• Midwich reports strong growth across all markets and geographies

        • Midwich has announced its Final Results for the year to 31st December 2019.

          Highlights include:

          Financial

          • Another year of strong growth in revenue and adjusted operating profit
          • Revenue increased by 19.6% to £686.2 million (20.1% on a constant currency basis) including organic revenue growth of 6.0%
          • Maintained robust gross margin following significant improvement in 2018
          • Adjusted operating profit2 increased by 10.6% to £33.5 million (11.0% on a constant currency basis)
          • Adjusted profit before tax2 improved by 8.0% to £31.2 million (8.5% on a constant currency basis)
          • Adjusted EPS increased by 4.7% to 28.5p (2018: 27.2p)
          • Another year of strong cash conversion at 69.5% of adjusted EBITDA
          • Strong balance sheet, with year-end adjusted net debt to EBITDA of 1.4x providing financial flexibility
          • Final dividend of 11.05 pence per share (2018: 10.60 pence per share)
          • Total dividend for the year of 15.90 pence per share increased by 4.6% (2018: 15.20 pence per share)

          Operational

          • Continental Europe contributing the largest share of Group revenue for the first time and growing market share in challenging market conditions
          • Acquisitions made in 2018 fully integrated and delivering favourable Group contribution in 2019
          • The four businesses acquired in 2019 have increased both geographic presence and specialist audio and lighting capabilities
          • Entered two new markets through organic investment
          • Investments in IT, compliance, acquisition and integration capabilities support the Group's organic and acquisitive growth strategy
          • Established an Executive Team responsible for determining and driving operational strategy across the Group

          Post-period end

          • Completed two acquisitions:
          • Starin Marketing, Inc., a value-add AV distributor with a reputation for technical excellence and pre and post-sales support, giving the Group a foundation in North America, the world’s largest AV market
          • Vantage Systems Pty Limited, a specialist Unified Communications business based in Australia
          • Successful equity fundraising of £39.7m in connection with the acquisition of Starin Marketing, Inc. and providing balance sheet flexibility to support the acquisition strategy

          Stephen Fenby, Managing Director of Midwich Group plc said, “in a challenging year of economic and political factors, I am very pleased that the Group continued to grow strongly across all markets and geographies. Our organic growth was robust and we have continued to strengthen our presence in more technically complex market areas. Our targeted acquisition programme means that the Group entered three new countries during the year, in addition to strengthening our specialist audio and lighting businesses.  Post-year-end, I was delighted to welcome Starin Marketing, Inc and Vantage Systems into the Group.  Starin represents not only our entry into the major North American market but also a significant strengthening of our presence in the attractive unified communications market.

          “Market conditions continue to be generally challenging, but stable, albeit that the potential impact of the spread of the Covid-19 virus is still being assessed. At present, excluding any potential impact of the Covid-19 virus, the Board’s expectations for the full year remain unchanged.”

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