10th Mar 2020 11:32
(Alliance News) - Audio-visual products distributor Midwich Group PLC on Tuesday reported double-digit growth in both annual profit and revenue despite tough macroeconomic conditions.
Midwich shares were 7.2% higher on Tuesday morning in London at a price of 493.00p each.
Pretax profit for 2019 was 13% higher at GBP23.8 million, with the adjusted figure rising by 8.0% to GBP31.2 million.
Midwich's revenue climbed by 20% to GBP686.2 million. Organic revenue, Midwich added, increased by 6.0%.
Diss, Norfolk-based Midwich is paying a final dividend of 11.05 pence per share, taking the year's total to 15.90p, meaning 4.6% growth on the year before.
"In a challenging year of economic and political factors, I am very pleased the group continued to grow strongly across all markets and geographies. Our organic growth was robust, and we have continued to strengthen our presence in more technically complex market areas," said Managing Director Stephen Fenby.
"Our targeted acquisition programme means the group entered three new countries during the year, in addition to strengthening our specialist audio and lighting businesses."
Continental Europe is now the company's largest segment, overtaking the UK & Ireland during 2019. During 2019, acquisitions were made in Switzerland, Norway, Italy, and Spain.
Revenue growth in Continental Europe was 45%, and 44% in Asia Pacific. The UK & Ireland was broadly flat due to a difficult market.
Midwich in February this year entered the North American market through the acquisition of Starin Marketing Inc. The firm is to spend up to USD46.1 million on Starin, and it raised GBP40 million in a share placing to help fund the deal.
On current trading and the outlook, MD Fenby said: "Market conditions continue to be generally challenging, but stable, albeit that the potential impact of the spread of the Covid-19 virus is still being assessed.
"At present, excluding any potential impact of the Covid-19 virus, the board's expectations for the full year remain unchanged."
By George Collard; [email protected]
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