Midwich has released a trading update for the year ended 31st December 2018.
The group’s trading momentum continued in the second half of the year, with encouraging growth seen across all of the Group’s divisions. Additionally, all of the acquisitions made in 2017 performed either in line with or ahead of the board’s expectations and continue to benefit from being part of the group.
Consequently, the board now expects to report revenue for 2018 in excess of £570 million, representing growth of approximately 20 per cent over the prior year (20 per cent at constant currency). The group has delivered revenue growth whilst continuing to improve gross margins in line with the board’s expectations. Cash generation was also strong and the cash conversion rate for the year was ahead of the prior year.
As a result of this strong performance, the board now anticipates reporting adjusted profit before tax for 2018 to be slightly ahead of its previous expectations.
Stephen Fenby, Managing Director said, “2018 was another year of good growth for Midwich, with strong organic performances from the group’s existing businesses and significant full year contributions from the acquisitions made in 2017. In addition, we have been pleased with the integration of the three businesses acquired during 2018 which are all trading in line with or ahead of management’s expectations and, given their timing, have only had a small impact on the 2018 results. Post the year end, we acquired MobilePro AG, a leading AV distributor based in Zurich, Switzerland. This new territory further expands the group’s geographical reach.
“Through 2019, management will continue to explore cross-selling opportunities in the current portfolio while also evaluating the healthy pipeline of potential acquisitions both in the group’s existing markets and in new territories.”
Midwich will announce its final results for the year ended 31st December 2018 on 12 March 2019.