Midwich's shares spike on bullish trading update

Distributor's shares rise by nearly a fifth as it indicates full-year profits will be well ahead of expectations

Midwich's share price has soared to a five-month high after the distributor revealed to the market that it has enjoyed a barnstorming finish to 2016.

The print and audiovisual specialist said it saw growth across all its divisions in the second half, in particular its overseas businesses, adding that it has enjoyed a "better than expected" contribution from recent acquisition Holdan.

Shares at the Diss-based outfit were up by almost a fifth in trading this morning after it indicated that adjusted profit before tax for 2016 will be "comfortably ahead of expectations".

At the mid-point of the year, Samsung LG, Epson and NEC partner Midwich had raked in £6.4m in adjusted profit before tax.

Revenue for the year ending 31 December 2016 will be 18 per cent ahead of 2015, at about £370m, according to a trading statement issued by the distributor, which debuted on the Alternative Investment Market (AIM) last May.

Midwich said it has benefited from the continued weakness in sterling, adding that movements in exchange rates account for about three percentage points of that growth.

In 2015, the UK accounted for £221m of its £314m revenues, with France, Germany and Australasia chipping in £24m, £51m and £18m respectively.

Midwich's share price soared from 230 pence to as much as 272.28 pence in trading this morning, an 18 per cent leap, with shares now trading at 263.58 pence.

The distributor's shares debuted on AIM on 6 May last year at 208 pence, netting shareholders a windfall of nearly £50m.