Midwich “trading well” thanks to recent acquisitions

Midwich Group, the specialist A/V distributor to the trade market, has announced that overall gross margins have improved “marginally” for the six months ending 30 June 2019, compared to the same period last year. This is part of the company’s recent trading update, which it released today (Monday).

The Group said it has “traded well in the first half, with top line organic growth being supported by a strong contribution from recent acquisitions”.

Growth was achieved across all geographies on a constant currency basis, with Continental Europe and APAC “performing particularly well”. Midwich Group continues to invest in the infrastructure to develop its business, in particular the central acquisition and integration teams, as well as its start-up businesses in South East Asia and Benelux. The Group has acquired four businesses in the year to date and all are “developing as expected”, it said.

These businesses have given the Group access to three new geographical territories (Italy, Switzerland and Norway) as well as strengthening its capabilities in the audio and lighting segments.

Cash generation in the first half has been slightly ahead of the Board’s expectations. The Board continues to expect cash generation for the current year as a whole to be in line with the Group’s long-term average performance.

“The Board’s expectation of the Group’s performance for the current full year remains unchanged,” the report said.