UK's Midwich 2025 revenue falls on mainstream product weakness

Midwich

17/03/2026 07:15

Corrects revenue metric to "adjusted revenue" in headline, first bullet of Overview and in Key Details table; adds "adjusted" to Gross Profit metric in Key Details

Overview

UK AV distributor's 2025 adjusted revenue declined 1.5% yr/yr, gross margin remained at record levels

Adjusted EPS for 2025 fell 17% yr/yr

Outlook

Midwich expects little improvement in AV market conditions in 2026

Company expects actions taken to support a return to profit growth in 2026

Midwich plans to resume M&A activity as part of its growth strategy in 2026

Result Drivers

MAINSTREAM PRODUCT WEAKNESS - Co said continued price erosion in display and projection products and halved revenue in legacy document solutions drove declines in mainstream categories

TECHNICAL AND DRONES GROWTH - Growth in most technical product categories and strong contribution from the drones business offset some declines

REGIONAL VARIATION - UK & Ireland saw strong profit growth from market share gains and new vendors; EMEA decline driven by Germany, North America by key vendor loss and tariffs

Company press release: ID:nRSQ8528Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Adjusted Revenue
GBP 1.27 bln
FY Adjusted EBIT
GBP 43.60 mln
FY Adjusted Pretax Profit
GBP 30.50 mln
FY EBIT
-GBP 14.90 mln
FY Adjusted Gross Profit
GBP 225.20 mln
FY Pretax Profit
-GBP 30.50 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the office equipment peer group is "buy."

Wall Street's median 12-month price target for Midwich Group PLC is GBp328.50, about 107.9% above its March 16 closing price of GBp158.00

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)