Last checked at 22 Jul 2019 07:00
22 July 2019
Midwich Group PLC
("Midwich" or the "Group")
Pre-close Trading Statement
Midwich Group (AIM: MIDW), a specialist audio visual distributor to the trade market with operations across the UK and Ireland, Continental Europe and Asia Pacific, is today providing a trading update for the six months ended 30 June 2019.
The Group has traded well in the first half, with top line organic growth being supported by a strong contribution from recent acquisitions. Growth was achieved across all geographies on a constant currency basis, with Continental Europe and APAC performing particularly well. Overall gross margins have improved marginally on the prior year period. The Group continues to invest in the infrastructure to develop its business, in particular the central acquisition and integration teams, as well as its start-up businesses in South East Asia and Benelux. The Group has acquired four businesses in the year to date and all are developing as expected. These businesses have given the Group access to three new geographical territories (Italy, Switzerland and Norway) as well as strengthening its capabilities in the audio and lighting segments.
Cash generation in the first half has been slightly ahead of the Board's expectations. The Board continues to expect cash generation for the current year as a whole to be in line with the Group's long-term average performance.
The Board's expectation of the Group's performance for the current full year remains unchanged.
Midwich will announce its half year results for the six months ended 30 June 2019 on 10 September 2019.
For further information:
Midwich Group plc Stephen Fenby, Managing Director Stephen Lamb, Finance Director
| Tel: +44 (0) 13 7964 9200 |
Investec Bank plc (NOMAD and Joint Broker to Midwich) James Rudd Carlton Nelson
| Tel: +44 (0) 20 7597 5970 |
Berenberg (Joint Broker to Midwich) Ben Wright Mark Whitmore Laure Fine
| Tel: +44 (0) 20 3207 7800 |
FTI Consulting Alex Beagley Tom Hufton Fern Duncan | Tel: +44 (0) 20 3727 1000
|
About Midwich Group
Midwich is a specialist AV distributor to the trade market, with operations in the UK and Ireland, Continental Europe and Asia Pacific. The Group's long-standing relationships with over 400 vendors, including blue-chip organisations, support a comprehensive product portfolio across major audio visual categories such as large format displays, projectors, digital signage and professional audio. 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 of over 17,000 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 900 employees across the UK and Ireland, Continental Europe and Asia Pacific. 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