Distributor Midwich has hinted it will continue to make targeted acquisitions as it reported flat sales and a slight drop in profits for its fiscal 2012.
For the 12 months to 31 December, the print and audiovisual specialist saw after-tax profit fall 13 per cent to £5.81m on revenue that inched up one per cent to £183.4m.
After paying out £2.7m in dividends, the distributor was able to add £3.1m to its retained reserves. Its net current assets rose by £2.4m to £14.6m.
During 2012, the Diss-based outfit snapped up Mancunian pro audio distributor RW Salt (RWS) and acquired a majority stake in Australian AV distributor Image Design Technology and its New Zealand subsidiary.
Midwich said it considered its financial performance to be "satisfactory" and hinted it will continue to dip into its wallet to make targeted acquisitions.
"The directors expect that the UK economy will continue to be challenging throughout 2013," stated the directors' report.
"We plan to continue investing in either organic growth or through selective acquisition of specialist businesses."
Average staff numbers swelled by 10 per cent to 301 as a result of organic growth and the acquisition of RWS.
"Against the backdrop of a broadly flat UK economy, the company continued to invest in people and in developing our added-value services and support for our customers and vendors," Midwich stated.
Midwich parent M&R320, which also includes the contributions of overseas subsidiaries such as Irish Square One and French Sidev, saw after-tax profits rise six per cent on turnover that rose four per cent to £210.9m.
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