Midwich Group PLC Pre-close Trading Statement (0672C)
17 January 2018 - 6:00PM
UK Regulatory
TIDMMIDW
RNS Number : 0672C
Midwich Group PLC
17 January 2018
17 January 2018
Midwich Group Plc
("Midwich" or "the Group")
Pre-close Trading Statement
Midwich, a specialist audio visual and document solutions
distributor to the trade market, is today providing a trading
update for the year ended 31 December 2017.
The Group's trading momentum continued in the the second half of
the year, with encouraging growth seen across all of the Group's
divisions. Additionally, all of the acquisitions made in 2017
performed either in line or ahead of our expectations and continue
to benefit from being part of the Group.
Consequently, the Board now expects to report revenue for 2017
of approximately GBP470 million, representing growth of around 28
per cent over prior year. Movements in exchange rates account for
approximately 3 per cent of this growth. The Group has delivered
this revenue growth whilst continuing to improve gross margins in
line with the Board's expectations. Cash generation to the year end
was also strong, finishing marginally ahead of the Board's
expectations.
As a result of this strong performance, the Board now
anticipates reporting adjusted profit before tax for 2017
comfortably ahead of its previous expectations.
Stephen Fenby, the Group Managing Director commented:
"2017 was another year of solid growth for Midwich, with strong
performances from the Group's existing businesses and significant
contributions from the acquisitions made through the year. We have
been pleased with the integration of all the businesses we acquired
and they are all trading in line or ahead of management's
expectations. Through 2018, 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 exisiting markets and in new territories."
Midwich will announce its final results for the year ended 31
December 2017 on 13 March 2018.
Enquiries:
Midwich Group plc Tel: +44 (0) 1379
Stephen Fenby, Managing Director 649 200
Anthony Bailey, Finance Director
Investec Bank plc Tel: +44 (0) 20 7597
James Ireland / James Rudd 5970
Carlton Nelson / Robert Baker
FTI Consulting Tel: +44 (0) 20 3727
Alex Beagley / Sam Power 1000
Note to editors
Midwich is a specialist AV and document solutions distributor to
the trade market, with operations in the UK and Ireland, France,
Germany, Iberia, the Benelux and Australasia. The Group's
long-standing relationships with over 300 vendors, including
blue-chip organisations such as Samsung, LG, Epson and NEC,
supports a comprehensive product portfolio across major audio
visual categories such as large format displays, projectors,
digital signage and printers. The Group operates as the sole or
largest in-country distributor for a number of its vendors in their
respective product sets. The Directors attribute this position to
the Group's technical expertise, extensive product knowledge and
strong customer service offering built up over a number of years.
The Group has a large and diverse base in excess of 10,000
customers, most of which are professional AV integrators and IT
resellers serving sectors such as corporate, education, retail,
residential and hospitality. Although the Group does not sell
directly to end users, it believes that the majority of its
products are used by commercial and educational establishments
rather than consumers.
Initially a UK only distributor, the Group now has over 700
employees across the UK, Germany, France, Ireland, Iberia, the
Benelux, Australia and New Zealand. A core component of the Group's
growth strategy is further expansion of its international
operations and footprint into strategically targeted
jurisdictions.
For further information, please visit
www.midwichgroupplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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