Midwich revenues soar as global footprint expands
Midwich, a Norfolk-based specialist audio visual distributor to the trade market, has posted a thumping set of first-half results to June 30.
Revenue was up 19.2 per cent to £314.8 million while adjusted profit before tax was 6.2 per cent higher at £13.7m.
The news sent the shares slightly higher to 502p and boosted the market cap to £401.4m. The interim dividend was lifted to 4.85 pence per share – up from 4.60p year-on-year.
The Diss-headquartered business has operations in the UK and Ireland, Continental Europe and Asia Pacific.
Its long-standing relationships with over 400 vendors, including blue-chip organisations, support a comprehensive product portfolio across major audio visual categories such as large format displays, projectors, digital signage and professional audio. The group operates as the sole or largest in-country distributor for a number of its vendors in their respective product sets.
Midwich has a large and diverse base of over 17,000 customers, most of which are professional AV integrators and IT resellers serving sectors such as corporate, education, retail, residential and hospitality. Initially a UK-only distributor, the group now has over 900 employees globally.
Managing director Stephen Fenby reported growth across all territories served by the business.
He said: “The group has had another strong first half and I am pleased with our overall performance, particularly given political and economic uncertainties around the globe.
“The increase in gross margin percentage reflects strong performance from the core business and a positive contribution from the acquisitions made in 2018 and the first half of 2019.
“The more specialist nature of the acquired businesses ensures that our value add to customers and vendors continues to increase.
“We have been busy working on opportunities to extend the group’s reach and capabilities through the period and were pleased to complete the acquisitions of MobilePro (Switzerland), Prase (Italy) and AV Partner (Norway), each of which represents our entry into a new territory.
“In addition, the acquisitions of Prase and (post period end) EES in Spain have strengthened our capabilities in the audio and lighting markets respectively.
“We continue to have a healthy pipeline of strategic opportunities and have invested in the group’s acquisition and integration teams in the first half.”