based  
groove box.
Our strategy is clear to employees and  
their goals and objectives are tied to the 
Company’s overall goals. We are delighted 
that for the fourth year in a row Focusrite  
was named one of the ‘100 Best Small 
Companies to Work For’. At the same time 
our continued focus on cost control and 
efficiency meant our revenue per employee 
increased. We grew headcount costs by 
7.1%, less than revenue and profit growth. 
We thrive on hard work, fun and results.
Executing operationally 
In the spring we relaunched the Novation 
brand, which followed a careful analysis of 
the brand’s strategy, heritage, values and  
an understanding of customer perception. 
We also reorganised our R&D department 
to make it more focused, fleeter of foot,  
and metric-driven, while we launched 19 
new products. Finally we have worked 
closely with our channel partners and 
upgraded where necessary. 
Current trading and outlook
Products launched at the end of the 
financial year have been well received by 
the market, with excellent reviews across 
the industry. Revenue in the first quarter  
of the current year was ahead of that  
for FY15, itself a record quarter, in spite  
of slower than expected initial sales of  
new products. Pleasingly, existing products 
continue to perform as expected. 
Notwithstanding the weaker Euro, our 
continued significant investment in R&D 
and an exciting new launch schedule for the 
current year gives us confidence that FY16 
will be a further year of revenue growth.
Dave Froker
Chief Executive Officer Make Easy
Technology has been a double-edged sword 
for musicians: it has created inexpensive 
ways to make, record and distribute music 
but it has also made giant demands on 
them. In the past, for example, a musician 
went into a studio where an audio engineer 
recorded them. Now the musician IS the 
engineer. Focusrite develops transparent 
technology to liberate the musician, to make 
music easy to make, at all levels of expertise.  Financial Statements Governance Strategic Report  RGB buttons
Closer integration  
with Ableton Live.
Drum sounds 
Spread across the whole grid, on 
velocity and pressure-sensitive 
pads which let you create 
expressive beats. Financial Statements Governance Strategic Report 
Launchpad Pro 
An instrument 
designed for live 
performance.
Instruments 
The grid illuminates as a chromatic 
keyboard, so you can easily play 
notes, melodies and chords. Strategic Report
18
Focusrite Plc  
Annual Report and Accounts 2015
Financial Review
Robust financial position 
helping the strategy
Revenue has grown in all 
regions and across both 
business segments, 
Focusrite and Novation. 
Overview
The Group had a positive year in which 
revenue increased by 17.2% to £48.0 
million (2014: £41.0 million), gross margin 
was consistent at 38.8% and adjusted 
earnings before interest, tax, depreciation 
and amortisation (‘Adjusted EBITDA’) was 
£9.3 million (2014: £8.2 million), up 13.1%. 
The balance of cash and cash equivalents 
at 31 August 2015 was £6.2 million, up 
from £3.8 million at 31 August 2014.
Income statement
Revenue
Revenue continued its pattern of annual 
growth, rising to £48.0 million (2014: £41.0 
million) representing a rise of 17.2% (2014: 
13.5%). All business segments grew, 
including Focusrite products rising by 
16.3% from £26.8 million to £31.2 million, 
and Novation products rising by 22.7%  
from £1 1.5 million to £14.2 million.
In addition, revenue increased in all regions: 
the USA grew by 29.3%, EMEA by 9.4% 
and Rest of World by 14.5%.
Gross profit
Gross profit comprises the revenue earned 
from the sale of stock, less the cost of sales 
of those products including the material cost, 
freight, storage, royalties and revenue based 
sales commissions. Gross profit increased  
to £18.6 million (2014: £15.9 million). Gross 
margin was consistent with the prior year  
at 38.8%. At constant exchange rates, the 
gross margin was 40.1%.
Administrative and other expenses
Administrative and other expenses 
comprise uncapitalised research and 
development costs, engineering and 
operations costs, sales and marketing 
costs, administrative expenses and 
depreciation and amortisation. Overall, the 
administrative expenses were £12.3 million. 
Within administrative expenses, there are 
some increased costs associated with the 
Group now being a quoted company. These 
totalled £0.5 million. Excluding these, the 
rise in ongoing administrative costs was 
12.7%, less than the increase in the revenue.
In addition, the administrative expenses 
include one-off costs of £0.7 million (2014: 
£0.7 million) associated with the Initial 
Public Offering. Financial Statements Governance Strategic Report 
19
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Income statement
 
2015
£m
Reported
2015
£m
Non- 
underlying
2015
£m
Adjusted
2014
£m
Reported
2014
£m
Non- 
underlying
2014
£m
Adjusted
Revenue 48.0 0.0 48.0 41.0 0.0 41.0
Cost of sales (29.4) 0.0 (29.4) (25.1) 0.0 (25.1)
Gross profit 18.6 0.0 18.6 15.9 0.0 15.9
Administrative expenses and  
other gains (12.3) (0.7) (11.6) (10.2) (0.7) (9.5)
Operating profit 6.3 (0.7) 7.0 5.7 (0.7) 6.4
Net finance income 0.2 0.0 0.2 0.1 0.0 0.1
Profit before tax 6.5 (0.7) 7.2 5.8 (0.7) 6.5
Income tax expense (1.0) 0.0 (1.0) (0.8) 0.0 (0.8)
Profit for the period 5.5 (0.7) 6.2 5.0 (0.7) 5.7
Adjusting for these one-off costs, Adjusted 
EBITDA increased by 13.1% from £8.2 
million to £9.3 million.
Currency exposure and hedging
During the period, there have been 
significant movements in both the US Dollar 
and the Euro. 
Exchange rates FY15 FY14
Average 
US$:£ 1.56 1.65
€:£ 1.35 1.21
Year end 
US$:£ 1.54 1.68
€:£ 1.37 1.26
US Dollar
The US Dollar has strengthened against 
Sterling to an average rate of $1.56 (2014: 
$1.65). The Group purchases stock from 
several suppliers in China and pays for that 
stock in US Dollars. The vast majority of 
that cash outflow is matched by the cash 
inflow from the US Dollar denominated 
revenue in the US, Canada, South America 
and Asia Pacific. This means that a 
strengthening of the US Dollar leads to  
an increase in revenue but has little effect 
on gross profit.
 
2015
£m
Reported
2015
£m
Non- 
underlying
2015
£m
Adjusted
2014
£m
Reported
2014
£m
Non- 
underlying
2014
£m
Adjusted
Operating profit 6.3 (0.7) 7.0 5.7 (0.7) 6.4
Less – Profit on disposal of property, plant and equipment 0.0 0.0 0.0 (0.1) 0.0 (0.1)
Add – Amortisation of intangible assets 1.9 0.0 1.9 1.5 0.0 1.5
Add – Depreciation of tangible assets 0.4 0.0 0.4 0.4 0.0 0.4
EBITDA 8.6 (0.7) 9.3 7.5 (0.7) 8.2
Euro
During the period, the Euro weakened 
against Sterling to an average rate of €1.35 
(2014: €1.21). Around 27% of the Group’s 
revenue is generated in European countries. 
There are few costs denominated in Euros. 
This means that a weakening in the Euro 
leads to a decrease in revenue and a 
consequential decrease in gross profit.
Hedging
To compensate for these movements, the 
Group has a rolling policy of entering into 
forward exchange contracts ensuring that  
the major portion of cash flow movements  
are hedged for the forthcoming financial year. 
In the financial year ended 31 August 2015, 
the contracts have protected against some 
of the downside pressure caused by the 
weakening of the Euro. During the period, 
the gains realised on the exchange rate 
hedging totalled £0.8 million and are 
included within revenue. In addition, under 
IFRS, the Group is required to fair value the 
committed future hedge contracts and so, 
at the period end, an asset of £0.2 million is 
included on the balance sheet (31 August 
2014: an asset of £0.1 million). The change 
in fair value of these contracts is included 
within financial income and finance costs  
in the income statement.
At constant exchange rates, the revenue 
growth would have been 14.9% compared 
with the reported growth rate of 17.2%. 
Conversely, at constant exchange rates, 
the gross margin would have been 40.1% 
compared with the reported gross margin 
of 38.8% (2014: 38.8%). 
For the year from September 2015 to 
August 2016, the total value of Euro hedge 
contracts is for €15.6 million, comprising 
€14.4 million to be converted to pounds 
Sterling at an average protected rate of 
€1.39:£1.00 and €1.2 million to be 
converted to US Dollars at an average 
protected rate of $1.22:€1.00. These 
forward contracts improve certainty and 
protect against further currency weakening 
although they do reflect the weaker Euro 
from last year’s hedged rate of €1.27.
Corporation tax
The majority of the profit made by the 
Group is taxed in the UK. The Group 
benefits from tax allowances (R&D tax 
credits) on the significant research and 
development costs explained above, 
thereby reducing the effective tax rate.  
In contrast, IPO costs are, typically, not 
allowable for corporation tax. The total tax 
charge is calculated as £1.0 million (2014: 
£0.8 million) representing 15.8% of profit 
before tax, up from 13.1% in the prior year. 
Note that, excluding the IPO costs, the 
effective tax rate is 14.2%. Strategic Report
20
Focusrite Plc  
Annual Report and Accounts 2015
Financial Review
continued
Earnings per share
The adjusted basic and diluted earnings per 
share figures exclude the impact of the 
non-underlying costs in each financial year. 
One factor influencing the EPS growth was 
the issue of shares prior to the IPO. Were  
it not for these pre IPO share issues, the 
adjusted diluted EPS would have increased 
by 6.9%.
Balance sheet
Non-current assets
The major non-current assets are 
capitalised development costs, shown within 
other intangible assets, and tooling, shown 
within property, plant and equipment.
The total value of development costs 
capitalised during the year was £2.7 million, 
up from £1.9 million in the prior year. The 
increased capitalisation was a function of 
bringing 19 products to market compared 
with eight in the prior year. These costs are 
amortised over their useful life which we 
have deemed to be three years.
Within property, plant and equipment,  
the total additions during the year were 
£0.8 million (2014: £0.8 million) of which 
£0.4 million was tooling for new products.
Working capital
Working capital comprises inventories plus 
trade and other receivables, less trade and 
other payables. Overall, working capital was 
16.6% of revenue as at 31 August 2015 
compared with 15.3% in the prior year. 
Generally, receivables and payables increase 
largely in line with revenue. The main reason 
for the higher working capital was increased 
inventories due to new product lines.
Inventories
Inventories increased to £8.6 million, up 
from £6.6 million at 31 August 2014. When 
compared to the annual cost of sales,  
this represents a stock turn of 3.4 times 
compared with 3.8 times in the prior year. 
The stock has been increased partly to 
support the additional revenue and partly 
because 14 out of the 19 products were 
introduced in the second half of the year 
and the Group invested in stock to support 
the anticipated demand of new products.
Trade and other receivables
Trade and other receivables were £7.8 
million, up from £6.4 million at 31 August 
2014. The primary increase was as a result 
of increased revenue and the trade 
receivables represented 49 days of sales, 
compared with 53 days last year.
Trade and other payables
Trade and other payables totalled £8.4 
million, up from £6.7 million at 31 August 
2014. The major element is outstanding 
invoices for the purchase of stock. This 
increased as a result of the greater 
purchases of stock close to the end of the 
financial year. At the year end, the credit 
period taken for trade purchases averaged 
66 days (31 August 2014: 59 days), helped 
by one significant supplier changing their 
accepted terms from 45 days to 60 days.
Cash
The year end cash balance was £6.2 million, 
up from £3.8 million at 31 August 2014.  
The Group does not have any borrowings. 
However, on 3 December 2015, after the 
end of the reported period, the Group 
completed the arrangement of a committed 
five-year £10 million revolving credit facility 
(‘RCF’) with HSBC. This provides the Group 
with additional financial resources to take 
advantage of growth opportunities as well 
as further strengthening the balance sheet.
Cash flow
Free cash flow (being net cash from 
operating activities, less net cash used in 
investing activities) was £2.7 million 
(2014: £6.2 million). Particular areas of 
focus during the year have been an 
increased spend on research and 
development costs associated with 
developing new products and shepherding 
the production process to ensure that good 
quality new products are sold to dealers at 
the planned time. The total of these costs 
was £3.4 million (2014: £2.5 million). This 
represents an increase of 37.1% which 
resulted in 19 new products being 
introduced in the year, up from eight 
products in the prior year. The lifespan of 
new products is normally at least three 
years so the benefit is expected to accrue 
over several years. The total capitalised 
during the year was £2.7 million  
(2014: £1.9 million). 
Earnings per share
FY15
p
FY14
p
Growth
%
Basic 10.4 10.3 1.6%
Diluted 9.3 8.8 5.6%
Adjusted basic 11.8 11.7 0.4%
Adjusted diluted 10.5 10.1 4.3%
Balance sheet
 
