Midwich turns up the volume on H1 revenues

Specialist Audio-Visual distributor Midwich Group PLC (LON: MIDW) posted year-on-year revenue growth for the first half. Despite this, contraction in some of its profit indices led a dip in its share price.

The Group’s revenue spiked 19% on-year for the first half, up to £314.8 million. Additionally, gross profits boomed 22% from £42.9 million, to £52.2 million, and adjusted operating profit rose 9% to £14.6 million.

However, on a statutory basis the Company’s operating profit dipped comparatively by 6%, from £11.1 million to £10.5 million, and profit after tax contracted 1% to £9.0 million.

Midwich shareholders saw similar progress, with adjusted EPS increasing 6% to 12.78p and interim dividend per share up 5% on-year, to 4.85p.

The year said that its prior year acquisitions were integrated and performing well, and added that it had acquired three businesses in H1 2019. Further, it noted it made investments in IT, compliance, acquisition and compliance capabilities.

Midwich Group comments

Stephen Fenby, Managing Director, said,

“The Group has had another strong first half and I am pleased with our overall performance, particularly given political and economic uncertainties around the globe. The increase in the Group’s gross margin percentage reflects strong performance from the core business and a positive contribution from the acquisitions made in 2018 and the first half of 2019. The more specialist nature of the acquired businesses ensures that our value add to customers and vendors continues to increase.”

“We have been busy working on opportunities to extend the Group’s reach and capabilities through the period and were pleased to complete the acquisitions of MobilePro (Switzerland), Prase (Italy) and AV Partner (Norway), each of which represents the Group’s entry into a new territory. In addition, the acquisitions of Prase and (post period end) EES in Spain have strengthened the Group’s capabilities in the audio and lighting markets respectively. We continue to have a healthy pipeline of strategic opportunities and have invested in the Group’s acquisition and integration teams in the first half. We will continue our disciplined approach to acquire businesses that add value while both strengthening and diversifying our product offering and geographical reach.”

“The strong performance reported in the first half and contributions from recent acquisitions, give the Board confidence in the prospects for the Group.”

Investor notes

The Company’s shares dipped slightly by 0.96% or 4.82p per share 10/09/19 12:18 BST. The Group’s p/e ratio is 18.33, their dividend yield stands at 3.07%.

Elsewhere in the tech sector, there were updates from; ProPhotonix Ltd (LON: PPIX), Frontier Developments PLC (LON: FDEV), Gamma Communications PLC (LON: GAMA), Maintel Holdings plc (LON: MAI), Bigblu Broadbend PLC (LON: BBB), Avanti Communications Group PLC (LON: AVN) and Maestrano Group (AIM: MNO).


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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.