(Sharecast News) - Audio-visual distributor Midwich Group said on Monday that it had delivered a "robust trading performance" in FY24 as it navigated a "challenging market".
Midwich said FY24 revenues finished "slightly over" £1.3bn, marginally ahead of FY23 and in line with guidance, with overall revenue growth of approximately 2% and organic revenues roughly 1% weaker year-on-year.
The AIM-listed group also stated further positive product mix shift had resulted in a gross margin of around 17.1%, an annual record, but slightly below H124 and internal expectations.
Overheads were in line with expectations, but the lower gross margin resulted in expected adjusted pre-tax profits being slightly below market consensus.
Managing director Stephen Fenby said: "Challenging market conditions continued throughout the year, and the anticipated return to growth in mainstream products in the second half did not materialise. Excess product supply has continued to drive price erosion, particularly in display categories, and this, combined with some aggressive supplier activity, impacted gross margins in the second half.
"Whilst the broader market backdrop remains challenging, the group continues to look for and exploit new growth opportunities, as well as retaining a tight focus on overhead efficiencies. I believe the group remains well positioned to continue to deliver both organic and inorganic growth in the longer term."
As of 1130 GMT, Midwich shares were down 1.0% at 284.12p.
Reporting by Iain Gilbert at Sharecast.com
Midwich Group (MIDW)
