Midwich, the listed specialist audio visual distributor to the trade, has provided a positive trading update for the year ended 31 December 2018. The expanding company expects to report annual revenue in excess of £570m, representing constant currency growth of around 20% over the prior year.
“The group's trading momentum continued in the second half of the year, with encouraging growth seen across all of the group's divisions,” said the statement. “Additionally, all of the acquisitions made in 2017 performed either in line with or ahead of the board's expectations, and continue to benefit from being part of the group,” it added.
Midwich said gross margins were in line with its expectations. It now anticipates that adjusted profit before tax for 2018 will be “slightly ahead” of its previous estimates. Stephen Fenby, Midwich group managing director, said: "2018 was another year of good growth, with strong organic performances from the group's existing businesses and significant full year contributions from the acquisitions made in 2017.
“In addition, we have been pleased with the integration of the three businesses acquired during 2018, which are all trading in line with or ahead of management's expectations and, given their timing, have only had a small impact on the 2018 results.”
Post year end, the company also acquired MobilePro AG, a leading AV distributor based in Zurich, Switzerland (as reported by IT Europa). This new territory further expands the group's geographical reach in EMEA.
Fenby added: "Through 2019, management will continue to explore cross-selling opportunities in the current portfolio, while also evaluating the healthy pipeline of potential acquisitions both in the group's existing markets and in new territories."
Midwich will announce its final results for the year on 12 March 2019.
