REG - Midwich Group PLC - Year End Trading Update

MidwichAnnouncement

19/01/2022 07:05

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RNS Number : 8733Y  Midwich Group PLC  19 January 2022

19 January 2022

Midwich Group plc

("Midwich" or the "Group")

 

Year End Trading Update

 

Midwich Group (AIM: MIDW), a global specialist audio visual distributor to
the trade market, is today providing a trading update for the year ended 31
December 2021.

 

The Group finished the year strongly and the Board now expects to report
revenue for 2021 in excess of £850 million, representing growth of
approximately 20% over the prior year (23% at constant currency). The gross
margin improved in line with the Board's expectations. Adjusted net debt at
the end of the year of approximately £57 million (around 1.5 times adjusted
EBITDA) was in line with Board's expectations.

 

As a result of this strong performance, the Board now anticipates reporting
adjusted profit before tax not less than £31.5 million for 2021, which is
ahead of previous expectations.

 

Stephen Fenby, the Group Managing Director, commented:

 

"2021 was a very successful year for the Group, despite continued market
challenges caused by the pandemic. Coming into the year, our ambitious goal
was to return the Group's profitability back to pre-Covid 19 levels. We
achieved this, finishing the year with the highest revenues and net profit in
the Group's history. I would like to thank our team for this fantastic
result.

 

Since joining the Group in 2021, NMK, eLink and Intro 2020 have all performed
well, and we look forward to working with our new colleagues at DVS, who
joined the Group in early January.

 

In 2022, the Group's focus will be on maintaining a strong growth trajectory
whilst supporting customers through ongoing widespread product shortages,
exploring cross-selling opportunities in the current portfolio and also
evaluating the healthy pipeline of potential acquisitions."

 

Midwich will announce its final results for the year ended 31 December
2021 on 8 March 2022.

 

 

 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 / Mark Whitmore / Alix Mecklenberg-Solodkoff
 FTI Consulting                                            +44 (0) 20 3727 1000

Alex Beagley / Tom Hufton / Rafaella de Freitas

 

About Midwich Group

 

Midwich is a specialist AV distributor to the trade market, with operations in
the UK and Ireland, EMEA, Asia Pacific and North America. The Group's
long-standing relationships with over 500 vendors, including blue-chip
organisations, support a comprehensive product portfolio across major audio
visual categories such as large format displays, projectors, digital signage
and professional audio. The Group operates as the sole or largest in-country
distributor for a number of its vendors in their respective product sets.

 

The Directors attribute this position to the Group's technical expertise,
extensive product knowledge and strong customer service offering built up over
a number of years. The Group has a large and diverse base of over 20,000
customers, most of which are professional AV integrators and IT resellers
serving sectors such as corporate, education, retail, residential and
hospitality. Although the Group does not sell directly to end users, it
believes that the majority of its products are used by commercial and
educational establishments rather than consumers.

 

Initially a UK only distributor, the Group now has around 1,000 employees
across the UK and Ireland, Continental Europe, Asia Pacific and North America.
A core component of the Group's growth strategy is further expansion of its
international operations and footprint into strategically targeted
jurisdictions.

 

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

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