Midwich Group (MIDW) H1 2026 earnings summary

Executive summary

• Revenue grew 3.2% year-over-year to £640.3m, driven by strong performance in the UK, Iberia, and US, offsetting declines in the Middle East, Germany, and Canada.

• Adjusted profit before tax rose 10.3% to £10.6m, with adjusted operating profit margin stable at 2.7%.

• Interim dividend increased 8.6% to 1.9p per share.

• Market share gains achieved in key markets and strategic areas such as audio, lighting, and unified communications.

• No acquisitions completed in the period, but M&A remains a strategic priority and pipeline is healthy.

Financial highlights

• Gross margin slightly decreased to 17.4% from 17.7% due to product mix and lower Middle East sales.

• Adjusted EPS increased 13.7% to 7.86p.

• Statutory profit before tax returned to £4.3m from a prior year loss.

• Net debt (excluding leases) reduced by £10m year-over-year to £138.1m; leverage at 2.4x, expected to fall to 2.0x by year-end.

• Working capital outflow of £23.9m, reflecting seasonal demand, especially in education.

Outlook and guidance

• Full-year outlook remains unchanged; trading in line with Board’s profit expectations.

• Board assumes no improvement in macroeconomic conditions for the remainder of the year and expects challenges to persist through 2026.

• Order book values up around 10% year-over-year.

• Continued focus on quality growth, operating efficiency, and both organic and M&A-driven expansion.

• Dividend policy revised to a payout ratio of ~25% of adjusted EPS.