Midwich final results confirm solid growth

Stephen Fenby, managing director of The Midwich Group: “We have delivered another year of strong profitable growth in 2017 across the Group.”

The Midwich Groups as reported another year of impressive growth with revenue up 27.5% from £370.1m to £471.9m (24.2% in constant currency). In addition to top line growth, gross profit margin increased by 0.2% to 15.5% driven by an improving product mix.

Adjusted operating profit increased by 35.1% from £18.5m to £25.0m (31.3% in constant currency). Adjusted profit before tax grew 35.7% from £17.9m to £24.3m (31.9% in constant currency). Strong cash flow conversion resulted in a conservative balance sheet at the year end with net debt of £22.3 million (0.8x adjusted EBITDA).

The Midwich Board has recommended final dividend payment of 9.65 pence per share (2016: 7.09p) taking the total annual dividend payment to 13.82 pence per share, an increase of 36.2% on a like for like basis
Stephen Fenby, Managing Director of Midwich Group Plc, said:

“We have delivered another year of strong profitable growth in 2017 across the Group.  The underlying business has performed very well, resulting in significant increases in revenue and profit while improving gross margins.  I am also pleased with the successful integration of the three earnings enhancing acquisitions that we made in the year, all of which have contributed positively to the Group result.
“We continue to develop industry leading businesses across the geographies in which we operate and there remain substantial growth opportunities, both organic and inorganic, in these regions and further afield.  We have continued to strengthen our central management team to help pursue and execute on our growth strategy and our strong balance sheet provides the necessary firepower to take advantage of the right opportunities.
“Trading in the first few months of 2018 has built on the good growth achieved in the prior year giving the Board confidence in delivering results in 2018 in line with its expectations.”

The Group’s staff of around 750, who operate out of 16 offices. The group has a large and diverse base of approximately 13,000 customers and long-standing relationships with around 330 vendors, including blue chip organisations.

Stephen Fenby, managing director of The Midwich Group: “We have delivered another year of strong profitable growth in 2017 across the Group.”

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