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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.
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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