LINN Products, the Scottish hi-fi manufacturer credited with revolutionising the world of analogue sound, is to step up its drive into the digital arena after a further revival in its fortunes.
Newly-published accounts for the firm, which is based in Eaglesham, near Glasgow, show pre-tax profits totalled £1.4 million in the year to 30 June, up from £517,000 in the eight months to June 2008 – a solid rise even on a pro-rata basis. Turnover h
it £16.2m, up from £12.5m in the shorter prior period.
The company, founded in 1972 with a single hi-fi product – the Sondek LP12 turntable – went through a major restructuring two-and-a-half years ago involving the loss of scores of jobs and a significant fall in annual turnover from more than £30m.
It formed part of a plan to focus on a core range of high-end audio and digital music streaming products.
Unveiling his first set of accounts since being appointed managing director, Gilad Tiefenbrun, son of company founder Ivor, said the business was benefiting from a "flight to quality" as people make more considered purchases. He also highlighted a strengthened balance sheet with net debt reduced by £3m and increased investment in new product development.
"Linn has managed to do well in recessions," Tiefenbrun told The Scotsman. "People are prepared to spend money on quality items providing there is a long-term improvement to their lives attached to it.
"What's driving sales is a move to new digital streaming technology and music around the home. If you can lead the industry with something new then that falls to the bottom line," he added.
When Linn launched into the Japanese-dominated audio world of the 1970s, Tiefenbrun's philosophy of "garbage in, garbage out" – placing more emphasis on the front end of the audio chain than the loudspeaker – was seen as revolutionary at the time.
These days, the company is widely-regarded as being at the cutting edge of digital music streaming technology. As well as hardware, the firm owns an eponymous record label and state-of-the-art music download service.
Linn's new MD said high levels of investment in research and development would continue.
"Linn has always led with the source," said Tiefenbrun. "With high quality streaming and downloading, we now have digital music on a par with analogue. As a company, we will go forward with LP12 and analogue, and we will go forward with Linn DS (digital streaming]."
The accounts showed that Linn employed 164 staff at the year end, down from 183 a year earlier.
Boardroom pay rose from about £217,000 in the previous eight-month period to some £580,000. The highest-paid director received £342,600, up from £106,048 – more than double on a comparable basis.
