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Midwich Group (MIDW) investor relations material

Midwich Group H1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2025 earnings summary9 Sep, 2025

Executive summary

  • Revenue declined 2.7% year-over-year on a constant currency basis to £620m, with organic revenue down 3.5% amid challenging market conditions, especially in Germany; group revenue was flat excluding Germany.

  • Technical product sales were more resilient, down only 1%, while mainstream product sales fell 7%.

  • Adjusted operating profit fell 24.5% to £16.6m, and adjusted profit before tax dropped 44.1% to £9.6m year-over-year.

  • Cost base was reduced, including a 5% headcount reduction and £3.1m in exceptional costs, with over 300 new vendor relationships launched in H1.

  • Cash generation remained strong, with operating cash conversion at 60% for H1 and full-year expectations of 70–80%.

Financial highlights

  • Revenue: £620m, down 2.7% year-over-year (constant currency), 3.5% organic decline.

  • Gross margin: 17.7%, slightly down from H1 2024.

  • Adjusted operating profit: £16.6m, down 23.4% year-over-year.

  • Adjusted EPS: 6.91p, down 38% year-over-year; statutory basic EPS was a loss of 2.42p.

  • Adjusted net debt: £148.2m, leverage at 2.5x adjusted EBITDA, expected to fall to 2.2–2.3x by year-end.

Outlook and guidance

  • Full-year outlook remains unchanged, with expectations of organic sales growth in H2 and cautious optimism for market recovery.

  • Net margins expected to improve in H2 due to seasonal demand, market share gains, vendor expansion, and cost savings.

  • Macroeconomic conditions, especially in Germany, France, and the US, expected to remain challenging for the rest of 2025.

  • Global AV market forecasted to grow at 3.9% CAGR to 2030.

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Frequently asked questions

Midwich Group plc is a specialist audio visual (AV) distributor serving the trade market. The company operates across Europe, the Middle East, Africa (EMEA), North America, and Asia Pacific. Its extensive product portfolio includes displays, projectors, technical AV, broadcast, professional audio, lighting, and unified communications solutions. Midwich Group caters to professional AV integrators and IT resellers in various sectors, including corporate, education, retail, residential, and hospitality. Established in 1979 and headquartered in Diss, United Kingdom, Midwich Group plc is publicly traded on the London Stock Exchange.

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