Success continues for Diss-based firm
A profits increase bigger than first forecast is expected at Diss firm Midwich.
The success story of the specialist audio visual distributor continued throughout 2018, the company said in a trading update.
Encouraging growth was seen across all divisions and all acquisitions made in 2017 performed either in line with or ahead of the board’s expectations.
Consequently, the update added, the board now expects to report revenue for 2018 in excess of £570 million, representing growth of approximately 20 per cent over 2017.
The group has delivered revenue growth while continuing to improve gross margins in line with the board’s expectations.
Cash generation was also strong and the cash conversion rate for the year was ahead of the prior year.
As a result of this strong performance, the board now anticipates reporting adjusted profit before tax for 2018 to be slightly ahead of its previous expectations.
Group managing director Stephen Fenby, pictured, said: “2018 was another year of good growth for Midwich, 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.”
Since the year end, Midwich has acquired MobilePro AG in Zurich, which Mr Fenby said further expanded the group’s geographical reach.
“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,” he added.
Midwich will announce its final results for the year end on March 12.