2015
£m
2014
£m
Non-current assets 5.2 4.0
Current assets 
 Inventories 8.6 6.6
 Trade and other receivables 7.8 6.4
 Other current assets 0.2 0.1
 Cash 6.2 3.8
Current liabilities (8.8) (7.1)
Non-current liabilities (0.7) (0.6)
Net assets 18.5 13.2
Cash flow
2015
£m
2014
£m
Free cash flow 2.7 6.2
Add – Exceptional cash outflows 1.2 0.2
Less – Repayment of related party loan 0.0 (1.1)
Underlying free cash flow 3.9 5.3 Financial Statements Governance Strategic Report 
21
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Key Performance Indicators (‘KPIs’)
The main KPIs used by the Group are either financial or related to product, especially new products introduced and customer satisfaction.
4 This is a new KPI that asks the question ‘How likely are you to recommend 
Focusrite to a friend or colleague?’. The score is based on subtracting  
the percentage of Detractors (score 0–6, unhappy customers) from the 
percentage of Promoters (score 9–10, loyal enthusiasts) and yields the  
net promoter score of the Company. 
5 We aim to make our products easy to use. This is the proportion of people  
who buy a Focusrite product, register their purchase and have no need to  
call our technical helpline. We target at least 95%. 
The exceptional cash flows comprised mainly 
the cost of the IPO and the repayment, in the 
year ended 31 August 2014, of a loan made 
to a related party during 2012. Adjusting for 
these, the free cash flow was £3.9 million 
and represented 8.0% of revenue and 62% 
of profit after tax adjusted for exceptional 
items (2014, £5.3 million, representing 13.1% 
of revenue and 93% of profit after tax 
adjusted for exceptional items). The main 
difference was that in 2014, there was a 
reduction of working capital whereas in 2015 
there was an increase in working capital as 
described previously. 
Dividend
During the year, the Company paid an 
interim dividend in respect of the year 
ended 31 August 2015 of 0.6 pence per 
share, amounting to £0.3 million. In addition, 
following the year end, on 9 December 
2015, the Directors proposed a final 
dividend of 1.2 pence per share, making  
a total of 1.8 pence per share for the year.
The dividend is subject to shareholder 
approval, which is being sought at 
Focusrite’s Annual General Meeting  
to be held on 29 January 2016.
2015
2014
48.0
41.0
Group revenue (£m)
2015
2014
9.3
8.2
Adjusted EBITDA
1
 (£m)
2015
2014
3.9
5.3
Underlying free cash flow
2
 (£m)
2015
2014
27.1
26.5
NPI revenue as % of full year revenue
3
 (%)
2015
2014
96
93
Make easy
5
 (%)
2015
2014
60
Not available
Net promoter score
4
 (%)
The Group intends to adopt a sustainable 
and progressive dividend policy, subject to 
ensuring that the business retains sufficient 
cash to invest adequately in research and 
development to develop the products which 
will drive future growth.
Summary
In summary, the Group has had a strong 
year: revenue has grown by 17.2%, 
Adjusted EBITDA has increased from £8.2 
million to £9.3 million and cash generation 
has been good despite the greater 
investment in new stock. As a result, the 
cash balance has increased from £3.8 
million to £6.2 million and the Directors 
believe that this, combined with the new 
RCF, arranged since the year end, adds 
further robustness to the Group’s balance 
sheet and will help the Group to execute  
its strategy.
Jeremy Wilson
Chief Financial Officer
1 Comprising of earnings adjusted for interest, taxation, depreciation, 
amortisation and non-underlying items.
3 This is the first 12-month revenue for new products as a percentage of total 
revenue for FY15.
2 This is free cash flow prior to non-underlying items. It has declined due largely 
to increased investment in stock and research and development. Focusrite’s addressable market currently 
represents only 16% of the larger market 
for musical instruments and pro audio 
products. We are actively moving into new 
segments organically and are carefully 
considering acquisitions. RedNet, our  
audio networking over IP product line,  
for example, is taking us into Live Sound, 
Broadcast and other new segments.
Expand Financial Statements Governance Strategic Report  Better 
Up to 1 19dB dynamic range, superb low noise, 
precision 24/192 conversion and eight specially 
designed mic preamps with a unique analogue 
‘Air’ effect, Clarett 8PreX simply sounds great, 
easily outperforming other interfaces in its  
class and beyond.
Faster 
Amazingly low latency, liberating 
musicians from workarounds 
while recording. Financial Statements Governance Strategic Report 
Easier 
New control panel software 
makes setting up and adjusting 
Clarett a breeze. Strategic Report
26
Focusrite Plc  
Annual Report and Accounts 2015
Principal Risks and Uncertainties
Risk factors
The risks have not changed significantly from the IPO, however, as this is the first annual results announcement and there is not a prior 
Annual Report to refer to, they have been disclosed here as well as the Annual Report. 
In common with all businesses, the Group faces risks, the effective management of which is necessary to enable it to achieve its strategic 
objectives and secure the business for the long-term and is critical to the effective running of the business. Risk management is considered 
as part of the Group’s decision-making processes.
Risk area Description Mitigation
Economic environment The Group operates in the global economy and 
ultimately within a retail environment to consumer 
end-user musicians and such operations are 
influenced by global and national economic factors. 
The Group sells products in around 160 territories 
worldwide via two distinct product categories and 
so aims to avoid being unduly reliant on any single 
product or territory.
Technological changes, 
product innovation and 
competition
The market for the Group’s products is 
characterised by continued evolution in technology, 
evolving industry standards, changes in customer 
needs and frequent new competitive product 
introductions. If the Group is unable to anticipate 
or respond to these challenges, or fails to develop 
and introduce successful products on a timely 
basis, it could have an adverse impact on the 
Group’s business and prospects.
The Group invests significantly in its research and 
development and operates a rigorous, disciplined 
product introduction process to ensure that as far 
as possible the fast-changing needs of its target 
markets are met. In addition, the Board aims to 
operate an efficient, low-cost business.
Dependence on a small 
number of suppliers
The Group is dependent on a small number of 
suppliers, in particular its largest supplier, which 
supplies Focusrite interfaces. Failure or material 
delay by its suppliers to perform or failure by the 
Group to renew such arrangements could have a 
material adverse effect on the Group’s business, 
operating results and financial position. 
The Group diversifies its risk by using four major 
Chinese manufacturers for the production of its 
products. Relationships are long lasting and strong. 
Typically, members of the Operations department 
within Focusrite meet each supplier every quarter 
to review performance and costs. 
Key resellers and 
distributors
In certain countries, the Group operates via a 
single distributor or has large individual reseller 
customers. In certain cases, a failure of or 
breakdown in the relationship with a key reseller 
could significantly and adversely affect the 
Group’s business.
In cases where there is a large distributor in a 
significant market (e.g. the USA), the Group also 
maintains contact with the major retailers. In 
addition, the Group carefully monitors customer 
credit limits and has credit insurance which 
typically covers 90% of the customer debts 
outstanding at any point in time.  Financial Statements Governance Strategic Report 
27
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Risk area Description Mitigation
Development of the 
channels to market
Significant change in the methods by which 
end-users wish to buy Focusrite products could 
significantly affect the Group’s business. 
In each market, the Group or its distributors sell to 
both ‘bricks and mortar’ and eCommerce retailers 
so that the Group can satisfy customer demand via 
both methods.
Currency risks The Group is exposed to currency and exchange 
rate fluctuations which may affect the Group’s 
revenue and costs when reported in Sterling.
There is a largely effective natural hedge for USD 
transactions in as much as the Group uses its 
generation of USD to buy product in USD. In 
addition, the Group mitigates its Euro exposure by 
entering into forward extra foreign exchange 
hedging contracts for the conversion of EUR to 
USD and GBP. 
Scarcity of experienced 
technical personnel
The nature of the Group’s business requires its 
employees in the technical and development 
teams to be highly skilled and experienced in  
their respective fields. The Group is dependent  
on being able to hire and retain such individuals  
in order to grow.
The Group is a leading music industry company  
in the UK and so attracts high quality technical 
personnel. The Group also attracts graduates from 
music technology courses at local universities. The 
Group has wide-ranging share ownership incentives 
and other employment benefits to aid retention.
Intellectual property and 
data protection 
The intellectual property and data developed by 
the Group is valuable and the Group could be 
harmed by infringement or loss.
The Group has strong data and information 
technology controls which are reviewed by the 
Group Board. Additionally, the Group includes data 
protection provisions in the contracts of all Group 
employees. The Group also aims to protect its 
intellectual property and pursues infringements. Strategic Report
28
Focusrite Plc  
Annual Report and Accounts 2015
Corporate Social Responsibility
We have a duty to maintain the trust of the end-users of our 
products as well as our customers, suppliers, staff and other 
stakeholders by ensuring that we act with integrity at all times. 
Corporate Social Responsibility (‘CSR’) is a core part of that 
commitment. We recognise that by acting in a responsible and 
considerate way with everyone who comes into contact with us,  
we will positively impact both the societies we operate in and the 
music-making communities that lie at the heart of our business, 
supporting the long-term value of Focusrite. Our CSR policy  
builds on the foundations we have put in place to reduce our 
impact on the environment, ensuring we act as a responsible and 
fair employer and supporting the national and local community 
projects that our staff are involved in.
Impact on society
Focusrite carefully considers its social impact at both the local 
and global levels. Local initiatives include always trying to recruit 
locally to minimise commuting miles and encouraging employees 
living further afield to relocate locally, which in turn supports the 
local community.
Focusrite has successfully established and maintained links with 
educational establishments on a local and national level. Working 
with educational establishments is not a new concept for Focusrite. 
Since 1999 Focusrite has worked closely with Surrey University 
and its Institute of Sound Recording under the banner of the 
world-renowned Tonmeister course. Each year Focusrite takes on 
two Tonmeister third year undergraduate interns and provides them 
with a year of intense work experience. Several of Focusrite’s 
current technical staff have been recruited as a result of this close 
relationship with Surrey University.
Moving further afield Focusrite works with four major Chinese 
contract manufacturers. Focusrite visits its contract manufacturers 
at least once every three months to check on compliance issues, 
manufacturing control and general relationship management. 
Environmental impact
There are two aspects which Focusrite evaluates when assessing 
environmental impact, the first being the environmental impact of 
the corporation and its activities and the second being the 
environmental impact of Focusrite’s products.
In terms of the environmental impact of the corporation there are a 
number of policies that have been introduced to lower any negative 
impacts. These include Focusrite supporting the government 
initiative of the Bike to Work scheme, of which 16% of staff  
have participated. 
Employees are encouraged to lower their carbon footprint by lift 
sharing and there is an unofficial car pool scheme for those who 
live in London and in the local area which is used on a daily basis.
In terms of waste, Focusrite is registered for WEEE and Focusrite 
has deployed recycling bins in every office and communal work 
area with shredding bins for secure waste.
Focusrite has also stopped using alkaline (non-rechargeable) 
batteries across the Company and has replaced these with high 
capacity nickel metal hydride (rechargeable) batteries.
Focusrite has started to conduct video conferencing for 
international meetings that has resulted in a reduction in the annual 
number of international flights undertaken by employees.
The packaging for Focusrite products has been designed to have 
minimal environmental impact and Focusrite has recently 
substituted the use of expanded polyethylene foam with moulded 
recycled pulp paper.
All Focusrite products which rely on mains power comply with all 
current power efficiency directives and either have internal high 
efficiency switchable power supplies or external high efficiency 
power supplies.
Relations with suppliers, partners and contractors
Whilst price will always play an important part in the commercial 
decision making of Focusrite in terms of suppliers, partners and 
contractors, it is by no means the only significant consideration. 
Focusrite prides itself not only on what it does but the way that it 
does it and this must also be true for those third parties with 
which it partners.
Examples of this include a strategic partnership with Geodis which 
provides inbound and outbound third party logistics to Focusrite. 
Geodis is the fourth largest European transport and logistics 
supplier and the UK headquarters are located close to Focusrite. 
Geodis is committed to lowering the negative environmental impact 
of its operations as well as maximising the positive social impact. It 
achieves this by reviewing each shipment to determine the most 
efficient methods of transporting products, both inbound and 
outbound. Focusrite forward plans the production and shipment of 
its products so that air freight is not required.
The electricity supplier to Focusrite is Total, which has 
demonstrated a true year-on-year reduction in CO
2
 emissions from 
its power stations, transportation and from its own offices. The fact 
that Total states that sustainability is its business, its strategy and 
its future aligns it well with the sustainability ethos of Focusrite. Financial Statements Governance Strategic Report 
29
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Focusrite’s choice of Chinese contract manufacturers is critical to 
the business, not only in terms of quality of manufacture but also in 
terms of social responsibility and sustainability. An example of this 
is our largest manufacturer, which is ISO9002, TS9000, 
ISO9001:2000, ISO14001, TL9001, ISO13488 and TS16949 
certified as well as a commitment to providing a safe and enjoyable 
working environment for its 3,500 contract manufacturing staff. 
Modern Slavery Act (2015)
All of Focusrite’s contract manufacturers are responsible employers 
which comply with local employment law and provide good working 
and living conditions to their staff. As part of the ongoing 
relationship with these manufacturers, senior members of the 
Group visit each supplier around four times per year. These visits 
include inspection of the production lines, the people working on 
those production lines and their working, eating and living 
conditions to ensure that they are acceptable.
Relations with employees
Whilst Focusrite has clear leadership and reporting structures in 
place it enjoys a flat hierarchy amongst its staff. This approach, 
together with an ‘open door’ policy, means that anyone at any time 
can talk to any of the Directors to raise any matters for discussion, 
ask questions or share ideas. The fluidity of knowledge sharing in 
the Company is one of its core strengths and that together with the 
true sense that all staff are members of the Focusrite family means 
that challenges can often turn to opportunities.
Focusrite has been awarded a three star accreditation (the highest 
possible) four years in a row from Best Companies, the 
organisation which conducts and manages The Sunday Times 100 
Best Small Companies to Work For. Focusrite has also been 
included in the list of The Sunday Times 100 Best Small 
Companies to Work For from 201 1 to 2014.
To assist in the dynamic flow of knowledge within the company, 
Focusrite has an internal company blog, WIKI and message board 
for the sharing of ideas, information and best practice.
Focusrite staff enjoy the use of a fully subsidised kitchen for both 
breakfast and lunch as well as free coffee, tea and biscuits 
throughout the working day.
To ensure that both employees and Focusrite are getting the best 
out of each other there are formal employee assessments on an 
annual basis and informal assessments throughout the year.
The Company has a comprehensive documented health and safety 
policy in place which is reviewed by the Compliance Committee 
regularly.
All employees are clear that they are able to contact the Chairman, 
CEO or either of the Non-executive Directors of the Group if they 
have an issue which they feel they cannot discuss with their 
immediate manager.
Relations with customers
Focusrite has three types of customer: distributor, retailer and 
end-user. Ultimately Focusrite makes product for the end-users of 
those products and that is where its customer attention is most 
acutely focused. Communicating with end-users is realised through 
direct e-comms, social media sites and YouTube channels. 
Relevance and authenticity are the hallmarks of Focusrite’s 
end-user communication strategy, with industry-leading videos as 
the primary medium for content. A genuine bi-directional line of 
communication with swift response rates has helped to grow 
Focusrite’s social media channels, most notably with the Novation 
brand. With paid advertising on social media kept relatively low, 
investments are instead made in the generation of strong relevant 
content that the community shares organically. Social media 
channels include Facebook, Twitter, Instagram, Periscope and 
Google+, as well as YouTube.
Both the Focusrite and Novation brands have worldwide recognition 
as being class leading. With over 10% of the Company’s staff 
dedicated to end-user customer support, Focusrite makes sure that 
the users of its products have the best possible experience. 
The customer support team meets weekly to discuss end-user, 
distributor and retailer topics which have come up during the week 
and review past topics. The customer support team also relays this 
information directly to the research and development team, either 
to effect improved usability of a product or to influence future 
product innovation and design. 
Dave Froker Jeremy Wilson
Chief Executive Officer Chief Financial Officer Governance
30
Focusrite Plc  
Annual Report and Accounts 2015
Corporate Governance Report
The Board recognises the importance of sound corporate 
governance and confirms that it has complied with the QCA 
Corporate Governance Guidelines (as devised by the QCA in 
consultation with a number of significant institutional small 
company investors), to the extent appropriate and practicable  
for a company of its nature and size. 
Board of Directors and Board committees 
The Board comprises five Directors of whom three are Executives 
and two Non-executives, and reflects a blend of different 
experience and backgrounds. The Board considers the two 
Non-executive Directors to be independent. Focusrite Plc was 
incorporated on 14 November 2014 ahead of the AIM admission 
on 1 1 December 2014. Prior to the AIM listing the activities of the 
Group were carried on by Focusrite Audio Engineering Limited. 
The roles of Chairman and Chief Executive are separate. The 
Chairman leads Board meetings and Board discussions and has 
responsibility for the Board’s overall effectiveness. The Chief 
Executive is responsible for the achievement of the Group’s 
strategic and commercial objectives, within the context of the 
Group’s resources and the risk tolerances laid down by the Board. 
The Board is responsible to shareholders and provides leadership 
and direction to the Group. It is the role of the Board to set the 
strategic direction and goals of the Group within the risk tolerances 
and control mechanisms the Board believes are appropriate. 
The Board has a list of matters reserved for its consideration  
which include, but are not limited to, matters of strategy, risk 
management, consideration and approval of financial budgets, 
major capital expenditure decisions, acquisitions and disposals, 
approval of the interim and final results and the recommendation  
of any dividends. 
The Board has three committees, each with defined terms of 
reference. They are the Audit Committee, the Remuneration 
Committee and the Nomination Committee. The Board meets on a 
regular basis. During the year from 1 September 2014, the Board 
met 12 times. Formal agenda and briefings are prepared for Board 
meetings, allowing all Directors to participate in the meetings. The 
Directors all have access to independent advice, if required, in 
respect of their duties from a variety of professional advisers. The 
Company maintains an appropriate Directors’ and Officers’ 
insurance policy in respect of any legal actions against the 
Directors or Officers.
Board committees
Ahead of the IPO the Board established three committees  
with clearly defined terms of reference. The members of the 
committees and their duties are set out below.
Audit Committee
The Audit Committee assists the Board in discharging its 
responsibilities, within agreed terms of reference, with regard to 
corporate governance, financial reporting and external and internal 
audits and controls. This includes, amongst other things, reviewing 
the Group’s annual financial statements, reviewing the auditor’s 
findings from the audit including discussion with the auditors 
without executive management being present. It also includes the 
appointment of external auditors, the approval of their fees, 
reviewing and monitoring the extent of the non-audit services 
undertaken by external auditors. Additionally, the Audit Committee 
reviews the effectiveness of the Group’s internal controls and risk 
management systems including monitoring the implementation  
of financial policy and procedure enhancements identified at the 
time of the IPO. With regard to Internal Audit, the Group does not 
have a formal Internal Audit function at present. The committee 
have considered this and believe that internal processes currently 
adopted are appropriate for a group of this size and complexity,  
but the need for a formal Internal Audit function will be assessed 
on an ongoing basis. The ultimate responsibility for reviewing and 
approving the Annual Report and Accounts and the half-yearly 
reports remains with the Board. Membership of the Audit 
Committee comprises the two independent Directors and is 
chaired by Paul Dean. The Audit Committee meets formally not 
less than three times every year and otherwise as required.
Remuneration Committee
The Remuneration Committee is responsible, within agreed terms 
of reference, for establishing a formal and transparent procedure 
for developing policy on executive remuneration and to set the 
remuneration packages of individual Directors. This includes 
agreeing with the Board the framework for remuneration of the 
Executive Directors, the Company Secretary and such other 
members of the executive management of the Group as it is 
designated to consider. It is furthermore responsible for 
determining the total individual remuneration packages of each 
Director including, where appropriate, bonuses, incentive payments 
and share options. No Director may be involved in any decision as 
to their own remuneration. The membership of the Remuneration 
Committee comprises the two independent Directors and the 
committee is chaired by David Bezem. The Remuneration 
Committee meets not less than twice a year and at such other 
times as the Chairman of the committee shall require.
Board Audit Committee Remuneration Committee Nomination Committee
Number Attended Number Attended Number Attended Number Attended
Dave Froker 12 12 – – – – – –
Jeremy Wilson* 7 7 – – – – – –
Phil Dudderidge 12 12 – – – – 1 1
David Bezem* 7 7 3 3 4 4 1 1
Paul Dean* 7 7 3 3 4 4 1 1
* Directors were appointed on 11 December 2014. Financial Statements Governance Strategic Report 
31
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Nomination Committee
The Nomination Committee has responsibility for reviewing the 
structure, size and composition of the Board and recommending to 
the Board any changes required, for succession planning and for 
identifying and nominating for approval of the Board candidates to 
fill vacancies as and when they arise. The committee is also 
responsible for reviewing the results of any Board performance 
evaluation process and making recommendations to the Board 
concerning the Board’s committees and the re-election of 
Directors at the Annual General Meeting. The membership of the 
Nomination Committee comprises the two independent Directors 
and Phil Dudderidge, and the committee is chaired by David 
Bezem. The Nomination Committee meets not less than once a 
year and at such other times as the Chairman of the committee 
shall require.
Investor relations 
The Chief Executive and Chief Financial Officer meet analysts and 
institutional shareholders of the Company after the interim and 
annual results announcements and on an as-needed basis at other 
times in the year to update shareholders on the progress of the 
Group. Additionally, the Non-executive Directors are available to 
meet shareholders if requested. The Directors encourage the 
participation of all shareholders, including private shareholders, at 
the Annual General Meeting. The Annual Report and Accounts are 
published on the Company’s website, www.focusriteplc.com, and 
can be accessed by shareholders and potential investors. 
Internal control and risk management 
The Board is responsible for the Group’s systems of internal 
controls and, together with the Audit Committee, reviewing those 
systems. The systems put in place are designed to manage, limit 
and control risk but cannot eliminate all risk completely. 
The Executive Directors of the Company are actively involved in the 
daily management of the operations of the Group. Business risks 
are regularly identified and appropriate control systems are 
implemented to manage those risks. Such systems are designed to 
manage rather than eliminate the risk of failure to achieve business 
objectives and can provide only reasonable and not absolute 
assurance against material misstatement or loss. Steps have been 
taken to embed internal control and risk management further into 
the operations of the business. The monthly results of each area of 
the business are reported, discussed and compared to forecast.
At the time of the IPO, the Group identified key financial policies 
and procedures that it needed. Since then the Group has enhanced 
the existing internal financial control procedures and monitoring 
systems including: 
• an annual budgetary process to set appropriate measurable 
targets for monitoring Group progress; 
• documented financial policies and approval processes to ensure 
proper authorisation is obtained for spending; 
• segregation of duties within financial management; 
• maintenance of proper records for the production of accurate 
and timely financial information; and 
• detailed monthly reporting to the Board against the operating 
budget and analysis of cash management.
Auditor independence 
The Audit Committee and the external auditors, KPMG LLP, have 
safeguards in place to avoid the possibility that the auditors’ 
objectivity and independence could be compromised. These 
safeguards include the auditors’ report to the Audit Committee on 
the actions they take to comply with the professional and 
regulatory requirements and best practice designed to ensure their 
independence from the Company. In addition, a formal policy for 
audit and non-audit services has been agreed by the Audit 
Committee, ensuring that there is appropriate high level 
authorisation before the auditors are engaged in providing a 
non-audit service. One important non-audit service provided by the 
auditors in the last year was the audit of the financial information 
included in the Admission Document. It was felt that appointment 
of the auditors did not compromise their independence and 
provided beneficial continuity of knowledge.
The overall performance and the independence of the auditors is 
reviewed annually by the Audit Committee taking into account the 
views of management. The Audit Committee also has discussions 
with the auditors without management being present on the 
adequacy of controls and on any judgemental areas. 
The annual appointment of auditors by shareholders in the Annual 
General Meeting is a fundamental safeguard of auditor 
independence, but beyond this, appropriate consideration is given 
to whether additional work performed by the auditors may be 
appropriate for sound commercial and practical reasons, including 
confidentiality. Examples of work that would fall into this category 
include regulatory advice, taxation services and financial due 
diligence work. Governance
32
Focusrite Plc  
Annual Report and Accounts 2015
Board of Directors and Company Secretary
Philip ‘Phil’ Dudderidge
Executive Chairman and Founder
Phil has a distinguished career in the professional 
audio industry. He co-founded Soundcraft in 1973 
which became a leading brand of sound mixing 
consoles, which was sold to Harman International  
in 1988. Phil acquired the assets of Focusrite Ltd  
in 1989. Phil served as Chief Executive Officer  
of Focusrite from 1989 until he become Chairman  
in 2012.
David ‘Dave’ Froker
Chief Executive Officer
Dave was appointed Chief Executive Officer of 
Focusrite in March 2012. Previously, he was Chief 
Marketing Officer at Line6. He served as Chief 
Executive Officer of Stanton Group until 2007, where 
he led the turnaround of audio equipment business 
Stanton Magnetics, Cerwin-Vega and KRK. Prior to 
Stanton Group, Dave was the General Manager of the 
digital audio technology company, Digidesign (a 
division of Avid Technology), from 1996 to 2002, 
where he presided over the growth of Pro Tools into 
the industry-standard audio workstation, as 
Digidesign’s revenue tripled to $135 million.
Jeremy Wilson
Chief Financial Officer
Jeremy was appointed Chief Financial Officer of 
Focusrite in September 2014. Jeremy has prior 
public market experience in a number of finance 
roles. Most recently, Jeremy was Chief Financial 
Officer to Atex Group Ltd, a leading worldwide 
developer of content management and  
advertising software to the media industry. 
Previously, Jeremy was CFO at Regenersis plc,  
the AIM-quoted support services business.  
Prior to his CFO roles, Jeremy held several senior  
finance roles at DHL Express (UK) Limited and 
Electrocomponents Plc. He qualified as a  
Chartered Accountant at KPMG in 1992. Financial Statements Governance Strategic Report 
33
Fo c us ri t e P l c  
Annual Report and Accounts 2015
David Bezem
Independent Non-executive Director
David joined the Board of Focusrite in December 
2014. He brings with him more than 25 years’ 
experience as an investment banker advising UK 
public companies across a range of sectors. Most 
recently David was a Managing Director at Altium 
Corporate Finance and, prior to that, a Managing 
Director at Close Brothers Corporate Finance.  
David qualified as a Chartered Accountant with 
Arthur Andersen & Co. in 1984. He is also a 
Non-executive Director and Chairman of the 
Remuneration Committee at Harvey Nash Group plc.
