REG - Midwich Group PLC - Trading Statement

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RNS Number : 5091P  Midwich Group PLC  20 January 2026

20 January 2026

 

Midwich Group plc

("Midwich" or the "Group")

 

Year End Trading Update

 

Results in line, with return to growth in the second half year

 

 

Midwich Group plc (AIM: MIDW), a global specialist audio visual distributor to
the trade market, is today providing a trading update for the year ended 31
December 2025.

 

Revenue for the year is expected to be c.£1.3bn (2024: £1.3bn) reflecting a
return to growth in the second half year. Gross margins held up well and are
expected to be broadly similar to the prior year and adjusted profit before
tax is expected to be in line with the Board's previous expectations of
£30m*.

 

Continuing revenue**, on a constant currency basis, finished the year slightly
below 2024. Organic revenue was around 1.5% below 2024, a combination of a
decline of c.3% in H1 and growth of c.0.5% in H2.

 

Whilst the wider AV market conditions remain subdued, the Group's proactive
focus on growth initiatives and the needs of its customers and vendors
continues to support share gains in many key markets. We were pleased to see a
return to growth in the UK & Ireland ("UK&I") which grew approximately
7% versus 2024, as a result of new vendor launches and market share gains.
UK&I represents approximately 40% of Group revenue. The Group also saw a
softening of revenue headwinds in both EMEA and North America in the second
half of the year.

 

Full year EMEA revenue reduced by around 5.5% vs 2024 (H1: -7%; H2: -4%) on a
constant currency basis. In 2025, this region was impacted by significant
softness in the German corporate end user market and, particularly, major
delays to purchase decisions in education ahead of new federal funding, which
we understand is now fully approved with projects expected to pick up from
2026. Outside of Germany (which represents around one third of regional
revenue), EMEA saw full year revenue growth of approximately 9%, reflecting
stronger demand for more technical, higher margin, product categories.

 

Midwich's North American business saw revenues decline approximately 5% on a
constant currency basis, resulting from tariff uncertainty and the planned
transition to new technical vendors. As trade negotiations are finalised, and
new vendors come on stream, we expect to see this region return to growth and
deliver strong profitability over the medium term.

 

The Group delivered strong cash generation in the year, of over 100% of
adjusted EBITDA, ahead of our long-term expectations of 70-80%. Adjusted net
debt*** at 31 December 2025 was c.£130 million, slightly below December 2024
(representing approximately 2.3 times adjusted EBITDA*). In addition, and as
disclosed at its interim results in September 2025, the Group's review of its
ERP deployment remains ongoing and is expected to be completed by the
publication of its full year results in March 2026.

 

Stephen Fenby, Group Managing Director, commented:

 

"Whilst 2025 has been challenging for our industry, we have been proactive
with our initiatives to drive improved future performance, including
developing new vendor and customer relationships, building new revenue streams
and pursuing operating and cost saving efficiencies. These initiatives include
exploring opportunities around implementing AI solutions designed to improve
the productivity of the business and drive future growth.

 

I am pleased to see a return to revenue growth in the second half of the year,
whilst our continued focus on operating efficiency and cash generation
resulted in strong second half profits and full year operating cash
conversion. Midwich remains a leading player in a large industry, and we
continue to maintain or grow market share in key profitable regions, with a
focus on delivering the best service to our customers and vendors.

 

The Group's long-term focus remains on higher margin, more specialist product
areas and we continue to target and exploit new growth opportunities, as well
as retaining a tight focus on overhead efficiencies.

 

Midwich remains well positioned for the year ahead and the Group continues to
deliver both organic and inorganic growth in the longer term. I would like to
thank all of my colleagues across the Group, together with our customers and
vendor partners for their continued support."

 

Midwich will announce its final results for the year ended 31 December 2025 on
17 March 2026.

 

* Adjusted PBT represents continuing business operating profit less adjusted
finance costs. It is stated before acquisition related expenses, share based
payments and associated employer taxes, exceptional items, amortisation of
acquire intangibles and impairments. Adjusted EBITDA represents continuing
business operating profit before acquisition related expenses, share based
payments and associated employer taxes, exceptional items, depreciation,
amortisation and impairments and, for leverage purposes, includes a proforma
twelve-month contribution from acquisitions

**Continuing business revenue excludes the Group's small Swiss business (less
than 2% of revenue) which is in the process of being closed

*** Adjusted net debt is borrowings less cash and cash equivalents and
excludes lease liabilities

 

 

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

 

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 21,000, including
professional integrators, event production companies and IT resellers in
sectors such as education, corporate, retail and live events.

Enabling tomorrow.

With about 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/) .

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

 

 

 

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