Last checked at 23 Oct 2020 07:00
23 October 2020
Midwich Group plc
("Midwich" or "the Group")
Transition of Music Tribe US distribution
Midwich Group (AIM: MIDW), a specialist audio visual distributor to the trade market with operations across the UK and Ireland, Continental Europe, Asia-Pacific and North America, today announces that it will be ending distribution of Music Tribe products by its North American business Starin Marketing Inc ("Starin").
Starin and Music Tribe have decided to transition Starin's current US distribution and channel management to a Music Tribe owned distribution model. The current structure of channel partner-reseller service, rep management and product delivery will be transitioned to Music Tribe to merge into its existing warranty and service support operation in Nevada, US.
As part of the transition, which is expected to complete by the end of the current year, Starin will migrate selected process and a small number of team members to Music Tribe together with the return of unsold Music Tribe inventory.
Bobby Swartz, President of Starin, commented:
"Following more than 10 years of successful collaboration between Music Tribe and Starin, we are committed to a smooth and efficient transition over the next few months. This development will allow Starin to fully focus on higher margin, value added AV products and distribution, supporting its customers with technical expertise, extensive product knowledge and strong customer service. Starin continues to invest in and grow its unified communications practice both domestically and globally via the Midwich Group."
For the first six months of 2020, Midwich recorded revenue from the distribution of Music Tribe products in North America of £29 million and a profit contribution of £0.3 million. As a result, the Board's expectations for the underlying profitability of the Group remain unchanged as a result of this transfer.
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 Alix Mecklenberg-Solodkoff
| Tel: +44 (0) 20 3207 7800 |
FTI Consulting Alex Beagley Tom Hufton Rafaella de Freitas | 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 and North America. The Group's long-standing relationships with over 500 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 20,000 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 around 1,000 employees across the UK and Ireland, Continental Europe, Asia-Pacific and North America. 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