Midwich Group predicts 45% increase in half-yearly sales PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Midwich Group predicts 45% increase in half-yearly sales

Midwich Group revenue in the first half of 2022 is expected to be 45% higher than in the first half of 2021.

The predicted increase in half-yearly revenue to £560 million will mainly come from organic revenue growth of 27%.

But there will also be strong contributions from the group’s latest acquisitions in the UK. These are Nimans, a distributor of UC, telecoms, collaboration and AV technologies, and DVS, a distributor of video security products.

This combination of organic growth and contributions from acquisitions is expected to raise revenue by 85% in the UK and Ireland and even more in North America, where Midwich owns the Starin brand, by 90%. In EMEA, however, revenue was up by 17%, after substantial growth in the first half of 2021.

Gross margins were largely unchanged from the first half of last year at 15%. But with the partial return of live events and in-person activities in a number of markets, the Midwich Group board expects to see stronger gross margins in the second half of the year.

Adjusted profit before tax for the first half of 2022 is expected to be over £19 million, compared with £13 million in the first half of 2021, an increase of nearly 50%.

Cash generation was in line with the board’s expectations while net debt increased by around £55 million, as a result of mergers and acquisitions spending and working capital increases due to normal seasonality and significant growth in the business.

With order books remaining very strong, unless general economic conditions deteriorate significantly, the Midwich board expects the momentum seen in the first half of 2022 to continue throughout the remainder of the year.

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