LONDON (Alliance News) - Audio-visual and document distributor Midwich Group PLC hiked its dividend Tuesday after its half-year profit jumped as revenue rose amid a "strong" performance across all its geographies.
For the six months ended June, pretax profit jumped 49% to GBP11.9 million from GBP8.0 million the year prior. This was after revenue rose 25% to GBP264.1 million from GBP211.6 million the year before.
"The group has had another strong first half and I am pleased with the performance across all of our territories," Midwich Managing Director Stephen Fenby said. "The increase in the group's gross margin percentage reflects both growth in the core business and a significant contribution from the three acquisitions made in 2017 in our displays and technical product categories. The more specialist nature of the acquired businesses ensures that our value add to customers and vendors continues to increase."
Midwich proposed a 4.60 pence per share, up 10% from 4.17p the year prior.
"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 New Media and Perfect Sound after the period end," Fenby added. "The pipeline for strategic acquisitions across the territories in which we operate remains strong and we will continue our disciplined approach to add value while both strengthening and diversifying our product offering."
"The strong performance reported in the first half," Fenby added, "coupled with positive sales momentum and strong contributions from recent acquisitions, gives the board confidence that the group will report full year results in line with its revised expectations."
In late July, the firm explained it expected full year results to be "ahead" of its previous expectations.
Shares in Midwich were 5.5% lower at 640.00 pence on Tuesday.