Paul Dean
Independent Non-executive Director
Paul joined the Board of Focusrite in December 
2014. Paul has over 30 years of experience across 
numerous sectors, including technology. Previously, 
he was Group Finance Director at Ultra Electronics 
Holdings Plc between 2009 and 2013 and Group 
Finance Director of Foseco Plc between 2001 and 
2008, including the period of its flotation in 2005. 
He also held various senior finance roles at Burmah 
Castrol Plc from 1990 to 2000. Currently, Paul is a 
Non-executive Director and Chairman of the Audit 
Committee at Porvair Plc, Polypipe Group Plc and 
Wincanton Plc. He is also the Senior Independent 
Director at Porvair Plc and Polypipe Group Plc. Paul 
is a Chartered Management Accountant. 
Michael ‘Mike’ Warriner
Company Secretary and General Counsel
Mike joined Focusrite in January 2010 as Legal 
Counsel and Head of Business Development, but 
was promoted to Commercial Director in July of the 
same year and, subsequently, Finance Director from 
January 2013 to September 2014. Prior to joining 
Focusrite, Mike was a founder and partner at the 
specialist corporate and technology law firm White & 
Black Legal LLP, where he headed up the Technology 
and IP practice from June 2007. Prior to this, he 
worked at the Oxford-based firm Darbys Solicitors 
LLP as a lawyer in the Corporate, Technology and 
Finance team. Mike attended Trinity College of Music 
where he achieved a Postgraduate Diploma in 
Performance for the Double Bass. Governance
34
Focusrite Plc  
Annual Report and Accounts 2015
Directors’ Report
For the year ended 31 August 2015
The Directors present their report for the year ended 31 August 
2015 in accordance with section 415 of the Companies Act 2006. 
Certain disclosure requirements for inclusion in the Directors’ Report 
have been incorporated by way of cross-reference to content 
elsewhere in the Annual Report and referenced below. In addition, 
this report should be read in conjunction with information 
concerning employee share schemes, which can be found in  
the Directors’ Remuneration Report on page 38 and in note 32  
to the financial statements, and which is incorporated by way  
of cross-reference into the Directors’ Report. The Company did  
not make any political donations during the year.
Results and dividends
The results for the year are set out in the consolidated statement of 
comprehensive income on page 43. During the year the Directors 
approved the payment of an interim dividend of 0.6 pence per share. 
Following the year end the Directors assessed the appropriateness 
of the Group declaring a final dividend and are recommending that a 
dividend of 1.2 pence should be paid. This dividend recommendation 
shall be put to the shareholders to vote on at the Annual General 
Meeting (‘AGM’) to be held on 29 January 2016.
Directors
The individuals who have acted as Directors of the Company 
during the year and biographical details setting out their 
experience are set out on pages 32 to 33. The Executive 
Directors have service contracts in place, with a six-month notice 
period. The Non-executive Directors were appointed on 
11 December 2014. The Non-executive Directors will initially 
serve for a three-year term. Details of each Director’s contractual 
arrangements, including notice periods, are included as part of 
the Directors’ Remuneration Report on pages 36 to 39 and that 
information is incorporated by reference into the Directors’ 
Report. The Board considers that all Directors continue to be 
effective, committed to their roles and able to devote sufficient 
time to discharge their responsibilities. Each of the Directors  
will seek election at the Company’s forthcoming Annual General 
Meeting in accordance with the Company’s Articles of 
Association. This requires at each subsequent Annual General 
Meeting of the Company one-third of the Directors (or, if their 
number is not a multiple of three, the number nearest to but not 
greater than one-third) to retire from office by rotation. Subject to 
the Company’s Articles of Association, the Companies Act 2006 
and any directions given by the Company by special resolution 
and any relevant statutes and regulations, the business of the 
Company, including in relation to the allotment and issuance of 
ordinary shares, is managed by the Board which may exercise all 
the powers of the Company. Matters reserved for the Board are 
detailed on page 30 of the Corporate Governance Statement.
The Directors who served during the year were as follows:
P Dudderidge
D Froker
J Wilson
D Bezem
P Dean
Directors’ interests and indemnity arrangements
At no time during the year did any Director hold a material interest 
in any contract of significance with the Group or any of its 
subsidiary undertakings other than an indemnity provision between 
each Director and the Group and employment contracts between 
each Executive Director and the Group. The Group has purchased 
and maintained throughout the year, Directors’ and Officers’ liability 
insurance in respect of itself and its Directors. 
The number of ordinary shares of the Company in which the 
Directors were beneficially interested at 31 August 2015 is set  
out in the Directors’ Remuneration Report on page 39.
On 5 December 2014, the Group entered into an agreement with 
Phil Dudderidge (the ‘Investor’). This agreement contains, inter alia, 
provisions to allow the Group to operate independently of the 
Investor and any person connected with him for as long as they 
together hold not less than 25% or more of the voting rights. This 
agreement, known as the Relationship Agreement, is described in 
more detail in the Admission Document.
Significant agreements – change of control 
A number of agreements take effect, alter or terminate upon a 
change of control of the Group, such as the employee share-based 
incentive schemes. 
Articles of Association
Any amendments to the Articles of Association of the Company 
may be made by special resolution of the shareholders. 
Share capital 
Details of the Company’s share capital are set out in note 28 to the 
financial statements. The Company has one class of share capital: 
58,075,000 ordinary shares with a nominal value of £0.001 each 
which, following the Company’s Initial Public Offering, were 
admitted to the London Stock Exchange Alternative Investment 
Market on 1 1 December 2014. The rights and obligations attached 
to the ordinary shares are governed by UK law and the Company’s 
Articles of Association. Ordinary shareholders are entitled to 
receive notice and to attend and speak at general meetings. On a 
show of hands, every shareholder present in person or by proxy (or 
a duly authorised corporate representative) shall have one vote 
and, on a poll, every member who is present in person or by proxy 
(or a duly authorised corporate representative) shall have one vote 
for every share held. Other than the general provisions of the 
Articles of Association and prevailing legislation, there are no 
specific restrictions on the size of a holding of the Company’s 
share capital. The Directors are not aware of any agreements 
between holders of the Company’s shares that may result in the 
restriction on the transfer of securities or on voting rights. No 
shareholder holds securities carrying any special rights or control 
over the Company’s share capital.
Restrictions on the transfers of shares 
The Articles of Association do not contain any restrictions on the 
transfer of ordinary shares in the Company other than the usual 
restrictions, which are applicable where a share instrument is not 
duly stamped or certified as exempt from stamp duty, is in respect 
of more than one class of share, relates to joint transferees and 
such transfer is in favour of more than four such transferees, or 
relates to shares that are not fully paid. Financial Statements Governance Strategic Report 
35
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Major interests in shares 
As at 31 August 2015, the following substantial interests (3% or 
more) in voting rights attaching to the Company’s ordinary shares 
had been notified to the Company:
Shareholder
Number of 
voting rights 
as at 
31 August 2015
% voting rights 
as at 
31 August 2015
Philip Dudderidge and family 30,249,000 52.09%
Focusrite Employee Benefit Trust 5,676,000 9.77%
Schroder Investment Management 4,911,108 8.46%
Focusrite Plc Employees and  
Related Parties 3,141,016 5.41%
Investec Asset Management 2,381,000 4.10%
Polar Capital 2,291,752 3.95%
Highclere International Investors 2,257,662 3.89%
Financial risk management
The Group uses financial instruments to manage certain types of 
risks, including those relating to credit and foreign currency 
exchange. The Group’s objectives and policies on financial risk 
management including information on liquidity, capital, credit and 
risk can be found on page 69 of the financial statements and in 
the risks section on pages 26 to 27.
Future business developments
The strategy of the Group is explained in the Strategic Report 
section of this Annual Report and Accounts.
Research & Development
The Group continues to invest in its research and development 
activities, as explained in the Chairman’s Statement and the Chief 
Executive’s Statement.
Health and safety
The Group is committed to providing a safe and healthy working 
environment for all staff and contractors. The Group’s health and 
safety standard sets out the range of policies, procedures and 
systems required to manage risks and promote wellbeing. The 
Company Secretary has overall accountability for health and safety 
across the organisation.
Going concern 
The Company’s business activities, together with risk factors which 
potentially affect its future development, performance or position 
can be found in the Strategic Report on pages 1 to 29. Details of 
the Company’s financial position and its cash flows are outlined in 
the Financial Review on pages 18 to 21. The Directors consider 
that the Group and the Company have adequate financial 
resources together with a strong business model to ensure they 
continue to operate for the foreseeable future. The Company is a 
cash-generative business that, when required, has access to 
borrowing facilities to meet the Group’s future cash requirements. 
Accordingly, the Directors have adopted the going concern basis in 
preparing the financial statements. 
Auditors
As recommended by the Audit Committee, pursuant to section 487 
of the Companies Act 2006 and having indicated its willingness to 
act, the Company will propose a resolution at the AGM that KPMG 
LLP be reappointed as auditor of the Company.
Audit information 
Each of the Directors at the date of the Directors’ Report confirms 
that so far as he is aware, there is no relevant audit information of 
which the Company’s auditor is unaware and he has taken all the 
reasonable steps that he ought to have taken as a Director to 
make himself aware of any relevant audit information and to 
establish that the Company’s auditor is aware of the information. 
The confirmation is given and should be interpreted in accordance 
with the provisions of section 418 of the Companies Act 2006. 
Annual General Meeting 
Details of the Company’s first Annual General Meeting and the 
resolutions to be proposed will be set out in a separate notice  
of meeting. 
The Directors’ Report has been approved by the Board of Directors 
on 9 December 2015. 
Signed on behalf of the Board.
Michael Warriner
Company Secretary
9 December 2015
Focusrite Plc
Windsor House
Turnpike Road
High Wycombe
Buckinghamshire
HP12 3FX
Company number: 9312676 Governance
36
Focusrite Plc  
Annual Report and Accounts 2015
Directors’ Remuneration Report
Welcome to Focusrite’s Remuneration Report for the year to 31 August 2015 and the first Remuneration Report following the Initial 
Public Offering in December 2014. During its inaugural year the newly constituted Remuneration Committee thoroughly examined the 
pre-existing Executive Directors’ remuneration structures as well as conducting a review of the remuneration of the other senior 
managers of the Group. In particular, this review considered what, if any, changes were required to normalise the Group’s policy compared 
to companies of similar size and complexity as well as those in related sectors quoted on AIM. This provided an opportunity to modernise 
the overall packages for the Executive Directors and senior executives and formulate challenging but realistic performance targets in 
respect of both short and long-term performance.
Whilst the Company is not required to comply with section 8 of the Large and Medium-sized Companies and Groups (Accounts and 
Reports) Regulations 2008, the Company has used them as guidance and voluntarily presented selected disclosures in this report where 
it considers them to be relevant and appropriate.
Remuneration Committee and advisers
The members of the Remuneration Committee during the financial year ended 31 August 2015 were David Bezem (Chairman) and Paul 
Dean, the independent Non-executive Directors. Only members of the Remuneration Committee have the right to attend and vote at its 
meetings; however, the Executive Chairman, Chief Executive and Company Secretary are invited to attend where it is deemed appropriate 
or necessary.
The committee members have no personal financial interest, other than as shareholders, in the matters to be decided. They have no 
conflicts of interest arising from cross-directorships or from being involved in the day-to-day business of the Group. The committee 
members do not participate in any bonus, share awards or pension arrangements.
During FY15, the committee sought advice relating to executive remuneration from Kepler Associates, now a brand of Mercer Limited.  
In particular, Kepler were commissioned to carry out a bench-marking exercise for the Remuneration Committee comparing the 
remuneration of the Executive Directors and senior executives against a suitable peer group. Neither Kepler nor Mercer provides any 
other services to the Company. Following that exercise, and with the benefit of Kepler and appropriate legal advice, the Remuneration 
Committee decided to put in place a new long-term incentive scheme in the form of a performance share plan (‘PSP’). This is described 
below in more detail. It was also decided to change some of the terms of the Chief Executive’s remuneration package in respect of FY16 
and these changes are also described below. 
Remuneration policy
The Remuneration Committee is responsible for determining, on behalf of the Board, the Company’s policy on the remuneration of the 
Executive Directors, the Chairman and other senior executives of the Group. The committee’s overarching aims in setting the 
remuneration policy are to attract, retain and motivate high-calibre senior management and to focus them on the delivery of the Group’s 
strategic and business objectives, to promote a strong and sustainable performance culture, to incentivise growth, and to align the 
interests of Executive Directors and senior managers with those of shareholders.
The remuneration package for each Executive Director is designed to include performance and non-performance-related elements. 
Non-performance elements include salary, taxable benefits and pension entitlements. All other components of the remuneration package 
are performance-related and contain a mixture of cash and share-based, and short and long-term incentives, as set out below.
The main elements of the remuneration packages for Executive Directors are:
• basic salary;
• performance-related annual bonus;
• long-term incentive plans; 
• pension contribution; and 
• benefits.
Basic salary
Basic salaries for each Executive Director are reviewed annually and determined by individual performance, relative pay levels within the 
Group and reference to external market data such as other AIM quoted companies of similar size and complexity and operating in related 
industries. The Executive Directors’ basic salaries for FY15 are set out on the table on page 39.
Having taken into consideration the Kepler report on executive remuneration referred to above, the committee reviewed the basic salary 
of the Chief Executive Officer, Dave Froker, and decided to increase his basic salary to the same level as that of the Chief Financial 
Officer, Jeremy Wilson. This change took effect in the new financial year from 1 September 2015. Financial Statements Governance Strategic Report 
37
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Performance-related annual bonus
Dave Froker and Jeremy Wilson were awarded a performance-based bonus for the financial year ending 31 August 2015. Phil Dudderidge, 
the Executive Chairman, does not receive an annual bonus. The bonus awards for the last financial year were based on EBITDA targets 
as set out in the table below which shows the lower and upper boundaries and the actual bonuses achieved:
Performance range
Below which no bonus is paid and above which no additional 
bonus is paid, and calculated on a straight-line basis in between
Lower boundary Upper boundary
FY15 bonus payout – EBITDA 
achieved £9.30m
Dave Froker EBITDA target £9.22m £12.675m £9.30m
Bonus payout £35,091 £100,000 £35,608
% salary 22.8% 65% 23.1%
Jeremy Wilson EBITDA target £9.22m £12.675m £9.30m
Bonus payout £35,091 £100,000 £35,608
% salary 21.2% 60.6% 21.6%
For FY16 the annual performance bonus parameters have been set by the Remuneration Committee and these are also based on the 
achievement of certain EBITDA thresholds. Following the committee’s review of the Directors’ and senior executives’ remuneration structure, 
the most significant change is that Dave Froker’s entitlement to an annual bonus will now represent a greater proportion of his basic salary 
than in this financial year. His maximum achievable annual bonus in FY16 has been increased relative to his basic salary to a maximum of 
75% as compared with 65% this year. Details of the FY16 annual performance bonus plan thresholds and awards will be published in next 
year’s Annual Report and Accounts.
In addition to the performance related annual bonus described above, Jeremy Wilson was entitled to, and received in the year, a one-off 
bonus of £30,000 following the successful admission of the Company to AIM.
Long-term incentive plans
A bespoke share incentive plan was put in place for Dave Froker when he joined the Group in September 2012. In addition, an award of 
options under the existing EMI Scheme was made to Jeremy Wilson pre IPO when he joined Focusrite in September 2014. Phil Dudderidge 
does not participate in a long-term incentive plan. The details of these awards are as follows:
Dave Froker Vesting criteria
£9m
1
£12m £15m
EBITDA attainment
Exercisable options 619,000 632,000 646,000
Exercise price 10.3p 10.3p 10.3p
Jeremy Wilson Vesting criteria To FY17 To FY18 To FY19
Three-year EPS CAGR 12.5% to 22.5% or greater 12.5% to 22.5% or greater 12.5% to 22.5% or greater
Exercisable options 0 to 133,333 0 to 133,333 0 to 133,333
Exercise price 14.6p 14.6p 14.6p
1 During FY15 the vesting threshold of £9 million EBITDA was exceeded and consequently the Remuneration Committee approved the vesting of the 619,000 options.
As part of the post-IPO review of the remuneration structures, the Remuneration Committee looked at the role of long-term incentive 
plans for both the Executive Directors and other senior management within the Group. This resulted in the introduction of a new PSP 
during the financial year, as mentioned above, the terms of which are set out on page 38 for your information. Currently the PSP is not 
being used for the Executive Directors due to their pre-existing long-term incentive awards; however, it is the intention to do so in the 
future. Awards were made to certain senior managers over a total of 138,876 shares during the year as part of the Remuneration 
Committee’s ambition to retain, reward and incentivise individuals whose contribution is considered to be a significant factor in the 
Group’s overall performance. Governance
38
Focusrite Plc  
Annual Report and Accounts 2015
PSP key terms
Key term Operation within PSP
Award types Share option grants, allocation of shares or cash
Performance condition Flexible and can be set at each grant of an award. In the case of awards to Executive Directors 
the performance condition shall be set over a minimum of three years
Holding period At the Board’s discretion a post vesting holding period can be specified
Universal award limit The awards under this scheme or any other share scheme, other than awards to be satisfied by 
shares held by the EBT at the time of the IPO, shall not in aggregate be more than 10% of 
Focusrite Plc’s issued share capital over any rolling ten-year period post the IPO
Exercise price to awardee At the Board’s discretion and in any event not less than nominal value of share
Malus provisions At the Board’s discretion but it is the Committee’s intention to apply malus provisions to awards 
to Executive Directors
Clawback provisions At the Board’s discretion but it is the Committee’s intention to apply clawback provisions to 
awards to Executive Directors 
Employer NI to be paid by awardee At the Board’s discretion
Individual award limit 2x basic salary
Dividend accrual payment At the Board’s discretion
General terms The PSP contains provisions, in accordance with best practice, for good and bad leavers as well 
as a change of control
The Group also operates both approved EMI and unapproved option schemes for the benefit of the general staff of the Group. These schemes, 
which were set up prior to the IPO, form part of the programme of incentives to promote the successful recruitment, retention and rewarding of 
all employees. Currently there is an employment benefit trust (‘EBT’), also established prior to the IPO, which holds a sufficient number of shares 
to satisfy vested options under these schemes. It should be noted that awards under these schemes do not vest on performance-based criteria 
but rather as the result of spent time, typically in thirds over three years.
Dilution
All of the Group’s equity-based awards are subject to an overall limit on the number of new ordinary shares issued that will be dilutive. Other than 
awards to be satisfied by shares held by the EBT at the time of the IPO, these must not, in aggregate, exceed 10% of the Company’s issued 
share capital over any rolling ten-year period post the IPO. The following table illustrates the current maximum outstanding share awards and the 
potential net dilution:
Plan
Maximum 
number of 
shares relating 
to award
% of issued 
share capital
Dave Froker LTIP 1,897,000 3.27%
Jeremy Wilson LTIP 400,000 0.69%
Senior management PSP 138,876 0.24%
Other general employee share option plans 4,719,455 8.13%
Options outstanding at end of period 7,155,331
Less: Issued shares held in EBT
1
 (5,676,000) (9.77%)
Potential net dilution 1,479,331 2.55%
1 As at IPO.
Pension contributions
Dave Froker and Jeremy Wilson are members of a money purchase pension scheme. The Company makes defined contributions, 
currently set at 1% of gross salary including any annual bonus. The Company does not have any final salary pension schemes.
Directors’ Remuneration Report
continued Financial Statements Governance Strategic Report 
39
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Benefits
The Company provides life assurance, membership of the Group’s healthcare insurance scheme, critical illness cover and travel insurance 
to the Executive Directors. These benefits do not form part of their pensionable earnings. The value of these benefits are set out in the 
Directors’ emoluments table below.
Executive Directors’ service contracts
The service contracts for the Executive Directors are terminable by either the Company or the Executive Directors on not less than six 
months’ notice. There are no predetermined special provisions for Executive Directors with regard to compensation in the event of loss  
of office. 
Non-executive Directors’ terms of appointment
Both Non-executive Directors have letters of appointment with the Company for an initial period of three years, subject to reappointment 
at the AGM. The appointment letters for the Non-executive Directors provide that no compensation is payable on termination. The 
appointments are terminable by the Company or the non-executive Directors on six months’ notice.
Directors’ emoluments table
Executive Directors 
Salary/fees 
£’000
Other 
taxable 
benefits
£’000
Annual 
bonus 
£’000
Pension 
contribution 
£’000
Total 
£’000
Dave Froker FY14 154 2 43 – 199
FY15 154 2 36 2 194
Jeremy Wilson
1
FY14 – – – – –
FY15 161 – 66 2 229
Phil Dudderidge FY14 140 – – 200 340
FY15 168 – – – 168
Non-executive Directors
David Bezem
2
FY14 – – – – –
FY15 26 – – – 26
Paul Dean
2
FY14 – – – – –
FY15 26 – – – 26
1 Jeremy Wilson joined the Group on 9 September 2014 with a basic salary of £165,000 per annum. The annual bonus comprises a performance bonus of £35,608 and a one-off bonus 
of £30,000 in respect of the successful admission to AIM.
2 The remuneration for David Bezem and Paul Dean each comprise a basic fee of £30,000 per annum, for their roles as Non-executive Directors of the Group, and an additional £5,000 
per annum for their roles as Chairmen of Board committees. They joined on 5 December 2014. 
Prior to the incorporation, these Directors’ emoluments were paid via Focusrite Audio Engineering Limited. Since the incorporation of 
Focusrite Plc as the ultimate parent company, these emoluments have been paid by Focusrite Plc. 
Directors’ interest in shares
The interests of the Directors and their families in the shares of the Company at the date of admission to AIM and the end of the financial 
year were as follows:
0.1p ordinary 
shares as at 
31 August 2015
Outstanding options 
over shares as at 
31 August 2015
0.1p ordinary 
shares as at 
11 December 2014
Phil Dudderidge 30,249,000 – 30,249,000
Dave Froker 1,202,000 1,897,000
1
 1,202,000
Jeremy Wilson 31,746 400,000 31,746
David Bezem 7,937 – 7,937
Paul Dean 7,937 – 7,937
1 During FY15 the vesting threshold of £9 million EBITDA was exceeded and consequently the Remuneration Committee approved the vesting of 619,000 options.
Approval
This report was approved by the Directors and signed by order of the Board.
David Bezem
Chairman of the Remuneration Committee
9 December 2015 Governance
40
Focusrite Plc  
Annual Report and Accounts 2015
Statement of Directors’ Responsibilities
in respect of the Annual Report and Accounts
The Directors are responsible for preparing the Annual Report and 
the Group and Parent Company financial statements in accordance 
with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent 
Company financial statements for each financial year. As required 
by the AIM Rules of the London Stock Exchange they are required 
to prepare the Group financial statements in accordance with 
IFRSs as adopted by the EU and applicable law and have elected 
to prepare the Parent Company financial statements in accordance 
with UK Accounting Standards and applicable law (UK Generally 
Accepted Accounting Practice), including FRS 101 Reduced 
Disclosure Framework. Under company law the Directors must not 
approve the financial statements unless they are satisfied that they 
give a true and fair view of the state of affairs of the Group and 
Parent Company and of their profit or loss for that period. In 
preparing each of the Group and Parent Company financial 
statements, the Directors are required to:
• select suitable accounting policies and then apply them 
consistently;
• make judgements and estimates that are reasonable and 
prudent;
• for the Group financial statements, state whether they have 
been prepared in accordance with IFRSs as adopted by the EU;
• for the Parent Company financial statements, state whether 
applicable UK Accounting Standards have been followed, 
subject to any material departures disclosed and explained in 
the financial statements
1
; and
• prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Group and the 
Parent Company will continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Parent 
Company’s transactions and disclose with reasonable accuracy  
at any time the financial position of the Parent Company and 
enable them to ensure that its financial statements comply with  
the Companies Act 2006. They have general responsibility for 
taking such steps as are reasonably open to them to safeguard the 
assets of the Group and to prevent and detect fraud and other 
irregularities.
The Directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the Company’s 
website. Legislation in the UK governing the preparation and 
dissemination of financial statements may differ from legislation  
in other jurisdictions.
1 Large companies only. Financial Statements Governance Strategic Report 
41
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Independent Auditor’s Report to 
the Members of Focusrite Plc
We have audited the financial statements of Focusrite Plc for the 
year ended 31 August 2015 set out on pages 41 to 80. The 
financial reporting framework that has been applied in the 
preparation of the Group financial statements is applicable law and 
International Financial Reporting Standards (‘IFRSs’) as adopted 
by the EU. The financial reporting framework that has been 
applied in the preparation of the Parent Company financial 
statements is applicable law and UK Accounting Standards (UK 
Generally Accepted Accounting Practice), including FRS 101 
Reduced Disclosure Framework. 
This report is made solely to the Company’s members, as a body,  
in accordance with Chapter 3 of Part 16 of the Companies Act 
2006. Our audit work has been undertaken so that we might state 
to the Company’s members those matters we are required to state 
to them in an auditor’s report and for no other purpose. To the 
fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the 
Company’s members, as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities 
Statement set out on page 40, the Directors are responsible for 
the preparation of the financial statements and for being satisfied 
that they give a true and fair view. Our responsibility is to audit, and 
express an opinion on, the financial statements in accordance with 
applicable law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the Auditing 
Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements  
is provided on the Financial Reporting Council’s website at  
www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state  
of the Group’s and of the Parent Company’s affairs as at 
31 August 2015 and of the Group’s profit for the year then 
ended;
• the Group financial statements have been properly prepared  
in accordance with IFRSs as adopted by the EU;
• the Parent Company financial statements have been properly 
prepared in accordance with UK Generally Accepted 
Accounting Practice;
• the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies  
Act 2006
In our opinion information given in the Strategic Report and the 
Directors’ Report for the financial year for which the financial 
statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if,  
in our opinion:
• adequate accounting records have not been kept by the Parent 
Company, or returns adequate for our audit have not been 
received from branches not visited by us; or
• the Parent Company financial statements are not in agreement 
with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law 
are not made; or
• we have not received all the information and explanations we 
require for our audit.
Peter Meehan (Senior Statutory Auditor)
for and on behalf of KPMG LLP
Chartered Accountants
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
9 December 2015 Financial Statements
42
Focusrite Plc  
Annual Report and Accounts 2015
Consolidated Income Statement
For the year ended 31 August 2015
Note
2015
£’000
2014
£’000
Revenue 5 48,029  40,965 
Cost of sales (29,381) (25,068)
Gross profit  18,648  15,897 
Other gains and losses 10 –  15 
Administrative expenses (12,328) (10,202)
 Adjusted EBITDA (non-GAAP measure)  9,302  8,228 
 Depreciation and amortisation (2,278) (1,796)
 Non-underlying items (704) (722)
Operating profit  6,320  5,710 
Finance income 9 164  186 
Finance costs 11 – (86)
Profit before tax  6,484  5,810 
Income tax expense 15 (1,022) (763)
Profit for the period from continuing operations  5,462  5,047 
  
