Specialist audio visual distributor Midwich Group PLC (LON: MIDW) has seen its share price rally after posting a positive trading update fro the six month period ended 30 June 2019.
The Company said it organic growth especially in its Continental European and Asia Pacific operations, which was led by contributions from its recent acquisitions.
Midwich added that H1 cash generation was ahead of Board expectations and that the Company expected cash generation for the full year to be in line with the Group’s average performance. The Board’s guidance for the Group’s full-year performance remained unchanged.
Midwich Group statement
The Company’s statement elaborated,
“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.”
Following the update, the Company’s shares rallied 3.64% or 20.00p to 570.00p a share 22/07/19 12:02 BST. HSBC analysts initiated a ‘Buy’ stance on Midwich Group stock.
Elsewhere in the tech sector, there were updates from; Boku Inc (LON: BOKU), Telit Communications Plc (LON: TCM), TP Group PLC (LON: TPG), Mobile Streams Plc (LON: MOS), Sophos Group plc (LON: SOPH) and MiriAd Advertising plc (LON: MIRI).