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19 Jan 2022 07:00
19 January 2022
Midwich Group plc
("Midwich" or the "Group")
Year End Trading Update
Midwich Group (AIM: MIDW), a global specialist audio visual distributor to the trade market, is today providing a trading update for the year ended 31 December 2021.
The Group finished the year strongly and the Board now expects to report revenue for 2021 in excess of £850 million, representing growth of approximately 20% over the prior year (23% at constant currency). The gross margin improved in line with the Board's expectations. Adjusted net debt at the end of the year of approximately £57 million (around 1.5 times adjusted EBITDA) was in line with Board's expectations.
As a result of this strong performance, the Board now anticipates reporting adjusted profit before tax not less than £31.5 million for 2021, which is ahead of previous expectations.
Stephen Fenby, the Group Managing Director, commented:
"2021 was a very successful year for the Group, despite continued market challenges caused by the pandemic. Coming into the year, our ambitious goal was to return the Group's profitability back to pre-Covid 19 levels. We achieved this, finishing the year with the highest revenues and net profit in the Group's history. I would like to thank our team for this fantastic result.
Since joining the Group in 2021, NMK, eLink and Intro 2020 have all performed well, and we look forward to working with our new colleagues at DVS, who joined the Group in early January.
In 2022, the Group's focus will be on maintaining a strong growth trajectory whilst supporting customers through ongoing widespread product shortages, exploring cross-selling opportunities in the current portfolio and also evaluating the healthy pipeline of potential acquisitions."
Midwich will announce its final results for the year ended 31 December 2021 on 8 March 2022.
Midwich Group plcStephen Fenby, Managing DirectorStephen Lamb, Finance Director | +44 (0) 1379 649200 |
Investec Bank plc (NOMAD and Joint Broker to Midwich) Carlton Nelson / Ben Griffiths | +44 (0) 20 7597 5970 |
Berenberg (Joint Broker to Midwich)Ben Wright / Mark Whitmore / Alix Mecklenberg-Solodkoff | +44 (0) 20 3207 7800 |
FTI ConsultingAlex Beagley / Tom Hufton / Rafaella de Freitas | +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, EMEA, 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
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