Earnings per share
From continuing operations
Basic (pence per share) 17 10.4  10.3 
Diluted (pence per share) 17 9.3  8.8  Financial Statements Governance Strategic Report 
43
Fo c us ri t e P l c  
Annual Report and Accounts 2015
 
2015
£’000
2014
£’000
Profit for the period  5,462  5,047 
Exchange differences on translation of foreign operations  –  – 
Total comprehensive income for the period 5,462  5,047 
Profit attributable to:
Equity holders of the Company  5,462  5,047 
  5,462  5,047 
Notes 1 to 36 form part of the financial statements.
Consolidated Statement of Comprehensive Income
For the year ended 31 August 2015 Financial Statements
44
Focusrite Plc  
Annual Report and Accounts 2015
Consolidated Statement of Financial Position
As at 31 August 2015
Note
2015
£’000
2014
£’000
Assets   
Non-current assets
Goodwill 18 419  419 
Other intangible assets 19 3,522  2,616 
Property, plant and equipment 20 1,323  939 
Deferred tax asset 25 –  34 
Total non-current assets  5,264  4,008 
Current assets
Inventories 22 8,633  6,596 
Trade and other receivables 23 7,737  6,367 
Other investments including derivatives 24 223  118 
Cash and cash equivalents 31 6,173  3,803 
Total current assets  22,766  16,884 
Total assets  28,030  20,892 
Equity and liabilities
Capital and reserves
Share capital 28 58  52 
Merger reserve 29 14,595 –
Merger difference reserve 29 (13,147) 1,448 
Translation reserve 29 (6) (6)
Treasury share reserve 29 (6) – 
Retained earnings 30 16,984  11,714 
Equity attributable to owners of the Company 18,478  13,208 
Total equity  18,478  13,208 
Current liabilities  
Trade and other payables 27 8,406  6,688 
Current tax liabilities  403  432 
Total current liabilities  8,809  7,120 
Non-current liabilities
Deferred tax 25 743  564 
Total liabilities  9,552  7,684 
Total equity and liabilities  28,030  20,892 
The financial statements were approved by the Board of Directors and authorised for issue on 9 December 2015. They were signed on 
its behalf by:
Dave Froker    Jeremy Wilson
Chief Executive Officer   Chief Financial Officer
The notes on pages 47 to 73 form part of the financial statements. Financial Statements Governance Strategic Report 
45
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Consolidated Statement of Changes in Equity
For the year ended 31 August 2015
Share  
capital
£’000
Merger 
reserve
£’000
Merger 
difference 
reserve
£’000
Translation 
reserve
£’000
Treasury 
share  
reserve
£’000
Share-based 
payment 
reserve
£’000
Retained 
earnings
£’000
Total 
£’000
Balance at 1 September 2013 49  – 1,218 (6) –  128  10,771  12,160 
Profit for the period –  –  –  –  –  –  5,047  5,047 
Total comprehensive income for the period –  –  –  –  –  –  5,047  5,047 
Transactions with owners of the Company:     
Issue of ordinary shares 3  – 230 –  –  –  –  233 
Share-based payments –  –  –  –  –  12  –  12 
Dividends  –  –  –  –  –  – (4,244) (4,244)
Balance at 31 August 2014 52 – 1,448 (6) –  140  11,574  13,208 
Profit for the period –  –  –  –  –  –  5,462  5,462 
Total comprehensive income for the period  –  –  –  –  –  –  5,462  5,462 
Transactions with owners of the Company:
Issue of ordinary shares 6  –  –  –  –  –  –  6 
Ordinary shares issued to the EBT –  –  –  – (6) –  – (6)
Share for share exchange – 14,595 (14,595) – – – – –
Share-based payments –  –  –  –  –  122  –  122 
Dividends – – – – – – (314) (314)
Balance at 31 August 2015 58 14,595 (13,147) (6) (6) 262  16,722  18,478 
The notes on pages 47 to 73 form part of the financial statements. Financial Statements
46
Focusrite Plc  
Annual Report and Accounts 2015
Consolidated Cash Flow Statement
For the year ended 31 August 2015
 
