AIM-listed audio-visual equipment distributor Midwich Group (MIDW) confirmed its full-year targets after a return to growth in 2025. The firm is the leading specialist distributor of AV kit in a global market worth an estimated $325 billion annually.
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| Market cap: £187m | Yield: 3% |
GREEN SHOOTS OF RECOVERY
Although last year’s revenue is expected to be flat at £1.3 billion, H2 saw a clear return to growth. Also, margins held up well so pre-tax profit is seen in line with expectations at around £30 million.
Sales in the UK and Ireland, which represent 40% of total revenue, grew around 7% helped by market share gains. North American sales were down 5%, mainly due to tariff uncertainty, but headwinds eased somewhat in H2.
It was a similar story in Europe, where revenue was down due to ‘significant’ H1 softness in Germany. Buyers delayed purchases ahead of new federal funding, but with legislation now approved sales should pick up in 2026.
‘While 2025 has been challenging, we have been proactive with initiatives to drive improved future performance,’ said CEO Stephen Fenby. The group has developed new vendor and customer relationships, built new revenue streams and cut costs, added Fenby.
Midwich is a big player in a big market, yet its current revenue is less than 4% of its total addressable market. That gives some idea as to how fragmented and compartmentalised the AV distribution sector is globally.
2025 was something of a ‘lost’ year due to tariffs and budget decisions in the firm’s main markets. However, analysts expect global demand to grow by around 5% per year through to 2029.
If Midwich can maintain the momentum it saw in H2 and grow its market share, it is one to follow. With its strong balance sheet, it can also look to acquire growth through small earnings-enhancing acquisitions.
Read the press release here: https://midwichgroupplc.com/investors/
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