Midwich announces first results as a public company
AIM-listed distributor posts double-digit growth, driven partly by 'impressive growth' in audiovisual business
Distributor Midwich has posted a rise in sales and underlying profits in its first results as a public company.
Having debuted on the Alternative Investment Market (AIM) in May, the print and audiovisual (AV) specialist this morning said it was pleased with its performance for its fiscal first half ending 30 June.
Driven by "impressive growth" in its AV business and overseas growth, revenues rose 12 per cent year on year to £158.4m, with adjusted operating profit swelling 23 per cent to £7.9m.
Midwich said the uncertainties sparked by the Brexit vote have so far had a "minimal impact" on its business, adding that trading in its second half - when it tends to do the bulk of its business - has so far been in line with expectations.
Chairman Andrew Herbert said the distributor had enjoyed "particularly encouraging growth" outside the UK, with France growing 43 per cent and Germany 23 per cent. UK and Ireland sales grew seven per cent.
"We are pleased with the performance over the first six months of the year, and in particular the continuing progress of the group following the successful IPO in May," Herbert said.
Midwich signed a distribution agreement with whiteboard vendor SMART in June in the wake of the collapse of SMART's one-time exclusive distributor Steljes. It said it was pleased with the initial progress of that partnership.
Herbert claimed that Midwich is well placed to continue its buy-and-build strategy in new and existing territories.
However, the Diss-based distributor conceded that it had stated the wrong figures for one of two acquisitions it announced last week - it is actually paying a maximum consideration of £7.1m for UK audiovisual distributor Holdan, not the £7.9m originally stated.
Midwich's share price took a big knock from the Brexit vote, but is now trading at nearly 250 pence, well up on the 235 pence at which it debuted on 6 May.