REG - Midwich Group PLC - AGM Statement

MidwichAnnouncement

13/05/2025 07:02

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RNS Number : 3474I  Midwich Group PLC  13 May 2025

This announcement contains inside information for the purposes of the market
abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic
law by virtue of the European Union (Withdrawal) Act 2018, as amended.

 

13 May 2025

 

Midwich Group plc

("Midwich" or the "Group")

 

AGM Statement

 

Midwich Group (AIM: MIDW), a global specialist audio visual ("AV") distributor
to the trade market, will hold its Annual General Meeting at 10.00am today at
the Group's head office in Diss.

 

At the meeting Andrew Herbert, Chairman, will make the following statement:

 

"Midwich demonstrated resilience against an increasingly challenging market
backdrop in 2024 and made further strategic progress, including record revenue
and gross margin, increased specialisation, further strategic investments and
continued development of the leadership team.

 

However, the challenging market conditions in 2024 have continued into 2025,
with increased tariffs and macro-economic uncertainty adding further to these
headwinds. As a result, the Group has experienced a mid-single digit decline
in organic revenue year to date, despite achieving record market share with
many of our key vendors.

 

In the year to date, the Group has delivered revenue growth in the UK&I,
which is up mid-single digit year to date, but this has been offset by
declines in both EMEA and North America, which is primarily attributable to
softer corporate and education demand and some supply chain disruption.

 

Whilst gross margins have improved slightly year to date, the lower revenue,
combined with ongoing operating cost inflation, has resulted in a significant
decline in operating profit. The Group is proactively increasing its market
share and accelerating sales activity by deepening both its customer and
vendor relationships. There is also a strong focus on reducing overheads and
capital expenditure through both near term actions and ongoing investment in
automation and productivity.

 

The Board therefore believes it prudent to assume that trading conditions will
remain challenging for the rest of 2025 and, as such, now expects adjusted
operating profit for the full year to be materially below its prior
expectations. As previously disclosed, both industry data and the benefit of
encouraging new vendor relationships launched in 2024 mean that the Board
continues to expect trading for the current year to have a higher weighting to
the second half than prior years.

 

Midwich remains well positioned as the leading global specialist Pro AV
distributor, and the Group's £1.3bn revenue in 2024 represented less than 1%
of the global market and 3-4% of its target addressable market.

 

Over the coming years, we anticipate there being significant opportunities to
continue growing faster than the overall market, both organically and when
appropriate through acquisition and we remain excited by the long-term
prospects for the business."

 

Midwich intends to announce a trading update for the six months to 30 June
2025 on 21 July 2025.

 

For further information:

 

 Midwich Group plc                                       +44 (0) 1379 649200
 Stephen Fenby, Managing Director
 Stephen Lamb, Finance Director
 Investec Bank plc (NOMAD and Joint Broker to Midwich)   +44 (0) 20 7597 5970

 Carlton Nelson / Ben Griffiths
 Berenberg (Joint Broker to Midwich)                     +44 (0) 20 3207 7800
 Ben Wright / Richard Andrews
 FTI Consulting                                           +44 (0) 20 3727 1000
 Alex Beagley / Tom Hufton / Matthew Young

                                                         midwich@fticonsulting.com (mailto:midwich@fticonsulting.com)

 

About Midwich Group

 

Specialisation at scale.

Midwich Group is a network of businesses which partner with the world's
leading technology companies to accelerate their growth. Selling into over 50
countries from 23 global locations, the Group specialises in audiovisual
technology - whether in state-of-the-art meeting rooms or on a festival main
stage, our solutions help the world connect, communicate, or experience wow
moments.

 

Taking technology further.

With services ranging from product distribution to complex system design,
focused marketing campaigns to flexible financing solutions, and showcase
events to seed funding for startups, the Group's ever-expanding offering is
designed to add value and solve its partners' biggest challenges.

 

This has enabled the Group to maintain strong relationships with global
manufacturers and a diverse customer base of over 24,000, including
professional integrators, event production companies and IT resellers in
sectors such as education, corporate, retail and live events.

 

Enabling tomorrow.

With over 1,800 employees across the UK and Ireland, EMEA, Asia Pacific and
North America, the company is committed to being a responsible employer.

 

The Group wants to do the right thing and actively works to limit its impact
on the environment and communities, and recognises the importance of giving
back - find out more about our sustainability activities here
(https://midwichgroupplc.com/sustainability/) .

 

Help us go further, together.

 

For further information, please visit www.midwichgroupplc.com
(http://www.midwichgroupplc.com/)

 

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