Midwich Group announced today that it anticipates a significant increase in adjusted pretax profit and revenue for the first half of the year. The U.K.-based audiovisual distributor is optimistic about its full-year prospects, as long as economic conditions remain relatively stable.
Strong Financial Performance Forecasted
Midwich Group projects that its first-half adjusted pretax profit will surpass £21.5 million ($28.1 million), compared to £19.2 million in the previous year. This figure excludes exceptional and other one-off items. Additionally, the company expects its revenue to grow by over 7.5%, exceeding £610 million. The organic revenue growth of approximately 2.2% reflects a continued recovery in the live events market, offset partially by slower growth in the corporate and education segments.
Improved Gross Margin
Midwich Group’s overall gross margin has improved to approximately 16.3%, up from 14.9% last year. This increase primarily stems from the company’s sales mix.
Positive Outlook for the Remainder of 2023
Midwich Group is confident in its order book and expects to maintain momentum in the second half of 2023, as long as there is no significant deterioration in general economic conditions. While the company has not provided a specific figure, it anticipates that its full-year performance will meet its previous expectations.
At 0758 GMT, shares of Midwich Group were up 4.4% at 430.0 pence.