Midwich full year top line stagnates despite UKI and H2 momentum

The distie expects “little improvement” in market conditions across 2026

Norfolk-based distributor Midwich has reported declining results for the year ended 31 December 2025.

Top line dipped 1.5 per cent to £1.27bn, compared with £1.29bn the previous year.

Gross profit fell 1.6 per cent to £225.2m (FY24: £228.8m).

The company said its performance was impacted by macroeconomic headwinds and market uncertainty, alongside the effects of election cycles, higher taxes, interest rates and inflation over the past two years, which have dampened demand for mainstream AV products.

Revenue declined 2.4 per cent in H1, followed by a 0.8 per cent increase in the second half.

Midwich said the return to growth, although modest, signals an encouraging trend.

Market breakdown

Performance in the UKI helped partially offset the wider decline.

This was the only region to record growth, with revenue rising 6.7 per cent to £508.3m (FY24: £476.4m), thanks to a focus on increasing customer share of wallet, onboarding new vendors and supporting existing manufacturer partners to grow market share.

Elsewhere, earnings declined across all regions.

EMEA turnover fell 5.3 per cent to £517.5m, impacted by a challenging German market, where demand for corporate and education solutions softened.

Excluding Germany, the rest of EMEA grew 9.7 per cent, driven by the Middle East, Southern Europe and the Netherlands.

APAC top line declined 4.2 per cent to £44m.

NORAM recorded the steepest drop, with sales down 8.9 per cent to £201m, affected by tariff uncertainty and the loss of a major vendor in Canada.

Midwich also reshaped parts of its international footprint, closing MobilePro AG in Switzerland, acquired in 2019, as well as a smaller unit in North America.

“Against a backdrop of challenging macroeconomic and industry conditions, we determined that 2025 was a year focused on driving efficiencies and continuing to strengthen our market positioning,” said CEO Stephen Fenby.

“Our geographic coverage, technical specialisation and the skills and dedication of our team mean the group is well placed to pursue new opportunities and benefit from improvements in market conditions.”

‘Little improvement’ in 2026

Midwich expects “little improvement” in market conditions across the rest of 2026.

The distie plans to enhance its technology portfolio and market operations, while continuing to drive efficiency across the business through AI and systems tools.

It is also focusing on expanding its vendor base and introducing new technologies.

The company expects momentum in Germany to improve in 2026.

While its last acquisition was prodyTel Distribution in late 2023, M&A activity has slowed due to market conditions. However, Midwich said it remains optimistic about resuming acquisitions in 2026.

Earlier this month, the firm also appointed Adam Councell as CFO, replacing Stephen Lamb after eight years in the role.

“New business lines and vendor relationships, combined with reshaping the business and tight cost control, have put us in a strong position for 2026 and beyond,” Fenby added.

“The group remains focused on developing new revenue streams, driving operational efficiencies, and ensuring we are ready to capitalise as market conditions improve and momentum builds.”