Midwich upbeat despite falling revenue and profits
Midwich Group plc, the Norwich-based audio visual distributor, saw revenues and profits go through the floor in the six months ended June 30 but shareholders have stuck with the business and even sent the stock higher following the results.
The AIM-quoted company has operations across the UK and Ireland, Continental Europe, Asia Pacific and North America.
Revenue fell from £314.8m to £302m and last time’s pre-tax profit of £11.3m turned to a £2.5m loss.
Managing director Stephen Fenby said: “The coronavirus pandemic represents the biggest shock to our business sector. As the crisis unfolded, we took decisive action to protect our teams, preserve cash and support our customers and vendors.
“These continue to be our key priorities as the pandemic continues and will optimally position the group as the recovery continues to gather pace.
“Although significantly impacted, our market strength, combined with the diversity of our group in terms of geographical spread, vendor breadth, technology focus and end user markets have partially mitigated the negative impact of the crisis.
“In recent weeks, whilst we continue to monitor the pandemic, we have increasingly shifted our focus to the future – bringing back our teams, reopening offices and resuming some face to face customer interactions.
“We have launched new vendor relationships and further developed our expertise in the unified communications sector. Our acquisition programme has also recommenced with a number of exciting opportunities in the pipeline. Group revenues have improved month on month since April.
“The coronavirus pandemic has been a shock to the global economy, however we believe that the AV industry is well placed for the future. We see no overall change in long term prospects for the industry.
“Although some segments of the market may be slower to recover, other trends (such as the increased adoption of UC) have unsurprisingly accelerated..”