Midwich to beat expectations as acquisitions drive margins improvement

Specialist audio visual and document solutions distributor Midwich on Friday reported that it will exceed expectations for the full year following an “encouraging first half performance”.

The AIM traded firm said top line growth was delivered across all regions the first half of the year, with the acquisition of three new businesses in 2017 driving an improvement in overall gross margins.

During the year Midwich bought audio and lighting distributor Sound Technology, Dutch audio-visual provider Gebroeders van Domburg and Spain and Portugal-based distributor Earpro.

Cash generation was lower due to an investment in working capital, but Midwich said that it continues to expect it to be in line with long term forecasts.

The company will announce its half year results for the six months ended 30 June on 11 September.

Midwich’s shares were up 3.82% at 680.00p at 1031 BST.