Last checked at 17 Jan 2018 07:00
17 January 2018
Midwich Group Plc
("Midwich" or "the Group")
Pre-close Trading Statement
Midwich, a specialist audio visual and document solutions distributor to the trade market, is today providing a trading update for the year ended 31 December 2017.
The Group's trading momentum continued in the the second half of the year, with encouraging growth seen across all of the Group's divisions. Additionally, all of the acquisitions made in 2017 performed either in line or ahead of our expectations and continue to benefit from being part of the Group.
Consequently, the Board now expects to report revenue for 2017 of approximately £470 million, representing growth of around 28 per cent over prior year. Movements in exchange rates account for approximately 3 per cent of this growth. The Group has delivered this revenue growth whilst continuing to improve gross margins in line with the Board's expectations. Cash generation to the year end was also strong, finishing marginally ahead of the Board's expectations.
As a result of this strong performance, the Board now anticipates reporting adjusted profit before tax for 2017 comfortably ahead of its previous expectations.
Stephen Fenby, the Group Managing Director commented:
"2017 was another year of solid growth for Midwich, with strong performances from the Group's existing businesses and significant contributions from the acquisitions made through the year. We have been pleased with the integration of all the businesses we acquired and they are all trading in line or ahead of management's expectations. Through 2018, management will continue to explore cross-selling opportunities in the current portfolio while also evaluating the healthy pipeline of potential acquisitions both in the Group's exisiting markets and in new territories."
Midwich will announce its final results for the year ended 31 December 2017 on 13 March 2018.
Enquiries:
Midwich Group plc Stephen Fenby, Managing Director Anthony Bailey, Finance Director
| Tel: +44 (0) 1379 649 200 |
Investec Bank plc James Ireland / James Rudd Carlton Nelson / Robert Baker
| Tel: +44 (0) 20 7597 5970 |
FTI Consulting Alex Beagley / Sam Power
| Tel: +44 (0) 20 3727 1000
|
Note to editors
Midwich is a specialist AV and document solutions distributor to the trade market, with operations in the UK and Ireland, France, Germany, Iberia, the Benelux and Australasia. The Group's long-standing relationships with over 300 vendors, including blue-chip organisations such as Samsung, LG, Epson and NEC, supports a comprehensive product portfolio across major audio visual categories such as large format displays, projectors, digital signage and printers. The Group operates as the sole or largest in-country distributor for a number of its vendors in their respective product sets. The Directors attribute this position to the Group's technical expertise, extensive product knowledge and strong customer service offering built up over a number of years. The Group has a large and diverse base in excess of 10,000 customers, most of which are professional AV integrators and IT resellers serving sectors such as corporate, education, retail, residential and hospitality. Although the Group does not sell directly to end users, it believes that the majority of its products are used by commercial and educational establishments rather than consumers.
Initially a UK only distributor, the Group now has over 700 employees across the UK, Germany, France, Ireland, Iberia, the Benelux, Australia and New Zealand. A core component of the Group's growth strategy is further expansion of its international operations and footprint into strategically targeted jurisdictions.
For further information, please visit www.midwichgroupplc.com