Earnings release
Page 1
20 January 2026 Midwich Group plc ("Midwich" or the "Group") Year End Trading Update Results in line, with return to growth in the second half year Midwich Group plc (AIM: MIDW), a global specialist audio visual distributor to the trade market, is today providing a trading update for the year ended 31 December 2025. Revenue for the year is expected to be c.£1.3bn (2024: £1.3bn) reflecting a return to growth in the second half year. Gross margins held up well and are expected to be broadly similar to the prior year and adjusted profit before tax is expected to be in line with the Board's previous expectations of £30m*. Continuing revenue**, on a constant currency basis, finished the year slightly below 2024. Organic revenue was around 1.5% below 2024, a combination of a decline of c.3% in H1 and growth of c.0.5% in H2. Whilst the wider AV market conditions remain subdued, the Group's proactive focus on growth initiatives and the needs of its customers and vendors continues to support share gains in many key markets. We were pleased to see a return to growth in the UK & Ireland ("UK&I") which grew approximately 7% versus 2024, as a result of new vendor launches and market share gains. UK&I represents approximately 40% of Group revenue. The Group also saw a softening of revenue headwinds in both EMEA and North America in the second half of the year. Full year EMEA revenue reduced by around 5.5% vs 2024 (H1: -7%; H2: -4%) on a constant currency basis. In 2025, this region was impacted by significant softness in the German corporate end user market and, particularly, major delays to purchase decisions in education ahead of new federal funding, which we understand is now fully approved with projects expected to pick up from 2026. Outside of Germany (which represents around one third of regional revenue), EMEA saw full year revenue growth of approximately 9%, reflecting stronger demand for more technical, higher margin, product categories. Midwich's North American business saw revenues decline approximately 5% on a constant currency basis, resulting from tariff uncertainty and the planned transition to new technical vendors. As trade negotiations are finalised, and new vendors come on stream, we expect to see this region return to growth and deliver strong profitability over the medium term. The Group delivered strong cash generation in the year, of over 100% of adjusted EBITDA, ahead of our long-term expectations of 70-80%. Adjusted net debt*** at 31 December 2025 was c.£130 million, slightly below December 2024 (representing approximately 2.3 times adjusted EBITDA*). In addition, and as disclosed at its interim results in September 2025, the Group's review of its ERP deployment remains ongoing and is expected to be completed by the publication of its full year results in March 2026. Stephen Fenby, Group Managing Director, commented: "Whilst 2025 has been challenging for our industry, we have been proactive with our initiatives to drive improved future performance, including developing new vendor and customer relationships, building new revenue streams and pursuing operating and cost saving efficiencies. These initiatives include exploring opportunities around implementing AI solutions designed to improve the productivity of the business and drive future growth. I am pleased to see a return to revenue growth in the second half of the year, whilst our continued focus on operating efficiency and cash generation resulted in strong second half profits and full year operating cash conversion. Midwich remains a leading player in a large industry, and we continue to maintain or grow market share in key profitable regions, with a focus on delivering the best service to our customers and vendors. The Group's long-term focus remains on higher margin, more specialist product areas and we continue to target and exploit new growth opportunities, as well as retaining a tight focus on overhead efficiencies. Midwich remains well positioned for the year ahead and the Group continues to deliver both organic and inorganic growth in the longer term. I would like to thank all of my colleagues across the Group, together with our customers and vendor partners for their continued support." Midwich will announce its final results for the year ended 31 December 2025 on 17 March 2026. * Adjusted PBT represents continuing business operating profit less adjusted finance costs. It is stated before acquisition related expenses, share based payments and associated employer taxes, exceptional items, amortisation of acquire intangibles and impairments. Adjusted EBITDA represents continuing business operating profit before acquisition related expenses, share based payments and associated employer taxes, exceptional items, depreciation, amortisation and impairments and, for leverage purposes, includes a proforma twelve-month contribution from acquisitions **Continuing business revenue excludes the Group's small Swiss business (less than 2% of revenue) which is in the process of being closed
Page 2
*** Adjusted net debt is borrowings less cash and cash equivalents and excludes lease liabilities For further information: Midwich Group plcStephen Fenby, Managing DirectorStephen Lamb, Finance Director +44 (0) 1379 649200 Investec Bank plc (NOMAD and Joint Broker to Midwich)Carlton Nelson / Ben Griffiths +44 (0) 20 7597 5970 Berenberg (Joint Broker to Midwich)Ben Wright / Richard Andrews +44 (0) 20 3207 7800 FTI ConsultingAlex Beagley / Tom Hufton / Matthew Young +44 (0) 20 3727 1000 About Midwich Group Specialisation at scale. Midwich Group is a network of businesses which partner with the world's leading technology companies to acceleratetheir growth. Selling into over 50 countries from 23 global locations, the Group specialises in audiovisual technology -whether in state-of-the-art meeting rooms or on a festival main stage, our solutions help the world connect, communicate,or experience wow moments. Taking technology further. With services ranging from product distribution to complex system design, focused marketing campaigns to flexible financing solutions, and showcase events to seed funding for startups, the Group's ever-expanding offering is designed toadd value and solve its partners' biggest challenges. This has enabled the Group to maintain strong relationships with global manufacturers and a diverse customer base ofover 21,000, including professional integrators, event production companies and IT resellers in sectors such as education,corporate, retail and live events. Enabling tomorrow. With about 1,800 employees across the UK and Ireland, EMEA, Asia Pacific and North America, the company iscommitted to being a responsible employer. The Group wants to do the right thing and actively works to limit its impact on the environment and communities, and recognises the importance of giving back - find out more about our sustainability activities here. For further information, please visit www.midwichgroupplc.com