18th Dec 2019 09:32
(Alliance News) - Audio visual distributor Midwich Group PLC on Wednesday warned on profit for 2019 amid a slowdown in Europe late in the year.
Midwich said conditions have been difficult throughout the year, with many audio visual manufacturers reporting lower volumes.
Sentiment has been dampened by a slowing global economy, made worse by the trade dispute between the US and China, Brexit uncertainty, and political changes in some territories.
Midwich said despite these challenges, it has made "good" progress, and expects to report mid-single-digit organic revenue growth in 2019 and "significant" market share gains.
However, it also warned: "Following strong trading through the first three quarters of the year, the group has seen a slowdown in demand in recent weeks in both the UK and across key territories in continental Europe.
"In particular, we have seen fewer larger projects, which in turn has held back progress in gross margins."
As a result, though revenue will meet expectations in 2019, adjusted pretax profit is now expected between GBP30 million to GBP31 million. In 2018, the figure was GBP29.1 million, 20% higher than the year before.
"Despite current challenging market conditions, the group is well positioned and the Board remains confident in its future prospects," the company said.
Midwich, which is based in Diss, Norfolk, was trading 4.4% lower on Wednesday morning at 582.22 pence per share. In opening trade, it hit 520p a share.
By George Collard; [email protected]
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