Distributor Midwich Group has reported solid end to last year with record results in its latest trading update for the year ended 31 December 2022.
The outfit expects record revenues for FY22 of £1.2 billion, climbing 40 per cent over the previous year.
The board of the LSE-listed company now anticipates reporting adjusted profit before tax for the 2022 period “comfortably” ahead of market consensus.
Adjusted net debt at the end of the year was under £100m (representing approximately 1.7 times adjusted EBITDA), in line with the board’s expectations. Cash generation was between 50 per cent and 60 per cent, which was also in line with the board’s expectations given the group’s strong revenue growth.
CEO Stephen Fenby said 2022 saw the strongest annual growth in the group’s history.
“Despite continued general economic uncertainty and rising interest rates, the strength of the business and expected growth of the AV market lead the board to look forward to 2023 and beyond with confidence.”
To support the delivery of its acquisition pipeline, Midwich Group said it increased its revolving credit facility from £80 million to £175 million in December 2022.
Last year it snapped up fellow UK distributor Nimans and other subsidiaries from Nycomm Holdings Limited for £27.5 million.
The group bought a majority stake in Cardiff-based distributor DVS.
Fenby said in September that the deals played a major part in the company’s H1 2022 growth.
