Midwich Group PLC - Norfolk-based audio visual distributor - Sinks to pretax loss of GBP995,000 in 2020 from GBP23.8 million profit in 2019. Finance costs rise to GBP8.3 million from GBP1.2 million and total administrative expenses grow to GBP28.2 million from GBP23.1 million.
Revenue improves 3.7% to GBP711.8 million from GBP686.2 million in 2019. Notes 2020 was a record revenue performance, which it believes highlights the "resilience of the business".
Revenue improved consistently from April, company says, with organic revenue decline of 22% in the first half of the year reduced to a 7% decline in the second half of the year. Also notes acquisitions made in 2019 and 2020 have been fully integrated and delivered a positive contribution.
"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," Managing Director Stephen Fenby says.
"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."
Notes decision against shareholder distributions in 2020 due to use of UK government support to help retain jobs and a focus on the preservation of cash.
"The board is conscious of the impact of this decision on shareholders, including the majority of our staff who own shares in the group, and is committed to reinstating dividend payments when appropriate," company adds.
Current stock price: 461.00 pence, down 0.1% on Tuesday
Year-to-date change: down 7.8%
By Paul McGowan; paulmcgowan@alliancenews.com
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Midwich Group (MIDW)