The print and AV disti Midwich has posted a strong first half of the year thanks to the European acquisitions it made earlier in the year.
Overall revenue climbed 19 percent year on year to £314.8 million for its six months ending 30 June 2019.
Earlier in the year the outfit snapped up Italian Prase and Swiss MobilePro in January, followed by Oslo-based AV Partner in May. It was all part of a cunning plan to enter new markets.
Midwich attributed its growth to these additions, stating that they have contributed positively towards the group’s gross and net profits, as well as expanding its presence in Europe and strengthening its capabilities in the broadcast and professional audio markets.
Midwich MD Stephen Fenby said: “The group has had another strong first half and I am pleased with our overall performance, particularly given political and economic uncertainties around the globe.”
“The increase in the group’s gross margin percentage reflects strong performance from the core business and a positive contribution from the acquisitions made in 2018 and the first half of 2019. The more specialist nature of the acquired businesses ensures that our value-add to customers and vendors continues to increase.”
The UK and Ireland was still the biggest region for the distie, with revenue of £154 million – nearly half of the company’s total turnover.
The distie stated that there was “good growth” in the core AV business in the UK, which was driven by demand for large displays, LED and broadcast technologies.
However, the UK’s growth rate of 0.3 per cent was eclipsed by that of the European business, which grew 47.5 per cent to £138 million, bolstered by the new acquisitions, along with strong trade in France, Germany and the Netherlands.
“We continue to have a healthy pipeline of strategic opportunities and have invested in the group’s acquisition and integration teams in the first half. We will continue our disciplined approach to acquire businesses that add value while both strengthening and diversifying our product offering and geographical reach. The strong performance reported in the first half and contributions from recent acquisitions give the board confidence in the prospects for the group,” Fenby said.