 
Note
2015
£’000
2014
£’000
Net cash from operating activities 31  6,243  8,804 
Investing activities   
Purchases of property, plant and equipment 20 (782) (783)
Investment in intangible assets 19 (2,778) (1,887)
Proceeds from disposal of non-current assets  1  100 
Net cash from/(used in) investing activities (3,559) (2,570)
Financing activities   
Issue of equity shares – 233 
Equity dividends paid 16 (314) (4,244)
Net cash (used in) financing activities (314) (4,011)
Net increase/(decrease) in cash and cash equivalents  2,370  2,223 
Cash and cash equivalents at beginning of year  3,803  1,580 
Cash and cash equivalents at end of year  31  6,173  3,803  Financial Statements Governance Strategic Report 
47
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Notes to the Financial Statements
For the year ended 31 August 2015
1 General information
Focusrite Plc (the ‘Company’), is a company incorporated in the United Kingdom. The consolidated financial statements (‘financial 
statements’) as at and for the year ended 31 August 2015 comprised the Company and its subsidiaries (together referred to as  
the ‘Group’). 
The Group is a business engaged in the development, manufacture and marketing of professional audio and electronic music products.
Basis of preparation
Statement of compliance
The financial statements for the year ended 31 August 2015 are presented in pounds Sterling (‘GBP’). This is the functional currency of 
the Group. The financial statements have been prepared in accordance with the International Financial Reporting Standards (‘IFRS’), 
International Accounting Standards (‘IAS’) and interpretations currently endorsed by the International Accounting Standards Board 
(‘IASB’) and its committees as adopted by the EU and as required to be adopted by UK companies.
The Company has elected to prepare its Parent Company accounts in accordance with Financial Reporting Standard 101 Reduced 
Disclosure Framework (‘FRS 101’).
The Group has chosen to take advantage of the exemption available under IFRS 1, ‘First time adoption of IFRS’, for reassessing 
acquisitions completed before 30 March 2006. The goodwill arising on business combinations of the Group prior to March 2006 remains 
unchanged up to 31 August 201 1 and is subject to an annual impairment review.
These financial statements were authorised for issue by the Company’s Board of Directors on 9 December 2015.
2 Adoption of new and revised standards
In the current year, the Group has applied a number of amendments to IFRSs that are mandatorily effective for an accounting period that 
begins on or after 1 January 2014. Their adoption has not had any material impact on the disclosures or on the amounts reported in 
these financial statements.
Amendments to IFRS 10, IFRS 12 and IAS 27 ‘Investment Entities’ – As the Company is not an investment entity (assessed based on  
the criteria set out in IFRS 10 as at 1 January 2014), the adoption of the amendments has had no impact on the disclosures or on the 
amounts recognised in the Group’s consolidated financial statements.
Amendments to IAS 36 ‘Recoverable Amount Disclosures for Non-financial Assets’ — These new disclosures include the fair value 
hierarchy, key assumptions and valuation techniques used which are in line with the disclosure required by IFRS 13 ‘Fair Value 
Measurement.’ The application of these amendments has had no material impact on the disclosures in the Group’s consolidated  
financial statements.
IFRIC 21 ‘Levies’ – The interpretation provides guidance on how different levy arrangements should be accounted for; in particular, it 
clarifies that neither economic compulsion nor the going concern basis of financial statements preparation implies that an entity has a 
present obligation to pay a levy that will be triggered by operating in a future period. The application of this interpretation has had no 
material impact on the disclosures or on the amounts recognised in the Group’s consolidated financial statements.
Amendments to IAS 32 ‘Offsetting Financial Assets and Financial Liabilities’ — As the Group does not have any financial assets or 
financial liabilities that qualify for offset, the adoption of the amendments has had no impact on the disclosures or on the amounts 
recognised in the Group’s consolidated financial statements.
IFRS 1 1 (amendments) ‘Accounting for Acquisitions of Interests in Joint Operations’ — As the Group does not have any interest in joint 
operations, the adoption of the amendments has had no impact on the disclosures or on the amounts recognised in the Group’s 
consolidated financial statements.
IFRS 10 and IAS 28 (amendments) ‘Sale or Contribution of Assets between an Investor and its Associate or Joint Venture’ — The 
application of these amendments has had no material impact on the disclosures in the Group’s consolidated financial statements.
Standards not affecting the reported results or the financial position
At the date of authorisation of these financial statements, the following standards and interpretations which have not been applied  
in these financial statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
• IFRS 9 ‘Financial Instruments’
• IFRS 15 ‘Revenue from Contracts with Customers’
The Directors intend to assess the impact of adopting these new or amended standards and interpretations. Financial Statements
48
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
3 Significant accounting policies
The accounting policies set out below have been applied consistently for all periods presented in the financial statements.
Any standards and interpretations that have been issued but are not yet effective, and that are available for early application, have not 
been applied by the Group in these financial statements. 
Application of these standards and interpretations is not expected to have a material effect on the financial statements in the future.
Basis of consolidation
On 1 1 December 2014, Focusrite Plc was admitted to trading on AIM. In preparation for the IPO, the Group was restructured. On 
4 December 2014, the Company obtained control of 100% of the share capital of Focusrite Audio Engineering Limited in a share for 
share exchange, thereby inserting Focusrite Plc as the Parent Company of the Group. There were no changes in rights or proportion  
of control exercised as a result of this transaction.
Although the share for share exchange resulted in a change of legal ownership, in substance the financial statements reflect the 
continuation of the pre-existing Group, headed by Focusrite Audio Engineering Limited.
As a result, the comparative figures for the year ended 31 August 2014 presented in these financial statements are the consolidated 
results of Focusrite Audio Engineering Limited. For the detailed impact on the earnings per share calculation, see note 17.
The statement of financial position at 31 August 2014 reflects the share capital structure of Focusrite Audio Engineering Limited. The 
statement of financial position at 31 August 2015 presents the legal change in ownership of the Group, including the share capital of 
Focusrite Plc and the merger reserve arising as a result of the share for share exchange transaction.
The basis for the comparative financial information for the year ended 31 August 2014 was the audited financial statements for Focusrite 
Audio Engineering Limited, prepared using UK Generally Accepted Accounting Practices. The historical financial information was 
converted to International Financial Reporting Standards as adopted by the EU (‘EU IFRS’) for publication in the Admission Document, 
dated 5 December 2014, on which an unqualified accountant’s report opinion was issued. Hence the comparative financial information 
has been shown as audited.
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating 
policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting 
rights that are currently exercisable. The acquisition date is the date on which control is transferred to the acquirer. The financial 
statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date 
control ceases.
Going concern
The Group’s business activities and position in the market are described in the Strategic Report. The Directors believe that the Group is 
well placed to manage its business risks successfully despite the current uncertainties within the global economy. The Group has 
considerable financial resources, ongoing revenue streams and a broad spread of customers. As a consequence of these factors and 
having reviewed the forecasts for the coming year, the Directors have a reasonable expectation that the Group has adequate resources 
to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in 
preparing the annual financial statements. Further detail is contained in the Strategic Report on pages 1 to 29.
Earnings per share
The Group presents basic and diluted earnings per share (‘EPS’) data for its ordinary shares. Basic EPS is calculated by dividing the profit 
attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. For diluted EPS, 
the weighted average number of ordinary shares is adjusted for the dilutive effect of potential ordinary shares arising from the exercise of 
granted share options.
As explained in the basis of consolidation accounting policy, the Group’s financial statements reflect the continuation of the pre-existing 
Group headed by Focusrite Audio Engineering Limited. 
For the period reported, the Group has chosen to present an adjusted EPS (note 17) calculation with profit adjusted for non-underlying 
items to aid comparability and to provide a consistent measure of performance.  Financial Statements Governance Strategic Report 
49
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Goodwill
Goodwill arising in a business combination is recognised as an asset at the date that control is acquired (the acquisition date). Goodwill  
is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the 
fair value of the acquirer’s previously held equity interest (if any) in the entity over the net of the acquisition-date amounts of the 
identifiable assets acquired and the liabilities assumed.
If, after reassessment, the Group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration 
transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest in 
the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to 
the Group’s cash-generating units expected to benefit from synergies arising from the combination. Cash-generating units to which 
goodwill has been attributed under IFRS 3 ‘Business Combinations’ are tested for impairment annually, or more frequently when there is 
an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the 
unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets 
of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not 
reversed in a subsequent period.
On disposal of a subsidiary, the attributable amount of goodwill is included in determining profit or loss on disposal.
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course  
of the Group’s activities. Revenue is shown net of sales taxes and discounts.
The Group recognises revenue when all the following conditions are satisfied: 
• the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
• the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over 
the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the entity; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue recognised in the income statement but not yet invoiced is held on the balance sheet within ‘Trade and other receivables’. 
Revenue invoiced but not yet recognised in the income statement is held on the balance sheet within ‘Deferred revenue’. 
Revenue is classified as follows:
Sales of goods
Revenue from the supply of goods is recognised as soon as all substantial risks and rewards relating to the title of the goods have been 
transferred to the customer.
Interest income
Interest income is recognised when it is probable that the economic benefits will flow to the Group and the amount of revenue can be 
measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate 
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that 
asset’s net carrying amount on initial recognition.
Non-underlying items
Non-underlying items are those items that are unusual because of their size, nature or incidence. The Directors consider that these items 
should be separately identified within their relevant income statement category to enable a full understanding of the Group’s result. Financial Statements
50
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
Leasing
The Group’s leases are currently all operating leases (leases in which a significant portion of the risks and rewards of ownership are 
retained by the lessor). Rentals payable under operating leases are charged to the income statement on a straight-line basis over the 
term of the relevant lease (net of any incentive received from the lessor).
Foreign currencies 
The individual financial statements of each subsidiary are presented in the currency of the primary economic environment in which it 
operates (its functional currency). Sterling is the predominant functional currency of the Group and presentation currency for the 
consolidated financial information.
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional currency 
(foreign currencies) are recognised at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, 
monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-
monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the 
fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences are recognised in profit or loss in the period in which they arise except for:
• exchange differences on transactions entered into to hedge certain foreign currency risks (see below under financial  
instruments/hedge accounting); and
• exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor 
likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other 
comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the net investment.
For the purpose of presenting consolidated financial information, the assets and liabilities of the Group’s foreign operations are translated 
at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the 
period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the date of the transactions 
are used. Exchange differences arising, if any, are recognised in the income statement. 
Retirement benefit costs 
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made to state-
managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Group’s obligations under 
the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.
Equity-settled share-based payments
The Group issues equity-settled payments to certain employees (including Directors). Where employees are rewarded using share-based 
payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the instrument granted to the 
employee. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, 
profitability and sales growth targets).
Share options are valued at the date of grant using the Black-Scholes option pricing model for options with non-market vesting conditions 
attached and a simulation model for options with market vesting conditions attached, and are charged to operating profit over the vesting 
period of the award with a corresponding credit to the ‘other reserves’.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period based on the best 
available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the 
number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the 
current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to 
that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital and, where 
appropriate, share premium account.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never 
taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by 
the balance sheet date.
3 Significant accounting policies continued Financial Statements Governance Strategic Report 
51
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the 
consolidated financial information and the corresponding tax bases used in the computation of taxable profit, and is accounted for using 
the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax 
assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences 
can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or 
from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the 
taxable profit nor the accounting profit.
Deferred tax liabilities are only recognised for taxable temporary differences arising on investments in subsidiaries, where the Group is 
unable to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the 
foreseeable future. 
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable 
that sufficient taxable profits will be available to allow all or part of the asset to be recovered in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised 
based on tax laws and rates that have been enacted at the balance sheet date. Deferred tax is charged or credited in the income 
statement, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also 
dealt with in other comprehensive income.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax 
liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets 
and liabilities on a net basis.
Tangible and intangible assets
Property, plant and equipment
The Group has held no land and buildings for the period covered by the consolidated financial information.
Other items of property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss.
Depreciation is recognised so as to write off the cost or valuation of assets less residual value over their useful lives, using the straight-
line method, on the following bases:
Plant, equipment and tooling 3 to 5 years
Computer equipment 2 years
Fixtures and fittings 5 years
Leasehold improvements 5 to 8 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying amount 
of the asset and is recognised in income on the transfer of the risks and rewards of ownership.
The Group has no class of tangible fixed asset that has been revalued. On transition to IFRS the net book values recorded at 
1 September 2012 have been applied and these are based on historic cost or fair value recognised at the date of acquisition. 
Intangible assets
Intangible assets are amortised over the following periods on a straight-line basis:
Development expenditure 3 years 
Purchased intellectual property  2 years
Licences 2 to 5 years
Computer software 2 years
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from the Group’s development of new and enhanced products is recognised only if all  
of the following conditions are met:
• an asset is created that can be identified (such as product designs and new processes);
• it is probable that the asset created will generate future economic benefits; and
• the costs of developing this asset can be measured reliably.
Where no internally-generated intangible asset can be recognised, the expenditure is recognised as an expense in the period in which  
it is incurred.  Financial Statements
52
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any 
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to 
determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the 
Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. An intangible asset with an indefinite useful life 
is tested for impairment at least annually and whenever there is an indication that the asset may be impaired. Capitalised development costs are 
calculated by reference to the Group’s product development department and will therefore be tested for impairment at cash-generating unit level.
Recoverable amount is the higher of: (i) fair value less costs to sell and (ii) value in use. In assessing value in use, the estimated future 
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value 
of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of 
the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, 
unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease to the 
extent that the revaluation balance is greater than the impairment loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised 
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that 
would have been determined had no impairment loss been recognised in prior years for the asset (or cash-generating unit). A reversal of 
an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the 
reversal of the impairment loss is treated as a revaluation increase.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour 
costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated 
using either the First-In-First-Out method or, for fast-moving items, the average cost method. Net realisable value represents the 
estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Trade and other receivables
Trade debtors, which generally have 30–90 day terms, are recognised and carried at the lower of their original invoiced value and 
recoverable amount. Provision for impairment is made through profit or loss when there is objective evidence that the Company will not be 
able to recover balances in full. Balances are written off when the probability of recovery is assessed as being remote.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual 
provisions of the instrument.
Financial assets
All financial assets are normally recognised and derecognised on a trade date basis where the purchase or sale of a financial asset is 
under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are 
initially measured at fair value, plus transaction costs, except for those financial assets classified as at fair value through profit or loss, 
which are initially measured at fair value. On derecognition, however, where a specific transaction is entered into with a counterparty that 
is judged to carry a high credit or liquidity risk, then management may determine that derecognition of the financial asset shall be based 
on settlement date rather than trade date, with any realised gain or loss taken to profit and loss on date of settlement.
Financial assets are classified into the following specified categories: financial assets at ‘fair value through profit or loss’ (‘FVTPL ’), 
‘held-to-maturity’ investments, ‘available-for-sale’ (‘AFS’) financial assets and ‘loans and receivables’. The classification depends on the 
nature and purpose of the financial assets and is determined at the time of initial recognition.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over 
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and 
points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through 
the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. 
3 Significant accounting policies continued Financial Statements Governance Strategic Report 
53
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Classes of financial asset
Financial assets at FVTPL
Financial assets are classified as at FVTPL when the financial asset is either held for trading or is designated as at FVTPL.
A financial asset is classified as held for trading if:
• it has been acquired principally for the purpose of selling in the near term; or
• on initial recognition it is a part of a portfolio of identified financial instruments that the Group manages together and has a recent 
actual pattern of short-term profit-taking; or 
• it is a derivative that is not designated and effective as a hedging instrument.
A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or 
• the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is 
evaluated on a fair value basis, in accordance with the Group’s documented risk management or investment strategy, and information 
about the grouping is provided internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and IAS 39 ‘Financial Instruments: Recognition and 
Measurement’ permits the entire combined contract (asset or liability) to be designated as at FVTPL.
Financial assets at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net 
gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘other 
gains and losses’ line in the income statement. Fair value is determined in the manner described in note 34.
Held-to-maturity investments
The Group holds no financial assets classified as held-to-maturity investments. 
Available for sale financial assets
The Group holds no financial assets classified as available for sale. 
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are 
classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any 
impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition 
of interest would be immaterial.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each balance sheet date. Financial assets are 
impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial 
asset, the estimated future cash flows of the investment have been affected. 
For listed and unlisted equity investments classified as AFS, a significant or prolonged decline in the fair value of the security below its 
cost is considered to be objective evidence of impairment. 
For all other financial assets, including finance lease receivables, objective evidence of impairment could include:
• significant financial difficulty of the issuer or counterparty; or
• default or delinquency in interest or principal payments; or
• it becoming probable that the borrower will enter bankruptcy or financial reorganisation.
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in 
addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the 
Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit 
period, as well as observable changes in national or local economic conditions that correlate with default on receivables.
For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and 
the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade 
receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered 
uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against 
the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. Financial Statements
54
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
Financial liabilities 
Financial liabilities are classified as either financial liabilities ‘at FVTPL ’ or ‘other financial liabilities’.
Financial liabilities at FVTPL 
Financial liabilities are classified as at FVTPL when the financial liability is either held for trading or it is designated as at FVTPL.
A financial liability is classified as held for trading if:
• it has been incurred principally for the purpose of repurchasing it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has a recent actual 
pattern of short-term profit-taking; or 
• it is a derivative that is not designated and effective as a hedging instrument. 
A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or 
• the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is 
evaluated on a fair value basis, in accordance with the Group’s documented risk management or investment strategy, and information 
about the grouping is provided internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and IAS 39 ‘Financial Instruments: Recognition and 
Measurement’ permits the entire combined contract (asset or liability) to be designated as at FVTPL.
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The 
net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘other gains and 
losses’ line in the income statement. Fair value is determined in the manner described in note 34. 
Other financial liabilities 
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. 
Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense 
recognised on an effective yield basis. 
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over 
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life 
of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire.
Derivative financial instruments
The Group is able to enter into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange 
rate risk, including foreign exchange forward contracts, interest rate swaps and cross-currency swaps. Further details of derivative 
financial instruments are disclosed in note 34.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their 
fair value at each balance sheet date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is 
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of 
the hedge relationship. The Group designates certain derivatives as either hedges of the fair value of recognised assets or liabilities or 
firm commitments (fair value hedges), hedges of highly probable forecast transactions or hedges of foreign currency risk of firm 
commitments (cash flow hedges), or hedges of net investments in foreign operations.
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as a 
financial liability. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is 
more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets 
or current liabilities.
3 Significant accounting policies continued Financial Statements Governance Strategic Report 
55
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Hedge accounting
Up to 31 August 2015 the Group has not adopted hedge accounting for the foreign currency forward contracts purchased to hedge 
against short-term movements in cash flows of the underlying hedged item. The exposure has been short-term and involves relatively  
few but highly predictable transactions. Whilst the exposure to foreign currency risk remains relatively low, the cost of implementing the 
required controls and administration processes to perform hedge accounting is judged to be uneconomic at present. Should these 
circumstances change the Group will review the adoption of hedge accounting.
Notes 24 and 34 set out details of the fair values of any derivative instruments used for hedging purposes. 
4 Critical judgements and estimations in applying the Group’s accounting policies
The following are the critical judgements and estimations that the Directors have made in the process of applying the Group’s accounting 
policies and that have the most significant effect on the amounts recognised in the consolidated financial information.
Revenue recognition
In making its judgement, management considered the detailed criteria for the recognition of revenue set out in IAS 18. Management is 
satisfied that the significant risks and rewards of ownership are transferred and that the recognition of revenue upon despatch is appropriate.
Inventory valuation
The Group has an inventory provisioning policy that reflects the fact that there are strong physical controls carried out by the independent 
service provider which manages the Group’s inventory resulting in low inventory loss or damage. Also, the levels of inventory are managed 
with the aim that inventory is sold before it becomes too old.
Share option scheme 
The Group has established a share option scheme known as the Enterprise Management Incentive (the ‘Scheme’). The fair value of the 
options issued under the Scheme is derived by the Company using the Black-Scholes model and the resultant values are allocated to the 
income statement over the period of vesting. In arriving at the fair value using this model, the Company calculates a number of inputs to 
the model, including estimated share price volatility.
Further details regarding the Scheme are set out in note 32.
Recoverability of internally-generated intangible asset
Management reconsidered the recoverability of its internally-generated intangible asset for development costs which is included in the 
balance sheet at 31 August 2015 at £3,419,000 (2014: £2,568,000). These projects continue to progress in a very satisfactory manner, 
and customer reaction has reconfirmed management’s previous estimates of anticipated revenues from the project. 
Management is confident that the carrying amount of the asset will be recovered in full. This situation will be closely monitored, and 
adjustments made in future periods if future market activity indicates that such adjustments are appropriate.
Impairment of goodwill
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has 
been allocated. The value in use calculation requires an entity to estimate the future cash flows expected to arise from the cash-
generating unit and a suitable discount rate in order to calculate present value. The carrying amount of goodwill at 31 August 2015 was 
£419,000 (2014: £419,000). Further details are given in note 18.
Allowance for doubtful debts
Management undertake a review of all new customers and a periodic review of existing customers to determine whether specific risks  
of default exist. A substantial proportion of the Group’s trade receivables ledger is covered by credit insurance. Beyond identification of 
specific risks, management undertake periodic reviews into the calculation of allowances for doubtful debts to ensure historic trends 
continue to provide a basis for determining a reliable estimate for doubtful debts.
5 Revenue
An analysis of the Group’s revenue is as follows:
Year ended 31 August
2015
£’000
2014
£’000
Continuing operations
USA 18,498  14,307 
Europe, Middle East and Africa 21,460  19,612 
Rest of World 8,071  7,046 
Consolidated revenue  48,029  40,965 Financial Statements
56
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
6 Business segments
Information reported to the Group’s Chief Executive (who has been determined to be the Group’s Chief Operating Decision Maker) for the 
purposes of resource allocation and assessment of segment performance is focused on the main product groups which Focusrite sells. 
The Group’s reportable segments under IFRS 8 are therefore as follows:
Focusrite – Sales of Focusrite branded products
Novation – Sales of Novation branded products
Distribution – Distribution of third party brands including KRK speakers, Ableton, Stanton, Cerwin Vega and Cakewalk
Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment:
 
