Midwich Group has provided a trading update for the six months ended 30th June 2019.
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.
Cash generation in the first half has been slightly ahead of the board's expectations. The board continues to expect cash generation for the current year as a whole to be in line with the group's long-term average performance.
The board’s expectation of the group's performance for the current full year remains unchanged. Midwich will announce its half-year results for the six months ended 30th June 2019 on 10th September 2019.