Midwich revenue stalls amid overseas market slowdowns

The distributor returned to growth in the UKI but results couldn’t offset challenging conditions in Germany and North America

Norfolk-based distributor Midwich Group has reported flat results in its trading update for the year ended 31 December 2025, impacted by challenging market conditions overseas.

Revenue is expected to stand at £1.3bn, in line with the prior year, dragged down by a decline in organic and continuing top line.

Organic earnings fell 1.5 per cent year-on-year from FY24, reflecting a drop of around three per cent in H1, partially offset by slight growth of approximately 0.5 per cent in the second half of the year.

Continuing turnover, which excludes the organisation’s Swiss business - accounting for less than two per cent of total sales and currently being wound down - finished the year slightly below 2024.

Last month, the distie announced the closure of MobilePro AG in Switzerland after the business was no longer considered viable.

Midwich returned to growth in the UKI, with earnings rising around seven per cent year-on-year, driven by new vendor launches and market share gains.

The region represents around 40 per cent of the firm’s total sales.

On the other hand, top line in EMEA and North America softened in the second half, declining by around 5.5 per cent and five per cent respectively.

EMEA was impacted by weakness in the German corporate end-user market and delays to education-sector purchasing ahead of new federal funding.

The organisation said this investment is now fully approved, with projects expected to pick up from 2026.

Outside Germany, which represents about one third of regional revenue, full-year earnings rose around nine per cent across the market, driven by demand for more technical, higher-margin product categories.

Midwich’s North American business was reportedly affected by tariff uncertainty and a transition to new technical vendors.

As trade negotiations are finalised and new vendors are being rolled out, the group expects the region to return to growth and deliver strong profitability over the medium term.

While the company described wider AV market conditions as subdued, it remains confident that its focus on development initiatives and customer and vendor needs will continue to support share gains in key markets.

“Whilst 2025 has been challenging for our industry, we have been proactive with our initiatives to drive improved future performance, including developing new vendor and customer relationships, building new revenue streams and pursuing operating and cost saving efficiencies,” said Stephen Fenby, group MD at Midwich.

“These initiatives include exploring opportunities around implementing AI solutions designed to improve the productivity of the business and drive future growth.”

He added the company will remain focused on higher-margin, specialist product areas as it continues to target new growth opportunities, while maintaining tight control of overheads.

Looking ahead, Midwich remains confident it can deliver both organic and inorganic growth over the longer term.

The distributor will announce its final results for the year ended 31 December 2025 on 17 March.