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Highlights

  • In FY23, MIDW’s statutory profit after tax surged by 71%, fuelled by higher sales of technical products, leading to highest-ever gross margin of 16.8%
  • Weak market conditions, particularly in the UK and Ireland, have resulted in a mid-single digit decline in the group's organic revenue year-to-date in FY24
  • MIDW aims to enhance its business value through strategic acquisitions, and organic growth and it plans to expand into new geographic markets

Midwich Group PLC (LSE: MIDW) is a specialist audio-visual distributor catering to the trade market. It is listed on the FTSE AIM UK 50, operating primarily in the UK and Ireland. It has a market capitalisation of GBP 410.4mn.

In fiscal year 2023, MIDW experienced a revenue increase of approximately 7.1%, reaching GBP 1,289.10 million. This growth was bolstered by seven acquisitions completed during the year and increased specialization within the audio market. Similarly, statutory profit after tax surged by an impressive 71%, fueled by higher sales of technical products, leading to the highest-ever gross margin of 16.8%.

Recent business update

According to MIDW’s press release dated 14 May 2024, the first four months of fiscal year 2024 have shown continued organic revenue growth for the group, consistent with the prior year's figures. The GBP 1.3 billion revenue achieved in FY23 represents less than 1% of the global market and 3-4% of MIDW's target addressable market, reinforcing its position as a leading global specialist Pro AV distributor. However, subdued market conditions, particularly in the UK and Ireland, have led to a mid-single digit decline in the group's organic revenue year-to-date in FY24.

Company outlook

MIDW aims to enhance its business value through strategic acquisitions and organic growth initiatives. It plans to expand into new geographic markets and enhance its product offerings to improve service delivery. As per the company, long term forecasts indicate that the global AV market, as projected by AVIXA, is expected to grow annually at a rate of 5.6% until 2028.

Top 10 Shareholders

The top 10 shareholders together hold approximately 73.21% of the total shares. Stephen Barry Fenby holds the largest shareholding at around 16.70%, followed by Liontrust Investment Partners LLP with approximately 14.90%, as illustrated in the chart below:

Stock performance

MIDW's stock price has dropped approximately 9.69% in the past three months and 11.98% over the last six months. With a 52-week low of GBX 335.00 and a high of GBX 469.00, the stock is currently trading below the midpoint of this range.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 19 June 2024. The reference data in this report has been partly sourced from EODHD/Others.