Midwich reports record full-year financial performance

Specialist audio visual distributor Midwich Group reported a record financial performance and further market share gains in its final results on Tuesday.

The AIM-traded company said its revenue increased 40.7% to £1.2bn, which it put down to strong organic growth globally and contribution from the acquisitions of DVS and Nimans.

Its revenue growth at constant exchange rates came in at 38.6%, which included 20.7% organic growth.

Adjusted profit before tax grew 41.5% year-on-year in the 12 months ended 31 December to £45.2m, or 37.5% on a constant currency basis.

The net debt-to-adjusted EBITDA ratio at year end narrowed to 1.6x from the interim period, which the board said was “well within” its comfort range.

Its directors proposed a final dividend of 10.5p, taking the full-year dividend to 15p, up from 11.1p in 2021, excluding the special dividend of 3p per share.

“We have delivered an outstanding performance this year, with revenues increasing 40.7% to over £1.2bn, a record level, made significant market share gains and entered new markets,” said managing director Stephen Fenby.

“2022 saw the strongest annual growth in the group's history - our organic growth was supplemented by a significant contribution from the two UK businesses acquired early in the year.

“Earnings per share was 26.6% higher than in 2019 - the last full pre-pandemic year.”

Fenby said the impact of the pandemic somewhat cooled in the period, with product shortages easing - but not completely - and the cost of shipping containers reducing significantly during the year.

“We saw the resumption of a significant part of the live events and hospitality markets, and the corporate market strengthened during the year.

“Although still early into the new financial year and mindful of the slower general economic conditions and higher interest rate environment, we remain confident that 2023 will see yet another year of growth in excess of the overall market.”

At 1333 GMT, shares in Midwich Group were up 4.57% at 458p.

Reporting by Josh White for Sharecast.com.