After its acquisition of Nimans and DVS this year, distie Midwich saw its revenues in the UK and Ireland grew by 85 percent year on year during the six months until 30 June.
Midwich snapped up Nimans for £27.5 million in February this year. The distributor turned over £114.3 million in revenues and pre-tax profits of £5.8 million for calendar 2020.
The group’s organic revenue grew 27 percent year on year, which the company attributes to acquiring Nimans and DVS.
The overall gross margin was stated to be approximately 15 percent, which Midwich says is largely equivalent to H1 2021. The group’s board expects stronger gross margins to be in sight for H2 as more live and face-to-face events return in a number of the markets Midwich services.
Midwich states its adjusted profit before tax is anticipated to be over £19 million, far higher than H1 2021’s £13 million, which is speculated to be around a 50 percent increase according to the trading statement.
Midwich said it saw better performance in the UK and Ireland in H1 2022 over H1 2021, with revenues increasing by 85 percent, again.
North America experienced a bigger increase in trading, with a more than 90 percent revenue increase while in EMEA revenue grew by 17 percent in the last six months.
Net debt however grew by about £55 million due to increases in working capital and M&A as normal seasonality returned along with major growths in the business
The overall outlook at the end of the trading statement shows Midwich retains strong order books, and expects this trend to continue unless the situation economically degenerates rapidly.
