History maker Midwich racks up the millions
Audio Visual specialist Midwich expects revenues to top £850 million – the highest in the Norfolk group’s history – for the year to December 31 2021.It also predicts pre-tax profit ahead of previous expectations and another all-time record.
The trading update sent the UK share price 31p – almost five per cent – higher to 656.88p at start of trading on Wednesday.
The globally successful business says the revenue hike represents growth of around 20 per cent over the previous year.
The gross margin improved in line with the board's expectations. Adjusted net debt at the end of the year – some £57m (around 1.5 times adjusted EBITDA) – was what the board forecast.
As a result of this strong performance, the board now anticipates adjusted profit before tax not less than £31.5m for 2021 – ahead of previous expectations.
Group managing director Stephen Fenby, said: “2021 was a very successful year for the group despite continued market challenges caused by the pandemic.
“Coming into the year, our ambitious goal was to return the group’s profitability back to pre-Covid 19 levels. We achieved this, finishing the year with the highest revenues and net profit in the group’s history.
“Since joining the group in 2021, NMK, eLink and Intro 2020 have all performed well and we look forward to working with our new colleagues at DVS, who joined the group in early January.
“In 2022 our focus will be on maintaining a strong growth trajectory whilst supporting customers through ongoing widespread product shortages, exploring cross-selling opportunities in the current portfolio and also evaluating the healthy pipeline of potential acquisitions.”
Midwich will announce its final results on March 8.