Year ended 31 August 
2015
£’000
2014
£’000
Revenue from external customers
Focusrite  31,187  26,820 
Novation 14,169  11,544 
Distribution 2,673  2,601 
Total 48,029  40,965 
Segment profit 
Focusrite  14,221  12,814 
Novation 6,842  6,270 
Distribution 846  918 
 21,909  20,002 
Central distribution costs and administrative expenses (14,885) (13,570)
 Adjusted operating profit before non-underlying items 7,024  6,432 
 Non-underlying items (704) (722)
Operating profit 6,320  5,710 
Finance income 164 186
Finance costs – (86)
Profit before tax 6,484  5,810 
Tax (1,022) (763)
Profit after tax 5,462  5,047 
The accounting policies of the reportable segments are the same as the Group’s accounting policies described in note 3. Segment profit 
represents the profit earned by each segment without allocation of the share of central administration costs including Directors’ salaries, 
investment revenue and finance costs, and income tax expense. This is the measure reported to the Group’s Chief Executive for the 
purpose of resource allocation and assessment of segment performance.
Central administration costs comprise principally the employment-related costs and other overheads incurred by Focusrite and its US 
subsidiary, net of inter-Company commission income. Also included within central administration costs is the charge relating to the share 
option scheme (note 32) of £122,000 for the year ended 31 August 2015 (2014: £12,000).
Segment net assets and other segment information
Management does not make use of segmental data relating to net assets and other balance sheet information for the purposes of 
monitoring segment performance and allocating resources between segments. Accordingly, other than the analysis of the Group’s non-
current assets by geographical location shown below, this information is not available for disclosure in the consolidated financial information.
The Group’s non-current assets, analysed by geographical location were as follows:
 2015
£’000
2014
£’000
Non-current assets
USA 29  14 
Europe, Middle East and Africa 4,683  3,714 
Rest of World 552  280 
Total non-current assets 5,264  4,008  Financial Statements Governance Strategic Report 
57
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Revenues from major products and services
The Group’s revenues from its major products and services are disclosed in note 5.
Information about major customers
Included in revenues shown for 2015 is £18.5 million (2014: £14.3 million) attributed to the Group’s largest customer, American Music  
& Sound. Amounts owed at end of year is £2.7 million (2014: £3.2 million).
7 Profit for the year
Profit for the year has been arrived at after charging (crediting):
 Note
Continuing operations 
Year ended 31 August
2015
£’000
2014
£’000
Net foreign exchange (gains)/losses 9,11 (53) 86 
Research and development costs 743  620 
IPO related costs 14 704  552 
Depreciation and impairment of property, plant and equipment 20 374  423 
Profit on disposal of property, plant and equipment (1) (100)
Amortisation of intangibles 19 1,902  1,461 
Operating lease rental expense 26 156  130 
Cost of inventories recognised as an expense 25,606  20,681 
Staff costs 12 6,059  5,656 
Impairment loss recognised on trade receivables 23 12  41 
Change in fair value of financial instruments 34 (105) (127)
Share-based payments charge to profit and loss 32 122  12 
8 Auditor’s remuneration
 
 Continuing operations 
Year ended 31 August
2015
£’000
2014
£’000
Fees payable to the Company’s auditors for the audit of Company’s annual accounts 20 –
Fees payable to the company’s auditor and its associates for other services: 
Audit of the accounts of subsidiaries pursuant to legislation 29 19
Audit-related assurance services 9 –
Other assurance services 313 219
Tax compliance services 11 5
 382 243
9 Finance income 
 
 Continuing operations 
 Year ended 31 August
2015
£’000
2014
£’000
Interest on loan to related party –  53 
Bank deposit interest 6  6 
Exchange gain 53  – 
Change in fair value of financial instrument 105  127 
Finance income 164  186
10 Other gains and losses
 
 Continuing operations 
 Year ended 31 August
2015
£’000
2014
£’000
Rent receivable –  15 
  –  15  Financial Statements
58
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
11 Finance costs
 
 Continuing operations 
 Year ended 31 August
2015
£’000
2014
£’000
Exchange loss – 86 
Finance costs – 86
Other financial expenses include bank charges arising on transactions executed and completed in the corresponding period. 
12 Staff costs
 
 Continuing operations 
 Year ended 31 August
2015
£’000
2014
£’000
Wages and salaries 5,250  4,758 
Social security costs 587  545 
Other pension costs 222  353 
  6,059  5,656 
The average number of persons, including Executive Directors, employed by the Group during the year was as follows:
 
 
2015
Number
2014
Number
Research and development 50  41 
Sales and marketing 43  39 
Operations 39  32 
Administration and central 23  18 
  155  130 
13 Directors’ remuneration
A detailed analysis of Directors’ remuneration, including salaries, bonuses and long-term incentives, and the highest paid Director, is provided 
in the remuneration table in the Directors’ Remuneration Report, which forms part of these financial statements (page 39).
14 Non-underlying items
In December 2014, the Group floated on the London Stock Exchange AIM market. Non-recurring IPO related costs totalled £704,000, 
which were charged to the income statement (31 August 2014: 552,000). In addition, in 2014 the Group made a non-recurring pension 
contribution of £170,000 to the Chairman.
15 Tax
 
Year ended 31 August
2015
£’000
2014
£’000
Corporation tax charges:  
Overprovision in prior year (69)  – 
Current year 878  627 
  809  627 
Deferred taxation  
Current year 213  136 
  1,022  763 
Corporation tax is calculated at 20.58% (2014: 22.17%) of the estimated taxable profit for the year. Taxation for the US subsidiary is 
calculated at the rates prevailing in the respective jurisdiction. Financial Statements Governance Strategic Report 
59
Fo c us ri t e P l c  
Annual Report and Accounts 2015
The tax charge for each year can be reconciled to the profit per the income statement as follows:
Year ended 31 August
2015
£’000
2014
£’000
Current taxation  
Profit before tax on continuing operations  6,484  5,810 
Tax at the UK corporation tax rate of 20.58% (2014: 22.17%) 1,334  1,288 
Effects of:  
Expenses that are not deductible in determining taxable profit 564  128 
R&D tax credit (816) (633)
Overseas tax 36  22 
Prior period adjustment (69)  – 
Other reconciling items –  1 
Effect of change in standard rate of corporation tax (27) (43)
Current tax charge for period 1,022  763 
16 Dividends
The following equity dividends have been declared and paid.
Year ended 31 August
2015
£’000
2014
£’000
0.6p per qualifying ordinary share (2014: equivalent to 8.1p per qualifying ordinary share) 314  4,244 
  314  4,244
During the year, the Company paid an interim dividend in respect of the year ended 31 August 2015 of 0.6 pence per share, amounting to 
£314,394.
On 9 December 2015, the Directors recommended a final dividend of 1.2 pence per share, making a total of 1.8 pence per share for the year.
17 Earnings per share
Reported earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings 
Year ended 31 August
2015
£’000
2014
£’000
Earnings for the purposes of basic and diluted earnings per share being net profit for the period 5,462  5,047 
    
Number of shares
Year ended 31 August 
2015
Number
’000
2014
Number
’000
Weighted average number of ordinary shares for the purposes of basic earnings per share calculation 52,399  49,208 
Effect of dilutive potential ordinary shares 6,416  8,143 
Weighted average number of ordinary shares for the purposes of diluted earnings per share calculation 58,815  57,351 
  
Earnings per share Pence Pence
Basic earnings per share 10.4 10.3
Diluted earnings per share 9.3 8.8
At 31 August 2015, the total number of ordinary shares issued and fully paid was 58,075,000 as shown in note 28. This included 
5,676,000 shares held by the Employee Benefit Trust to satisfy options vesting in future years. The operation of this Employee Benefit 
Trust is funded by the Group so the EBT is required to be consolidated, with the result that the weighted average number of ordinary 
shares for the purpose of the basic earnings per share calculation is the net of the total number of shares in issue (58,075,000) less the 
number of shares held by the Employee Benefit Trust (5,676,000). It should be noted that the only right relinquished by the Trustees of 
the Employee Benefit Trust is the right to receive dividends. In all other respects, the shares held by the Employee Benefit Trust have full 
voting rights.  Financial Statements
60
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
The effect of dilutive potential ordinary share issues is calculated in accordance with IAS 33 and arises from the employee share options 
currently outstanding, adjusted by the profit element as a proportion of the average share price during the period. Diluted EPS in 2014 
has not been restated for any subsequent changes in assumptions made in calculating the effect of dilutive potential ordinary share 
issues, such as average share price.
Adjusted earnings per share
Earnings 
Year ended 31 August
2015
£’000
2014
£’000
Profit for the financial period 5,462  5,047 
Non underlying items 704  722 
Total underlying profit for adjusted earnings per share calculation 6,166  5,769 
    
Number of shares
Year ended 31 August 
2015
Number
’000
2014
Number
’000
Weighted average number of ordinary shares for the purposes of basic earnings per share calculation 52,399  49,208 
Effect of dilutive potential ordinary shares 6,416  8,143 
Weighted average number of ordinary shares for the purposes of diluted earnings per share calculation 58,815  57,351 
  
    
Earnings per share Pence Pence
Adjusted basic earnings per share 11.8 11.7
Adjusted diluted earnings per share 10.5 10.1
18 Goodwill
 
 
Total
£’000
Cost 
At 1 September 2013 419 
At 31 August 2014 419 
At 31 August 2015 419 
  
No impairment losses have been required on goodwill amounts recognised in the Group to date.
  
Carrying amount 
At 31 August 2013 419 
At 31 August 2014 419 
At 31 August 2015 419 
Goodwill arose as a result of a transfer on 31 August 2006 of the assets and liabilities of Novation Digital Music Systems Limited for a 
consideration of £71 1,000. Accordingly, the whole of the value of goodwill is attributable to the Novation operating segment and cash 
generating unit (‘CGU’).
The Group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired. The 
recoverable amount of the CGU is determined using ‘value in use’ calculations. The key assumptions for the value in use calculations are 
those regarding the discount rates, growth rates and expected changes to earnings before interest, tax, depreciation and amortisation 
(EBITDA is used as a proxy of free cash flows) as well as the level of capital expenditure required to maintain the existing business into 
the future. These assumptions are reviewed and revised annually in light of current economic conditions and the future outlook for each 
CGU. Management estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money and 
the risks specific to each CGU. This has been set at 10%. 
17 Earnings per share continued Financial Statements Governance Strategic Report 
61
Fo c us ri t e P l c  
Annual Report and Accounts 2015
The growth rates used are based on management’s assessment of the cash flow forecasts over the medium term. The growth for the 
next five years is based on the lower of 2% and either the rate forecast for year five or the average annual growth rate derived over the 
initial five-year term and does not exceed the average long-term growth rate for the relevant economies in which these CGUs operate. 
These are based on conservative estimates of the Group’s ability to participate in growth expected in the industry and a modest dilution 
in market share as more competitors enter the market over the next ten years. Changes in selling prices and direct costs are based on 
past practices and expectations of future changes in the market. 
The value of goodwill recognised in the accounts has been compared to the derived value in use. Throughout the three-year period the 
goodwill carrying value has been below its value in use. The Group has conducted a sensitivity analysis on the impairment test results for 
each CGU and concluded no material sensitivity exists in these calculations.
19 Other intangible assets
 
 
Intellectual 
property
£’000
Development 
costs
£’000
Licences 
£’000
Computer 
software
£’000
Total
£’000
Cost     
At 1 September 2013 160  5,372  –  –  5,532 
Additions 22  1,865  –  –  1,887 
At 31 August 2014 182  7,237  –  –  7,419 
Additions 72  2,667  29  10  2,778 
Transfers between classes (182) –  182  –  – 
Transfer from property, plant and equipment –  –  –  97  97 
At 31 August 2015 72  9,904  211  107  10,294 
Depreciation     
At 1 September 2013 126  3,216  –  –  3,342 
Charge for the year 8  1,453  –  –  1,461 
At 31 August 2014 134  4,669  –  –  4,803 
Charge for the year 30  1,816  31  25  1,902 
Transfers between classes (134) –  134  –  – 
Transfer from property, plant and equipment –  –  –  67  67 
At 31 August 2015 30  6,485  165  92  6,772 
      
