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Midwich growth story continues

A pre-close trading update from the specialist audio-visual distributor indicates growth has continued across all geographical regions during the first half
July 24, 2019

A pre-close trading statement from Midwich (MIDW) indicates growth across all geographies on a constant currency basis in the six months to 30 June, with Continental Europe and Asia Pacific performing particularly well. Top-line organic growth has been supported by the contribution of four acquisitions, giving access to three new markets (Italy, Switzerland and Norway) and strengthening capabilities in the audio and lighting segments. Overall gross margins have seen a slight improvement.

IC TIP: Buy at 564p

Cash generation is slightly ahead of expectations in the first half and is expected to align with the group’s long-term average at the year-end. Full-year outlook remains unchanged.