Record revenues but ambitious Midwich keeps the cheque book open
Audio Visual distributor Midwich Group plc is eyeing further acquisitions and global expansion after posting record revenues for the year to December 31.
The financial performance allied to a commitment to keep scaling the business from its Norfolk base defied the pandemic-torn international backdrop.
The UK share price rose almost two per cent to 470p a share on the news. Revenue increased by 3.7 per cent to £711.8 million although adjusted profit before tax was more than halved to £14.2m (2019: £31.2m) as a direct result of COVID-19 disruption.
Acquisitions made in 2019 and 2020 have been fully integrated and are delivering a positive contribution to the group. Entry into the strategically important North American market through the acquisition of Starin Marketing Inc. already looks a long-term gamechanger. The company has also spread its footprint into the Middle East.
Managing director Stephen Fenby said: “2020 was a challenging year for everyone and I would like to take this opportunity to thank all of our employees, partners and suppliers for their tireless hard work and continued support.
“We delivered a robust performance in the year, thanks to our proven business model and our position as a true value add distributor in the global AV market.
“We announced our entry into the US, the world's largest AV market, in February 2020 and post period end, entered the Middle East, giving us true global scale.
“Whilst we have experienced a slowdown in some of our sectors, we have also witnessed improved performances in others and our results in the second half of the year exceeded the board's expectations.
“We are well placed through our diversified geographical and multi-sector footprint, combined with long-term vendor relationships, to continue to deliver growth and take advantage of market opportunities, both organically and through acquisition.”