Carrying amount     
At 31 August 2015 42  3,419  46  15  3,522 
At 31 August 2014 48  2,568  –  –  2,616 
At 31 August 2013 34  2,156  –  –  2,190 
  Financial Statements
62
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
20 Property, plant and equipment
Plant, tooling 
equipment 
and machinery
£’000
Fixtures, 
fittings & 
leasehold 
improvements
£’000
Computer 
equipment
£’000
Total
£’000
Cost    
At 1 September 2013 2,052  442  658  3,152 
Additions 217  458  108  783 
Exchange differences – (2) (3) (5)
Disposals –  – (3) (3)
At 31 August 2014 2,269  898  760  3,927 
Additions 540  133  109  782 
Transfer to other intangible assets –  – (97) (97)
Disposals (2) – (8) (10)
At 31 August 2015 2,807  1,031  764  4,602 
Accumulated depreciation and impairment    
At 1 September 2013 1,592  392  588  2,572 
Charge for the year 319  28  76  423 
Exchange differences – (2) (2) (4)
Eliminated on disposals –  – (3) (3)
At 31 August 2014 1,911  418  659  2,988 
Charge for the year 215  90  69  374 
Exchange differences – (2) (4) (6)
Transfer to other intangible assets –  – (67) (67)
Eliminated on disposals (2) – (8) (10)
At 31 August 2015 2,124  506  649  3,279 
     
Carrying amount    
At 31 August 2015 683  525  115  1,323 
At 31 August 2014 358  480  101  939 
At 31 August 2013 460  50  70  580 
21 Subsidiaries
The Group’s principal subsidiary undertakings for the period are listed below, including the name, country of incorporation, and proportion 
of ownership interest:
Name
Country of registration 
or incorporation Principal activity Class of shares
2015 
%
2014 
%
Focusrite Audio Engineering Limited
England  
and Wales
Manufacture and 
distribution Ordinary 100 100
Focusrite Novation Inc
1
United States  
of America
Marketing  
services Ordinary 100 100
1 Owned indirectly through Focusrite Audio Engineering Limited.
22 Inventories
2015
£’000
2014
£’000
Raw materials 65  386 
Finished goods 8,568  6,210 
  8,633  6,596 
No inventories have been pledged as security against borrowings (2014: £nil). Stock days recorded against cost of sales amounted to 
123 days in 2015 (2014: 1 1 1 days). Financial Statements Governance Strategic Report 
63
Fo c us ri t e P l c  
Annual Report and Accounts 2015
23 Trade and other receivables
2015
£’000
2014
£’000
Amount receivable for the sale of goods  6,499  6,018 
Allowance for doubtful debts (36) (24)
  6,463  5,994 
Other debtors 1,109  46 
Prepayments 165  327 
  7,737  6,367
 
Trade receivables
Trade receivables disclosed above are classified as loans and receivables and are measured at amortised cost.
The average credit period offered on sales of goods during 2015 was 45 days (2014: 30 days). The average days’ sales outstanding 
(‘DSO’) in 2015 was 48 days (2014: 48 days). 
The Group has not charged interest for late payment of invoices in 2014 or 2015. 
Allowances against doubtful debts are recognised against overdue trade receivables based on estimated irrecoverable amounts 
determined by reference to past default experience. Specific counterparty risk is also considered where an analysis of the counterparty’s 
current financial position indicates a change in credit risk. 
Before accepting any significant new customer, the Group uses a variety of credit scoring systems to assess the potential customer’s 
credit quality and to define credit limits for each customer. Limits and scoring attributed to customers are reviewed regularly. A single 
major distributor accounted for 45% of the total balance of trade receivables net of allowances for doubtful debts on 31 August 2015 
(2014: 42%). No other single customer accounted for more than 10% of the total balance of trade receivables net of allowances for 
doubtful debts during the period under review.
Trade receivables disclosed above include amounts (see below for aged analysis) which are past due at the year end but against which 
the Group has not recognised an allowance for doubtful receivables. There has not been a significant change in credit quality and the 
amounts are still considered recoverable. 
Ageing of not impaired receivables:
 
2015
£’000
2014
£’000
Not overdue 5,225  4,632 
Overdue between 0–30 days 1,098  1,277 
Overdue between 31–60 days 140  72 
Overdue between 61–90 days –  3 
Overdue between 91–120 days –  4 
Overdue more than 120 days –  6 
  6,463  5,994 
Movement in the allowance for doubtful debts:
 
2015
£’000
2014
£’000
Balance at the beginning of the period 24  24 
Impairment losses recognised  12  41 
Amounts written off during the year as uncollectible – (41)
Amounts recovered during the year –  – 
Impairment losses reversed –  – 
Balance at the end of the period 36  24 
In determining the recoverability of a trade receivable the Group considers any change in the credit quality of the trade receivable from 
the date credit was initially granted up to the relevant year end. Aside from the major customer mentioned above, the concentration of 
credit risk is limited due to the customer base being large and diverse in terms of industry sector. The Group’s exposure to credit risk for 
trade receivables is substantially covered by credit insurance, including amounts in relation to its largest customer. In addition, the Group 
maintains a close operational relationship with the key management of its major customer, so as to monitor any changes in the level of 
credit risk associated with that business.  Financial Statements
64
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
Ageing of impaired trade receivables:
 
2015
£’000
2014
£’000
Overdue up to 30 days  –  – 
Overdue between 31–60 days –  – 
Overdue between 61–90 days –  – 
Overdue between 91–120 days –  – 
Overdue more than 120 days 36  24 
  36  24 
Trade receivables net of allowance for doubtful debts:
 
2015
£’000
2014
£’000
Gross value of not impaired receivables 6,464  5,994 
Gross value of impaired receivables 36  24 
Allowance for doubtful debts (36) (24)
  6,464  5,994 
The Directors consider that the carrying amount of trade and other receivables approximates their fair value.
24 Other investments including derivatives
During 2015 and 2014 the Group entered into a number of foreign currency forward contracts to provide economic hedging for known 
cash flow transactions. The fair values of the contracts outstanding at the year end are summarised below. In each case the forward 
contracts were settled during the year with any realised gain or loss recognised in profit and loss.
2015
£’000
2014
£’000
Fair value of outstanding forward contracts:  
Euro to US Dollar 76  18 
Euro to pounds Sterling 147  100 
  223  118
 
25 Deferred tax
The following are the major deferred tax liabilities and assets recognised by the Group:
Accelerated 
tax 
depreciation
£’000
Other 
temporary 
differences
£’000
Unrelieved tax 
losses
£’000
Total
£’000
Cost    
At 1 September 2013 394  –  –  394 
Credit to profit or loss 136  –  –  136 
At 31 August 2014 530  –  –  530 
Credit to profit or loss 213  –  –  213 
At 31 August 2015 743  –  –  743 
Deferred tax assets and liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the 
deferred tax balances (after offset) for financial reporting purposes:
2015
£’000
2014
£’000
Deferred tax liabilities 743  564 
Deferred tax assets – (34)
At 31 August 2014 743  530 
23 Trade and other receivables continued Financial Statements Governance Strategic Report 
65
Fo c us ri t e P l c  
Annual Report and Accounts 2015
26 Operating lease arrangements
Minimum lease payments
2015
£’000
2014
£’000
Lease payments under operating leases recognised as an expense during the year 156  130 
At the balance sheet date the Group had outstanding commitments for future minimum lease payments under non-cancellable operating 
leases, which fall due as follows:
Present value of minimum 
lease payments
2015
£’000
2014
£’000
Within one year 167  166 
In the second to fifth years inclusive 654  658 
After five years 383  703 
  1,204  1,527 
Operating lease payments typically represent rentals payable by the Group for its office properties and office equipment. Rent reviews 
and break clauses apply to leased property agreements.
27 Trade and other payables
2015
£’000
2014
£’000
Trade payables 5,197  4,094 
Accrued expenses 2,976  2,594 
Other taxation and social security payable 233 –
  8,406  6,688 
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period 
taken for trade purchases was 66 days (2014: 59 days). No interest costs have been incurred in relation to trade payables. The Group 
policy is to ensure that payables are paid within the pre-agreed credit terms and to avoid incurring penalties and/or interest on late 
payments. Other creditors include sales taxes, property taxes, social security and employment taxes due to local tax authorities.
The Directors consider that the carrying amount of trade payables approximates their fair value.
28 Share capital
2015
Number
2014
Number
Issued and fully paid:  
Ordinary shares of £1 each –  52,399 
Ordinary shares of £0.001 each 58,075,000  – 
  
2015
£
2014
£
Issued and fully paid:  
Ordinary shares of £1 each –  52,399 
Ordinary shares of £0.001 each 58,075  – 
  58,075  52,399 
The Company has one class of ordinary shares which carry no right to fixed income. On 17 September 2014, Focusrite Audio Engineering 
Limited undertook a share subdivision of 1,000 £0.001 ordinary shares for each of its £1 ordinary shares. On 4 December 2014, the 
Company issued 58,074,998 ordinary shares of £0.001 each at par in consideration for 58,075,000 ordinary shares in Focusrite Audio 
Engineering Limited. Financial Statements
66
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
29 Other reserves
Merger reserve
2015
£’000
2014
£’000
Balance at 1 September – –
Share for share exchange 14,595 –
Balance at 31 August 14,595 –
Merger difference reserve
2015
£’000
2014
£’000
Balance at 1 September 1,448 1,218
Share for share exchange (14,595) 230
Balance at 31 August (13,147) 1,448
Treasury share reserve
2015
£’000
2014
£’000
Balance at 1 September  –  – 
Shares transferred to EBT (6) – 
Balance at 31 August (6) –
Translation reserve
Exchange differences relating to the translation of the net assets of the Group’s USA subsidiary from its functional currency into the 
parent’s functional currency are recognised directly in the translation reserve.
2015
£’000
2014
£’000
Balance at 1 September (6) (6)
Exchange differences on translating the net assets of foreign operations –  – 
Balance at 31 August (6) (6)
30 Retained earnings
£’000
Balance at 1 September 2013 10,899 
Net profit for the year 5,047 
Share-based payments credit 12 
Dividends (4,244)
Balance at 31 August 2014 11,714 
Net profit for the year 5,462 
Share-based payments credit 122
Dividends (314)
Balance at 31 August 2015 16,984  Financial Statements Governance Strategic Report 
67
Fo c us ri t e P l c  
Annual Report and Accounts 2015
31 Notes to the cash flow statement
 
Note
2015
£’000
2014
£’000
Profit for the financial year 5,462 5,047
Adjustments for:   
Income tax expense 15 1,022  763 
Net interest 9,11 (164) (100)
(Profit) on disposal of property, plant and equipment (1) (100)
Amortisation of intangibles 19 1,902  1,461 
Depreciation of property, plant and equipment 20 368  423 
Share-based payments charge 32 122 12
Operating cash flows before movements in working capital 8,711 7,506
(Increase)/decrease in trade and other receivables (1,370) 1,378
(Increase)/decrease in inventories (2,037) 307
Increase in trade and other payables  1,718 466
Operating cash flows before interest and tax paid 7,022 9,657
Net interest received  6 59
Income taxes paid (838) (826)
Cash generated by operations 6,190 8,890
Net foreign exchange movements  53 (86)
Net cash from operating activities 6,243 8,804
Cash and cash equivalents
2015
£’000
2014
£’000
Cash and bank balances 6,173 3,803
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or less, net of 
outstanding bank overdrafts. The carrying amount of these assets is approximately equal to their fair value.
  Financial Statements
68
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
32 Share-based payments
Equity-settled share option schemes
The Group operates three option schemes: the 2012 EMI Scheme, the 2014 EMI Scheme and an unapproved option scheme (‘Share 
Option Schemes’). Prior to Focusrite Plc’s incorporation, its major trading subsidiary, Focusrite Audio Engineering Limited (‘FAEL ’) 
operated the Share Option Schemes and granted options over its share capital (‘Old Options’). The movements in the numbers of the Old 
Options are set out below.
2014
Number of 
options 
2014
Weighted 
average 
exercise price
£
Outstanding at start of period 8,143  58 
Cancelled during the period (8,143) 58 
Outstanding at end of period –  – 
Exercisable at end of period –  – 
Following the admission of Focusrite Plc to AIM, the Old Options were rolled over into options over shares in Focusrite Plc and Focusrite 
Plc has taken over the operation of the Share Option Schemes. Following admission to AIM the total number of ordinary shares under 
option in Focusrite Plc was 7,382,097 of which 5,085,097 were to be satisfied by non-dilutive ordinary shares that had been issued to 
the EBT. 
The remaining number of options will be held by the Directors and would, if exercised, result in the issue of 2,297,000 ordinary shares. 
The options to be held by the Directors are subject to performance-related vesting conditions. 
No options over Focusrite Plc’s shares were exercised during the year ended 31 August 2015. The weighted average share price at the 
date of exercise for share options exercised during the period ended 31 August 2014 was £103.80. For the share options outstanding  
at the end of the year, the weighted average remaining contractual life was 3.2 years (2014: 6.7 years). 
2015
Number of 
options 
2015
Weighted 
average 
exercise 
price
£
FAEL options rolled over into options over shares in Focusrite Plc: –  – 
 2014 EMI Scheme: D Froker 1,004,000 0.10
 Unapproved Option Agreement: D Froker 893,000 0.10
 2014 EMI Scheme: J Wilson 400,000 0.15
 2014 EMI Scheme: Other employees 5,085,097 0.15
Options outstanding upon admission to AIM 7,382,097 0.14
Granted during the period: 2015 Performance Share Plan 138,876 1.74
Cancelled during the period: 2014 EMI Scheme other employees (365,642) 0.15
Outstanding at end of period 7,155,331  0.17 
Exercisable at end of period 619,000  0.10 
 
2015
£’000
2014
£’000
Expense arising from share-based payment transactions 122 12
The estimated fair value of the share options was calculated by applying a Black-Scholes model. The model inputs were:
 
Grant date 
18 Sept 2014 
Grant date 
1 Sept 2014
Share price at date of grant £0.15 £1.74
Exercise price £0.15 £1.74
Expected volatility 51.80% 51.80%
Dividend yield 1.50% 1.50%
Contractual life of option 3.2 years 3.2 years
Risk free interest rate 0.56% to 1.93% 1.93% Financial Statements Governance Strategic Report 
69
Fo c us ri t e P l c  
Annual Report and Accounts 2015
33 Retirement benefit scheme
The Group operates a stakeholder retirement benefit scheme which is open to all employees. 
Other than amounts that are deducted from employees’ remuneration and accrued pending payment to the pension fund, no further 
obligations fall on the Group as the assets of these arrangements are held and managed by third parties entirely separate from  
the Group.
The pension charge for the period represents contributions payable to the fund and amounted to £222,000 for the year ended 
31 August 2015 (2014: £353,000). Contributions totalling £20,000 (2014: £nil) were payable to the fund at the balance sheet date  
and are included in trade and other payables.
34 Financial instruments
Capital risk management
The Group manages its capital to ensure entities within the Group are able to continue as going concerns while maximising the return  
to stakeholders. The Group’s overall strategy has evolved in the last five years in response to organic growth opportunities.
The capital structure of the Group consists of cash and cash equivalents and equity attributable to equity holders of the parent, 
comprising issued capital, reserves and retained earnings as disclosed in notes 28 to 30. 
The Group is not subject to any externally imposed capital requirements. Equity includes all capital and reserves of the Group that are 
managed as capital.
Categories of financial instruments
 
 2015
£’000
2014
£’000
Financial assets
Cash and cash equivalents 6,173  3,803 
Forward exchange contracts  223  118 
Trade receivables 6,464  5,409 
12,860 9,330
Financial Liabilities
Amortised cost
Trade payables 5,197  4,094 
  5,197  4,094 
Financial risk management objectives
The Group’s finance function is responsible for all aspects of corporate treasury. It co-ordinates access to financial markets, monitors and 
manages the financial risks relating to the operations of the Group through internal reports which analyse exposures by degree and 
magnitude. The risks reviewed include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity 
risk and cash flow interest rate risk.
The Group seeks to minimise the effects of these risks by using derivative financial instruments to hedge these risk exposures. The use 
of financial derivatives is governed by the Group’s policies approved by the Board of Directors, which provides guidance to the finance 
function in addressing all risks, including foreign exchange risk, credit risk and the appropriate use of financial derivatives and non-
derivative financial instruments, and the investment of excess liquidity. The Group does not enter into or trade financial instruments, 
including derivative financial instruments, for speculative purposes.
The Group’s bankers are party to a debenture which provides for security over the whole of the Company’s assets and undertaking.  
This debenture is in place to support the revolving credit facility, provision of forward contracts and a duty deferment facility. Financial Statements
70
Focusrite Plc  
Annual Report and Accounts 2015
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates (see below). The Group 
enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk. Currently the exposure to 
short-term foreign exchange rate risks is mitigated through the purchase of forward foreign exchange contracts to hedge the exchange 
rate risk arising on trading with overseas customers.
Foreign currency risk management
The Group undertakes transactions denominated in foreign currencies; consequently exposures to exchange rate fluctuations arise. 
Exchange rate exposures are managed within approved policy parameters, utilising forward foreign exchange contracts.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the relevant period end 
dates are as follows:
 
Liabilities Assets
2015
£’000
2014
£’000
2015
£’000
2014
£’000
US Dollars 4,844  3,745  6,544  3,430 
Euro 20  22  2,135  1,322 
GB pound Sterling 3,947  3,353  5,232  5,209 
  8,811  7,120  13,911  9,961 
Foreign currency sensitivity analysis
The Group is mainly exposed to the Euro and US Dollar.
The following table details the Group’s sensitivity to a 10% increase and decrease in pound Sterling against the relevant foreign currencies. 
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period 
end for a 10% change in foreign currency rates. 
A negative number below indicates a decline in profits and other equity where pound Sterling strengthens 10% against the relevant 
currency. For a 10% weakening of pound Sterling against the relevant currency, there would be a comparable impact on the profit and 
other equity, and the balances below would be positive. 
 
Euro impact
1
US Dollar impact
2
2015
£’000
2014
£’000
2015
£’000
2014
£’000
Profit or loss 211  130  170 (31)
1. This is mainly attributable to the exposure outstanding on Euro net payables and receivables at the balance sheet date.
2. This is mainly attributable to the exposure to US Dollar net payables and receivables at the balance sheet date.
In management’s opinion, the sensitivity analysis is representative of the inherent foreign exchange risk through the year. 
Forward foreign exchange contracts
It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts 
with the aim that approximately 75% of the foreign exchange exposure is covered. Basis adjustments are made to the carrying amounts 
of non-financial hedged items when the anticipated sale or purchase transaction takes place.
Interest rate risk management
The Group is not currently exposed to interest rate risk because it does not have any external borrowings. 
Notes to the Financial Statements continued
For the year ended 31 August 2015
34 Financial instruments continued Financial Statements Governance Strategic Report 
71
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The 
Group has a well-established system of credit limits and credit insurance, typically covering around 90% of the Group’s trade receivables. 
The carrying amount recorded for financial assets in the consolidated financial information is net of impairment losses and represents the 
Group’s maximum exposure to credit risk. No guarantees have been given in respect to third parties. 
Liquidity risk management
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities. To counter  
this risk, the Group operates with a high level of cash and no bank debt. In addition, it benefits from strong cash flow from its normal 
trading activities.
The following table details the Group’s expected maturity for its non-derivative financial assets. The tables below have been drawn up 
based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The 
inclusion of information on non-derivative financial assets is necessary to understand the Group’s liquidity risk management as the 
liquidity is managed on a net asset and liability basis.
 
Weighted 
average 
effective 
interest rate
%
Less than 
1 month
£’000
1–3 months
£’000
3 months to 
1 year
£’000
1–5 years
£’000
5+ years
£’000
Total
£’000
2014       
Non-interest bearing  2,887  –  –  –  –  2,887 
Variable interest rate instruments 1.4% 916  –  –  –  –  916 
   3,803  –  –  –  –  3,803 
        
2015       
Non-interest bearing  4,414  –  –  –  –  4,414 
Variable interest rate instruments 0.4% 1,759  –  –  –  –  1,759 
   6,173  –  –  –  –  6,173 
The maturity of non-derivative financial liabilities, comprising trade payables and other creditors, is less than three months for both of the 
financial period ends.
The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities is subject  
to change if changes in variable interest rates differ to those estimates of interest rates determined at the relevant year ends  
presented above.
Fair value of financial instruments
Fair value of financial instruments carried at amortised cost
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial 
statements approximate their fair values.
Valuation techniques and assumptions applied for the purposes of measuring fair value
The fair values of financial assets and financial liabilities are determined as follows.
• The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are 
determined with reference to quoted market prices (includes listed redeemable notes, bills of exchange, debentures and perpetual 
notes).
• The fair values of other financial assets and financial liabilities (excluding derivative instruments) are determined in accordance with 
generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions 
and dealer quotes for similar instruments.
• The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash 
flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option 
pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and 
yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present 
value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. Financial Statements
72
Focusrite Plc  
Annual Report and Accounts 2015
Notes to the Financial Statements continued
For the year ended 31 August 2015
Fair value measurements recognised in the statement of financial position
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value. The 
grouping into Levels 1 to 3 is based on the degree to which their fair value is observable:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for 
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not 
based on observable market data (unobservable inputs). 
The financial instruments held by the Group that are measured at fair value all relate to financial assets/(liabilities) measured at fair value 
through profit and loss (‘FVTPL ’) using methods associated with Level 2.
2014
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Financial assets/(liabilities) at FVTPL   
Financial assets designated at FVTPL –  118  –  118 
Total –  118  –  118 
    
2015
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Financial assets/(liabilities) at FVTPL   
Financial assets designated at FVTPL –  223  –  223 
Total –  223  –  223
35 Contingent liabilities
The Company and its subsidiaries are currently, and may be from time to time, involved in a number of legal proceedings that are 
incidental to their operations. However, in the opinion of the Directors, the Company and its subsidiaries are not involved currently in any 
legal proceedings which, at 31 August 2015 and for the period up to the date of approval of these financial statements, have had a 
significant effect on the financial position or profitability of the Company and its subsidiaries.
In respect of these specific legal proceedings, further information is not disclosed on the grounds that it can be expected to prejudice 
seriously the outcome of the litigation. The Company is vigorously defending its position and has sought appropriate legal counsel. As a 
result of this the Company has concluded that it is not probable that there will be a material potential outlay and, hence, no provision has 
been recognised at 31 August 2015.
36 Related party transactions
Balances and transactions between the Parent Company and its subsidiary, which are related parties, have been eliminated on 
consolidation and are not disclosed in this note. Transactions between the Group and other related parties are disclosed below. 
Remuneration of key management personnel
The key management personnel are the operational Directors of the Group and the remuneration that they have received during the year 
is set out below in aggregate for each of the categories specified in IAS 24 ‘Related Party Disclosures’. 
 
2015
£’000
2014
£’000
Short-term employee benefits 1,378 1,670
Share-based payments 15 12
Pension contributions 50 9
 1,443 1,691
Aggregate emoluments of the highest paid Director 229 340
34 Financial instruments continued Financial Statements Governance Strategic Report 
73
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Transactions involving Directors and key management personnel
Loans to related parties
On 31 October 2012 the Company made a secured term loan to Disruptive Limited. Mr P Dudderidge, a Director and shareholder of the 
Company was also a shareholder in Disruptive Group Holdings Limited, the parent company of Disruptive Limited. The loan principal was 
£1.5 million and attracted interest at a fixed rate of 8% per annum, which was considered by management to be determined on an arm’s 
length basis. 
The amount outstanding at 31 August 2015 amounted to £nil (2014: £nil) following the early repayment of the loan on 29 August 2014 
which included accrued interest of £52,144. 
On 25 July 2014 the Company made an unsecured loan of £24,000 to Mr D Froker, a Director of the Company. Interest was charged at 
1% above bank base rate and repayment was dependent on the fulfilment of a number of terms, but at the latest, by the date of 
finalisation of the Company’s accounts for the year ended 31 August 2015. The principal terms of the loan are considered by 
management to be determined on an arm’s length basis. The loan, together with accrual interest thereon, was repaid in full on 
17 November 2014.
Other related party transaction
During the period, the Company entered into a commercial lease agreement in Lincoln Road, High Wycombe. Mr P Dudderidge, a 
Director and shareholder of the Company, is the landlord of the property in Lincoln Road, High Wycombe. The annual rental is £15,000. Financial Statements
74
Focusrite Plc  
Annual Report and Accounts 2015
Company Balance Sheet
As at 31 August 2015
Note
2015
£’000 
Assets  
Non-current assets  
Investment in subsidiaries 6  14,647 
Total fixed assets  14,647 
Current assets  
Trade and other receivables 7  1,847 
Corporate tax recoverable   38 
Cash at bank and in hand  847 
Net current assets  2,732 
Total assets less current liabilities 17,379
Net assets 17,379
   
Capital and reserves  
Share capital 8  58 
Merger reserve 9  14,595 
Treasury share reserve 10 (6)
Retained earnings  11  2,732 
Total equity and shareholders’ funds  17,379 
The financial statements were approved by the Board of Directors and authorised for issue on 9 December 2015. They were signed on 
its behalf by:
Dave Froker  Jeremy Wilson
Chief Executive Officer Chief Financial Officer
The notes on pages 77 to 80 form part of the financial statements. Financial Statements Governance Strategic Report 
75
Fo c us ri t e P l c  
Annual Report and Accounts 2015
Company Statement of Changes in Equity
For the year ended 31 August 2015
Note
Share capital
£’000
Merger 
reserve
£’000
Treasury 
share reserve
£’000
Retained 
earnings
£’000
Total
£’000
Balance at 14 November 2014  –  –  –  –  – 
Profit for the financial period 11 –  –  – 3,046 3,046
Issue of ordinary shares 8, 9 58  14,595  –  –  14,653 
Dividends 5 –  –  – (314) (314)
Ordinary shares issued to the EBT  –  – (6) – (6)
Net movement   58  14,595 (6) 2,732 17,379
Equity shareholders’ funds at end of period   58  14,595 (6) 2,732 17,379
The notes on pages 77 to 80 form part of the financial statements. Financial Statements
76
Focusrite Plc  
Annual Report and Accounts 2015
Company Cash Flow Statement 
Note
2015
£’000
Profit for the financial year (148)
Adjustments for:
Income tax expense (38)
Operating cash flows before movements in working capital (186)
(Increase)/decrease in trade and other receivables (17)
Increase in trade and other payables 203
Operating cash flows before interest and tax paid –
Net cash from operating activities –
Net cash from operating activities –
Investing activities
Dividend received 1,161
Net cash from/(used in) investing activities 1,161
Financing activities
Equity dividends paid 5 (314)
Net cash (used in) financing activities (314)
Net increase/(decrease) in cash and cash equivalents 847
Cash and cash equivalents at beginning of year –
Cash and cash equivalents at end of year 847 Financial Statements Governance Strategic Report 
77
Fo c us ri t e P l c  
Annual Report and Accounts 2015
1 Authorisation of financial statements and statement of compliance with FRS 101
The Parent Company financial statements of Focusrite plc (the ‘Company’) for the period from its incorporation on 14 November 2014  
to 31 August 2015 were authorised for issue by the Board of Directors on 9 December 2015 and the balance sheet was signed on the 
Board’s behalf by Dave Froker and Jeremy Wilson. 
Focusrite Plc is a public limited company incorporated and domiciled in England and Wales. The Company’s ordinary shares are traded on 
AIM. These financial statements were prepared in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ 
(‘FRS 101’). 
No profit and loss account is presented by the Company as permitted by section 408 of the Companies Act 2006. 
The accounting policies which follow set out those policies which apply in preparing the financial statements for the period ended 
31 August 2015. 
2 Basis of preparation and summary of significant accounting policies
Basis of preparation
The Company has adopted FRS 101 early which is permitted under the Standard. The accounting policies which follow set out those 
policies which apply in preparing the financial statements for the period ended 31 August 2015.
The principal accounting policies applied in the presentation of these financial statements are set out below. 
Going concern
The Group’s business activities and position in the market are described in the Strategic Report. The Directors believe that the Group is 
well placed to manage its business risks successfully despite the current uncertainties within the global economy. The Group has 
considerable financial resources, recurring revenue streams and a broad spread of customers. As a consequence of these factors and 
having reviewed the forecasts for the coming year, the Directors have a reasonable expectation that the Group has adequate resources 
to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in 
preparing the annual financial statements. Further detail is contained in the Strategic Report on pages 1 to 29.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less any provision for impairment.
Cash
Cash and short-term deposits in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity 
of three months or less.
Income taxes
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based  
on tax rates and laws that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying 
amounts in the financial statements, with the following exceptions:
• deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the 
deductible temporary differences, carried forward tax credits or tax losses can be utilised.
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the 
related asset is realised or liability is settled, based on tax rates and laws enacted or substantively enacted at the balance sheet date.  
The carrying amount of deferred income tax assets is reviewed at each balance sheet date.
Deferred income tax assets and liabilities are offset only if a legally enforced right exists to set off current tax assets against current  
tax liabilities, the deferred income taxes relate to the same taxation authority and that authority permits the Company to make a single 
net payment. 
Income tax is charged or credited to other comprehensive income if it relates to items that are charged or credited to other 
comprehensive income. Similarly, income tax is charged or credited directly to equity if it relates to items that are credited or charged 
directly to equity. Otherwise income tax is recognised in the income statement.
Retirement benefit costs 
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made to state-
managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Group’s obligations under 
the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.
Notes to the Company Accounts
For the year ended 31 August 2015 Financial Statements
78
Focusrite Plc  
Annual Report and Accounts 2015
Equity-settled share-based payments
The Company issues equity-settled payments to certain employees (including Directors). All goods and services received in exchange for 
the grant of any share-based payment are measured at their fair values. Where employees are rewarded using share-based payments the 
fair values of employees’ services are determined indirectly by reference to the fair value of the instrument granted to the employee. This 
fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, profitability and sales 
growth targets).
Share options are valued at the date of grant using the Black-Scholes option pricing model for options with non-market vesting conditions 
attached and a simulation model for options with market vesting conditions attached, and are charged to operating profit over the vesting 
period of the award with a corresponding credit to the ‘other reserves’.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period based on the best 
available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the 
number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the 
current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to 
that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital and, where 
appropriate, share premium account.
The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings is treated as a capital 
contribution. The fair value of the service received, measured by reference to the grant date fair value, is recognised over the vesting 
period as an increase to investment in subsidiary undertakings with a corresponding credit to reserves.
3 Directors’ remuneration
2015
£’000
Salaries 417
Social security costs 58 
Pension costs 3 
 478
During the year retirement benefits were accruing to three Directors (2014: none) in respect of defined contribution pension schemes. 
The highest paid Director received remuneration of £126,000 (2014: £nil).
The value of the Company’s contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted 
to £nil (2014: £nil). During the year, no share options were exercised by Directors (2014: nil).
The Directors’ remuneration since incorporation:
Executive Directors
Salary/fees
£’000
Other  
taxable 
benefit
£’000
Annual  
bonus
£’000
Vested  
share options
£’000
Pension 
contribution
£’000
Total
£’000
Dave Froker FY14 – – – – – –
FY15 115 2 – – 1 118
Jeremy Wilson FY14 – – – – – –
FY15 124 – 30 – 2 156
Phil Dudderidge FY14 – – – – – –
FY15 126 – – – – 126
Non-executive Directors
David Bezem FY14 – – – – – –
FY15 26 – – – – 26
Paul Dean FY14 – – – – – –
FY15 26 – – – – 26
Total 417 2 30 – 3 452
Notes to the Company Accounts continued
For the year ended 31 August 2015
2 Basis of preparation and summary of significant accounting policies continued Financial Statements Governance Strategic Report 
79
Fo c us ri t e P l c  
Annual Report and Accounts 2015
4 Staff costs
Staff costs, including Directors’ remuneration, were as follows:
2015
£’000
Wages and salaries  563 
Social security costs 71 
Other pension costs 17 
  651 
The average monthly number of employees, including the Directors, during the year was as follows:
2015
Number
Management and administration 7 
  7 
5 Dividends
The following equity dividends have been declared and paid.
2015
£’000
Dividend on ordinary shares – representing £0.006 per £0.001 ordinary share 314
6 Investments in subsidiaries
2015
£’000
Additions in the period 14,647 
At 31 August 2015 14,647 
The investments in subsidiaries comprise:
Name
Country of 
registration or 
incorporation
Principal 
activity
Class of 
shares
2015 
%
Focusrite Audio Engineering Limited
England 
and Wales
Manufacture 
and distribution Ordinary 100
Focusrite Novation Inc
1
United States 
of America
Marketing 
services Ordinary 100
1 Owned indirectly through Focusrite Audio Engineering Limited.
7 Debtors
2015
£’000
Other debtors 17 
Amounts owed by Group undertakings 1,830
  1,847  Financial Statements
80
Focusrite Plc  
Annual Report and Accounts 2015
8 Share capital
2015
Number
Issued and fully paid: 
Ordinary shares of £0.01 each 58,075,000 
  58,075,000
 
2015
£
Issued and fully paid: 
Ordinary shares of £0.01 each 58,075 
  58,075
The Company has one class of ordinary shares which carry no right to fixed income. On 4 December 2014 the Company  
issued 58,074,998 ordinary shares of £0.01 each at par in consideration for 58,075,000 ordinary shares in Focusrite Audio  
Engineering Limited.
9 Merger reserve
2015
£’000
Transferred in the period  14,595 
At 31 August 2015 14,595
The merger reserve represents the difference between the cost of the investment in Focusrite Audio Engineering Limited (and its 
subsidiary, Focusrite Novation Inc.) of £14,647,000 and the nominal value of the ordinary shares issued in exchange of £52,000. 
10 Treasury reserve 
2015
£’000
Transferred in the period (6)
At 31 August 2015 (6)
11 Retained earnings
2015
£’000
Net profit for the period 3,046
Dividend (314)
At 31 August 2015 2,732
The Company has taken advantage of section 408 of the Companies Act 2006 and has not included its own profit and loss account in 
these financial statements. The Parent Company’s profit for the year was £3,046,000.
Notes to the Company Accounts continued
For the year ended 31 August 2015 Registered office
Windsor House
Turnpike Road
High Wycombe 
Buckinghamshire
HP12 3FX
Company number
09312676
Auditors
KPMG LLP
One Snowhill
Snow Hill Queensway
Birmingham
B4 6GH
Nominated Advisers and Broker
Panmure Gordon (UK) Limited
One New Change
London
EC4M 9AF
Legal Advisers
Stephenson Harwood
1 Finsbury Circus
London 
EC2M 7SH
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing 
West Sussex
BN99 6DA
Financial Public Relations
Belvedere Communications Limited
43 Manchester Street
London
W1U 7LP
 
Company Secretary
Michael Warriner 
Advisers Focusrite Plc Annual Report and Accounts 2015
Focusrite Plc
Windsor House 
Turnpike Road 
High Wycombe 
Bucks HP12 3FX 
United Kingdom
T: +44 1494 462246
www.focusriteplc.com